A Few Signs of a Credit Repair Scam
There are laws set in place to guard your rights and certain guidelines all Credit Repair companies have to follow. Warning signs for credit repair scams include companies that claim it can guarantee a specific increase in your credit score or get rid of negative credit information on your credit report even though the information is accurate and verifiable. Be on the lookout for these tactics companies will use to try and scam you.
Refuses to Explain Your Legal Rights
When hiring a Credit Repair Company the consumer has legal rights. After enrolling in any service you have three days by law to cancel and receive a full refund.
Disputing information with the Credit Bureaus is a legal right and can be done for free.
It is not legal for credit repair companies to guarantee results or give you a definitive timeframe it will take to fix your credit.
Claims a New Identity is Needed
Offering you a new identity or Employer Identification Number (EIN) is a tactic scam companies use to state they can guarantee results. This is illegal and puts the consumer at risk for future legal issues.
Asks You to Misrepresent Information
The most common scam that companies will use, is asking you to state that everything on your credit report is identity theft. This is illegal and the consumer will be fined if a court case is brought against them. In order to file fraud on your credit profile you have to have a legitimate case and have filed a police report of the fraud.
Approved Credit Resources strives to be transparent and provide the consumer with all the necessary information to make informative decisions pertaining to their credit.
We all know the old saying, “If it sounds too good to be true, it probably is”. Beware of any company that pushes for an enrollment through the guise of guaranteed results. Remember there are great companies out there, you just have to watch for the Red Flags when hiring anyone to repair your credit.