Has a credit repair company violated your civil rights?
Unsuspecting customers with bad credit are constantly being ripped off by so called credit repair companies promising to increase their credit rating and fix their bad credit. Robert Sykes, senior officer of the FTC’s Bureau of Consumer Protection in Washington, D.C., states that while “there are legitimate credit restoration services such as Credit Repair Dallas who follow all industries standard guidelines and best practices, but the FTC has found that most credit repair companies make false claims and fail to deliver results.” These fly by night credit repair companies call themselves all kinds of names such a credit counseling services,credit doctors , and debt consolidation specialists; they claim they can clean up your credit so you can get new credit cards auto loans,mortgages, etc. The simple truth is, only the creditor and the credit bureaus can remove a debt from your credit record permanently.If any of the scenarios below describes your interaction with a “credit repair” company that guaranteed to boost your credit rating and delete negative items on your credit report, then you may be able to sue for damages.Here are these dubious scenarios:
- The “credit repair” agency made you pay a set up fee upfront.
- The “credit repair” agency guaranteed you unsecured credit cards and loans.
- The “credit repair” agency said it could “improve” your credit rating, or “restore,” “re-establish” or “erase” “negative” or “trashed” credit.
- The “credit repair” agency said you could “remove” or “erase” from your file such as such as bankruptcies, judgments, payment delinquencies ,or liens.
- The “credit repair” agency advised you that you could start up a “new” identity for credit purposes (for example, by signing up for an Employer Identification Number to use instead of your Social Security number).
- The “credit repair” agency didn’t disclose the fact that you have the legal right to dispute inaccurate information in your credit report personally and can do so by getting in touch the credit bureau directly.
- The “credit repair” agency neglected to tell you that you could cancel your contract with them within 3 days after signing.
- The “credit repair” agency guaranteed you that leasing or buying its product or services, for example an power yacht, would itself raise your credit score.
- The “credit repair” agency advised you not contact the credit reporting bureaus directly which is your legal right.
The bottom line is there are plenty of scammers in this industry so it’s up to you the consumer to do your due diligence when it comes to hiring a third party to help you with your credit report.If you’ve fallen victim to any of the tactics above then you do under the law have to right to sue these companies for making false claims.