Trying to Find a Legitimate Credit Repair Provider

The Federal Trade Commission enforces consumer protection law and is responsible for protecting consumers against unscrupulous companies that steal our business through false claims, exaggerations, illegal services, and improper disclosure. With regards to dishonest credit repair clinics, practices like these became so pervasive that a federal law was passed to outline how credit repair companies can operate. The Credit Repair Organization Act (CROA) was passed to protect consumers and provide them with recourse if they are a victim of a dishonest credit repair provider.

When researching credit repair services, there are some key indicators that should alert you to steer clear. According to the FTC, avoid services that:

Require Payment in Advance - Credit repair providers shouldn't require payment prior to services being rendered. Under the CROA, these credit repair companies cannot require payment until they have completed the services promised.

Do Not Disclose Your Consumer Rights - Trustworthy credit repair companies will inform you that you can order one free copy of your credit reports each year from the credit reporting agencies, and that you are able to dispute inaccurate or questionable items on your own. If a company does not alert you to this information, specifically in the form of a CROA required written disclosure titled "Consumer Credit File Rights Under State and Federal Law", take your business elsewhere.

Endorse Creating a New Credit Identity - Some sketchy credit repair companies will actually advise you to create a new credit identity by using an Employer Identification Number (EIN) in place of your Social Security number. This is a serious crime and if anyone suggests this as an option, run the other way.

Lie About Services They Provide - Be wary of credit repair companies that promise to remove negative and accurate items, such as late payments and foreclosures, from your credit reports. No one can guarantee that items will be removed, particularly if the items are true.

Credit Repair Thoughts: http://www.creditrepairthoughts.org

Serving clients for over 18 years, Lexington Law prides itself on operating in strict compliance with the laws governing credit repair companies. Lexington Law's credit repair services have assisted clients with the removal of millions of negative items including late payments, collections, charge offs, and bankruptcies.

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