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4 Ways To Spot a Credit Repair Scammer

Many people facing high debt and low credit scores are often looked upon as potential easy prey by shady businesses masquerading as credit counselor and credit repair companies. In this entry, we’ll share tips for recognizing red flags of these predatory scammers.

Are all credit repair companies scammers?

No, but as is often the case, it’s the bad apples that often harm the reputation of much of the industry. The best word of advice is to – if you must – approach any credit repair company with lots of skepticism. The overall mission of credit repair companies is fairly straightforward: for a fee, they’ll remove negative information from your credit report, leaving you with an better credit score. Unfortunately, the only goal of the scammer is to take you money and split.

How can I recognize a credit repair scam?

Thankfully, there are a host of signs to look for in spotting a potential scammer. Chances are good that you’re dealing with a scammer if any of these occur:

  1. You’re not given a copy of the Consumer Credit File Rights Under State and Federal Law. It’s actually required for credit repair companies to give you a copy of this as it states your rights to obtain a credit report and dispute any inaccurate credit report information.
  2. You’re asked for money upfront. Actually, through the Credit Repair Organizations Act (CROA), credit repair businesses are prohibited from demanding upfront payment.
  3. You’re not provided with a contract to read before signing. Also, make sure any contract you’re presented with contains:
  • The amount they’re charging you
  • The date by which the services will be performed and completed
  • A provision informing you that you can cancel the contract within three (3) days
  • Comprehensive details about the services to be performed for you
  • The business offers to create – or asks you to create – a new identity, complete with new Social Security number or federal employer identification number (EIN).

These numbers aren’t new; they’re stolen Social Security numbers. If you pay the scammer or create the identity yourself – even upon their request – you’ve committed fraud and could be facing prison time and fines.

Do things the right way by partnering with The Oswalt Law Group.

Like most things in life, there’s a right way and wrong way to get out of debt. Because of the potential to get into even further financial and legal trouble, this is one of those areas where you definitely want to do things the right – and legal – way. If you’re dealing with crippling debt, the skilled team here at The Oswalt Law Group can put together a workable strategy unique to your own situation. For a free consultation, call us at (602) 225-2222.

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