Florida Bankruptcy Attorneys Warn on Credit Repair Scams

by George on August 31, 2009

An unfortunate fact of life is the scenario of predator and prey – for every vulnerability there is a predator to capitalize on it. This holds true in both the natural world and the financial world. As credit problems have increased, along with bankruptcies, so have the incidences of deceptive companies billing themselves as credit repair experts. Credit Repair is really a misnomer. No one but you can actually repair your credit. Only time can erase valid incidents on your credit record. Erroneous reports can easily be challenged and removed by contacting the three credit reporting bureaus. And, that is about it. But there are scores of companies marketing themselves as “quick fixes” to your problems that are willing and ready to accept your money – and lots of it – and produce nothing.

Legitimate credit counseling companies abound, though, mostly non-profit agencies that offer advice and guidance. Bankruptcy lawyers in FL can provide you with a list of these approved companies.

According to the Better Business Bureau, complaints against credit repair companies rose 38% in 2004 and have been on a steady rise since then. If you are mired in debt, or have already dug yourself out, how do you recognize a claim to be fraudulent? First, refer to the first paragraph of this article. These companies can do nothing you cannot do for yourself. After this, here are some signs to watch out for in an advertisement’s rhetoric:

•    They want money up front. A lot of it. Never, never pay up front.
•    New Social Security Number. Some companies promise their customers a new, clean Social Security Number. Don’t believe it. It is virtually impossible to get a new Social Security Number and illegal to have more than one.
•    They want you to create an Employer ID. Some of these companies encourage 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 honorable 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 urges you not contact a credit bureau. This is absolutely your right and the proper way to clean up your credit. Bankruptcy attorneys in Florida can provide you with the addresses and phone numbers of the 3 major credit agencies.

The National Foundation for Credit Counseling maintains a webpage that offers solid and valuable information on credit counseling (which is different from credit repair, by the way) and advice for those overtaken by debt. Through their resources and those of bankruptcy attorneys in Florida, you can find a reputable credit counselor near you to answer further questions.