The Credit Robbers - The Myth of Credit Repair
Over the past fifteen years or so, many “Credit Repair Companies” or “Credit Clinics” have opened up across the nation. Their main purpose is to help the individual remove incorrect and or negative items from their credit report.
Unfortunately, some of these outfits are scams from the word “GO” and have given the credit repair industry a bad name. They take the consumer’s money and then tell them it will take months to get results, then disappear without a trace.
If you decide to hire one of these credit repair companies, check them out first. A Credit Robber is always lurking.
First, if the sales person or company uses the word “Guarantee” or “Delete”, Run and don’t look back! There is no way to “Guarantee” that ANYTHING will be removed from the credit report! Think about it for a minute. Unless he or she is going to “hack” into the credit bureau’s computer, how can they guarantee anything? The credit repair company is NOT the one that “deletes” the information!
Ask to see their license, get a copy of it, and then contact your State’s Secretary of State to make sure that the company has obtained and maintained the necessary license and/or bond. If they charge a fee BEFORE they provide the services they promise, they most likely must maintain a Surety Bond for TWO YEARS after they cease doing business in that particular state.
While you are on the phone with the Secretary of State’s office, ask if there have been any unresolved complaints against that particular credit repair company. Find out how long they have had their license as well.
There have been a number of credit repair companies that guarantee to remove any derogatory items from a consumer’s credit report.
Contact the Attorney General’s office in your state as well, see if there have been any complaints and find out if they are under any kind of investigation. The Better Business Bureau is also another good organization to check.
If the credit repair company has a 24 hour offer, then tell them to get lost. They are trying to scam you! Tell them that you want a copy of the contract you will be signing and any disclosures so that your attorney can take a look at it. If they balk again, good for you - You just flushed out another con-artist. Call the Attorney General to have them investigated, so no one else will fall into their trap!
Although TIME will repair a damaged credit report, it is during this time, that The Credit Robbers are taking advantage of you through the system that is already in place.
But without the proper savings and budgeting, the smallest disruption in an individual’s cash flow will destroy the BEST credit report. In fact, the “better” the credit, the more potential for damage there is to your credit score and credit report.
I will encourage you to go to your local book store and obtain a book on budgeting. Talk to a family member, friend, or clergyman to get help on setting up and sticking to a budget. One of the reasons people run into the credit situations they do, is because when the emergencies hit, there is nothing to fall back on. Don’t let it happen you. Protect your good credit and your good name!
Robert Miller, Ph.D.
Investigations Analyst
TheCreditRobbers.com
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