- Home
- Finances and Investing
- Finance
- Trying to Find a Legitimate Credit Repair Provider
Trying to Find a Legitimate Credit Repair Provider
- By Stuart Hunter
- Published November 20, 2009
- Finance
- Unrated
Stuart Hunter
Providing credit repair services since 1991, Lexington Law has helped over 500,000 clients legally take on their credit. Last year alone, Lexington Law helped clients remove over 600,000 negative items from their credit reports.
View all articles by Stuart Hunter
The Federal Trade Commission enforces consumer protection law and is responsible for shielding consumers from companies that steal our business through false claims, illegal services, and improper disclosure. With regards to shady credit repair services, practices like these became so common that a federal law was passed to clearly outline how credit repair companies can operate. The Credit Repair Organization Act (CROA) was passed to protect consumers and provide them with recourse if they are victimized by a dishonest credit repair organization.
When researching credit repair services, there are some key indicators alerting you to stay clear. According to the FTC, avoid credit repair services that:
Require Payment Before Credit Repair Services are Performed - Credit repair companies should not require payment they have worked on your case. Under the CROA, these companies cannot require payment until they have completed the services promised.
Do Not Disclose Your Consumer Rights - Trustworthy credit repair organizations will let you know that you have
a right to order one free copy of your credit reports each year from each of the credit bureaus, and that you are able to dispute questionable items on your own , free of charge. If you are not provided with this information, specifically in the form of a CROA required disclosure titled "Consumer Credit File Rights Under State and Federal Law", you should probably look elsewhere.
Endorse Using a New Credit Identity - Some shady credit repair companies will actually go so far as to advise you to create a new credit identity by creating and using an Employer Identification Number (EIN) in place of your Social Security number on credit applications. This is a serious crime and if anyone suggests this as an option, run the other way.
Lie About Services They Can Provide - Be wary of credit repair companies that guarantee to remove negative and accurate items, such as bankruptcies and foreclosures, from your credit reports. No one can guarantee that items will be removed, particularly if the items are true.
When researching credit repair services, there are some key indicators alerting you to stay clear. According to the FTC, avoid credit repair services that:
Require Payment Before Credit Repair Services are Performed - Credit repair companies should not require payment they have worked on your case. Under the CROA, these companies cannot require payment until they have completed the services promised.
Do Not Disclose Your Consumer Rights - Trustworthy credit repair organizations will let you know that you have
Endorse Using a New Credit Identity - Some shady credit repair companies will actually go so far as to advise you to create a new credit identity by creating and using an Employer Identification Number (EIN) in place of your Social Security number on credit applications. This is a serious crime and if anyone suggests this as an option, run the other way.
Lie About Services They Can Provide - Be wary of credit repair companies that guarantee to remove negative and accurate items, such as bankruptcies and foreclosures, from your credit reports. No one can guarantee that items will be removed, particularly if the items are true.