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CREDIT REPAIR

Has a credit repair or credit counseling company violated your rights?

Innocent consumers with bad credit or poor credit histories are continually scammed by companies promising to repair their credit rating or credit report. Jodie Bernstein, director of the Federal Trade Commission's Bureau of Consumer Protection in Washington, D.C., notes that while "there are legitimate, not-for-profit credit counseling services, the FTC has never seen a legitimate credit repair company." These bogus credit repair organizations call themselves credit advisors, credit repair clinics, credit counseling services, debt advisors, and credit doctors; they promise to clean up your credit report so you can get an auto loan, home mortgage, personal loan, insurance, credit card, and more. According to the Credit Repair Organizations Act (CROA), it is illegal to charge fees before performing credit repair services. In reality, only the credit bureau or the creditor can permanently remove a debt from your credit record.If any of the following describes your experience with a "credit repair" organization that promised to improve your credit rating or erase bad credit, then you may be the victim of a credit repair rip off:
  • The "credit repair" company required you to pay a "set up" fee up front.

  • The "credit repair" company promised you pre-approved unsecured credit.

  • The "credit repair" company claimed it could "re-establish" your credit rating, or "improve," "restore" or "erase" "wrecked" or "bad" credit.

  • The "credit repair" company claimed you could "erase" or "remove" from your credit report bad credit entries such as bankruptcies, judgments, liens or payment delinquencies.

  • The "credit repair" company told you that you could create a "new" identity for credit purposes (for example, by applying for an Employer Identification Number to use instead of your Social Security number).

  • The "credit repair" company failed to advise you that you have the legal right to dispute inaccurate information in your credit report on your own and can do so by contacting the credit bureau yourself.

  • The "credit repair" company failed to advise you that you could cancel your contract with it within 3 days after you signed it.

  • The "credit repair" company promised you that buying or leasing its product or services, for example an automobile, would itself improve your credit rating.

  • The "credit repair" company recommended that you not contact a credit reporting company directly.
Credit Repair Scams In the News
Unhappy Seattle consumers are targeted by a door to door credit repair company claiming to be able to repair their bad credit. (June-15-05) [KOMO NEWS]

FTC goes to court with credit repair business and wins. Defendant is banned from future credit repair activity and pays $100,000 in fines after violating the FTC Act and CROA by requiring advance payment for credit repair services, and making false promises to improve credit reports. (May-25-05) [FEDERAL TRADE COMMISSION]

Federal Trade Commission sues "credit repair" companies after requesting up-front fees for credit repair services. (Jan-27-05) [FEDERAL TRADE COMMISSION]

Register your Credit Repair Complaint or Case

If you or a loved one has suffered from credit repair fraud, you may qualify for damages or remedies that may be awarded in a possible credit repair lawsuit. Please click the link below to submit your complaint and we will have a lawyer review your credit repair complaint.

At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.

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READER COMMENTS

Posted by

on
I have been working with credit repair for 3mths now paying them 99.95 too repair my credit. I have not seen my credit score go up.... They claim I have had negative items removed but it's not helping. As of today I missed a payment for last mnt cause my payments are due on the 28 of each month and they took my money out of my account today and plus a extra 19.95 for some fee that I have know clue about.. And I called in too try too get my money back and I would pay it at a later date and they wouldn't credit me back my money... What can I do.. I really needed my money too pay my rent or me and my kids will get put out.... Help please

Posted by

on
Paid $700 for credit repair and the company did not improve my score and only made efforts minimally to dispute negative items. Only one item removed. Refuses to take any calls now and claims to be traveling for 3 months. What can I do for a refund or to sue in court.

Posted by

on
I have been sending my clients to a credit restoration company for the past year. They have been charging my clients an upfront fee of $1500. The results have been terrible. Non of the clients have had their credit improved and the company owner refuses to take phone calls. I would like to know what options do I have to offer these clients now that they have been scammed for this money.

Posted by

on
US Credit Management did not apply any of money drafted to my debts. Company later filed bankruptcy. My debts are still unpaid, my credit is ruined and they have my money.

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