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Erie Bankruptcy Lawyers Assist You To Avoid Credit Repair Scams
By plrprousers | July 15, 2009
Over one million Americans filed for bankruptcy in 2008. The average American with a credit file owes more than $16,000, excluding their mortgage. As the amount of personal debt rises, so does the happenings of credit scams and scammers, eager to prey on those with troubled credit scores. Per the Better Business Bureau, complaints against credit repair companies rose 38% in 2004 and have been on a steady increase since then. Overblown claims of producing clean credit histories from dismal credit reports are tantalizing to those bogged down in defaults, late payments, foreclosures and bankruptcies in their name. But, in reality, these credit repair and credit counseling agencies do nothing for the debtor except take money they cannot afford and sometimes vanish into the night leaving no trace. Erie bankruptcy lawyers do not advise these services.
Credit Repair
Credit Repair companies can do nothing for you that you aren’t able to do for yourself. No matter the claims, credit bureaus will not remove negative items from your credit report without good reason: (1) the item has aged out and drops off your report; or, (2) you dispute the item in writing to the credit bureau, providing evidence in your behalf. Period. Here are some words of warning to watch out for in claims made by credit repair companies:
• They want money before they do anything. A lot of it. Never, never pay up front.
• New Social Security Number. Some companies gaurantee their customers new, clean Social Security Number. Don’t believe it. It is virtually impossible to receive a new Social Security Number and illegal to have more than one.
• Produce an Employer ID. Some of these companies advise their customers to create an employer ID number with the IRS instead of using their Social Security number to produce a “new” credit record. Don’t do this either. Skirting the issue in this manner will only deepen your trouble.
• Consumer rights. Any honest company should provide you with a copy of your consumer rights and actions you can take for yourself.
• Dispute all information. Some companies advise their customers to dispute all the information on their credit report. This is fraud and you may be subject to persecution.
• The company recommends you not contact a credit bureau. This is absolutely your right, the right way to clean up your credit, and the recommendation of lawyers of bankruptcy in Erie.
The National Foundation for Credit Counseling maintains a webpage or can be reached by phone. Their webpage offers valuable information on credit counseling and advice for overwhelmed debtors. Through their resources, you can find a reputable credit counselor near you to answer any questions. Additionally, Erie bankruptcy lawyers can offer further guidance on finding reputable credit counselors.
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