Credit Repair Scams
by: Michael Creditfirm.
What is a credit repair scam?
A credit repair scam is a fraudulent scheme involving any individual or company, not following the guidelines of the Credit Repair Organization Act (CROA) and accepting money in exchange for a promise to increase a consumer’s credit score or create a new credit identity.
Illegal credit repair companies take advantage of thousands of consumers every day, scamming them out of their hard earned money, and even causing irreparable damage to their credit reports.
This is the reason the CROA was created.
The CROA laws outlawed many common credit repair scams and set a standard for legitimate and legal credit repair agencies to follow.
One of the most common credit repair scams, which was outlawed by the CROA, was making credit file segregation illegal. This made creating a new identity using an EIN number for the purpose of credit repair illegal.
But the CROA didn’t stop there, one of the biggest issues with credit repair was the large up-front fees which credit repair companies commonly charged for their services. Many of these scam credit repair services would charge hundreds or even thousands of dollars up-front, before any work had even been initiated and then disappear without a trace. The CROA solved this issue by forbidding credit repair companies from accepting payments until after the agreed upon services had been performed.
Since its’ inception, the CROA laws have become an invaluable resource in helping to distinguish legitimate and legal credit repair services from illegal credit repair scams.
Make sure a credit repair company is legit.
Understanding the CROA laws and your consumer rights will help you find a legitimate credit repair company and avoid credit repair scams.
Be sure to steer clear of any credit repair company which ignores these laws by requiring up-front payments, guaranteeing results, or offering to create a new identity for you.
CreditFirm.net operates in full compliance of all laws regulating the credit repair industry. Our 15 years service shows our dedication to our clients and our devotion to providing legal credit repair services you can always count on.
Why Choose CreditFirm.net?
Assurance. Our Credit Repair process was developed by experienced attorneys.
Speed. Documents are typically processed and sent out for investigation within 5 days.
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