Nowadays, there are so many illegal companies that are calling people who have bad credit history are promising to do their best to clear everything. This way, it enables the clients with poor credit records by availing car loan, home loan, personal loan and other types of loan. This process is known as Credit Repair.
Based on the Federal Trade Commission or FTC, there are no existing legal company that can clears up the credit history of a certain client. This is considered as a scam and will only take an advantage of their client. If it happens that you are being contacted by a company that provides Credit Repair, consider the following points that will serve as your source for determining the credibility of the company. These include:
- The company requires you to pay for their offered services before they do the actual execution of their service. According to the Credit Repair Organizations Act, a company that offers this service cannot require their client to pay until they have done the agreed terms and conditions that they have promised to their clients;
- The company prevents you to identify your rights and what alternatives that you can do without extra charges;
- The company advises you to avoid communicating directly to the identified major national credit reporting companies without their permission;
- The company informs you that they can make actions for removing most or the entire negative credit information regarding your credit history, even all details are recent and correct;
- The company will recommends that you can try using different credit identity and then, a new credit history report by applying for the Employer Identification Number to be used instead of your legal Social Security Digits; and
- The company will recommend you to disagree with all the details regarding your credit history report, even though all the information is not reliable and legal.
If in case that you have followed all the advices from the company just to clear up your credit history, this can lead you to face many legal charges. It is considered as a crime to lie for applying loan and credit to other lending company. You will be charged with different case since it is considered as illegal. You should not be tempted with their objectives because most of their motives are to get money from you.
Eventually they are just giving you false assurances and they will take an advantage from you. If it happens that you have encountered such, you can directly report it to the authority to stop illegal operation and to prevent you from committing charges. Be responsible of your debt and control yourself for spending money.