They’re everywhere – on the Internet, on TV, on magazines and newspapers – and they claim they can solve your credit problems in a snap. Don’t fall prey to these scam artists. Avoid companies that tell you truthful information can be changed or erased to improve your credit or that only the credit-repair company can remove old or inaccurate information. These claims are false.
Be wary if you are asked for a large sum of money before the credit-repair company completes the job. A money-back guarantee will not protect you from a disreputable company.
Changing Your Credit Identity
People who have filed for bankruptcy would usually be approached with a “file segregation” offer, the most popular term used by credit repair fraudsters. Here, you are promised a chance to hide unfavorable credit information by establishing a new credit identity. However, there is a problem. File segregation is against the law. It could be YOU, and not the credit repair people going behind bars for this crime.
More Scams To Beware Of
Consumers looking for an easy fix often are targets of these other credit-related scams.
First, we have credit by phone. Credit scammers often use 900 numbers, or pay-per-call services to market and operate their fraudulent activities. They would claim that all you need to do is call to get guaranteed credit. Instead, the caller might only receive a list of banks offering low-interest credit cards or a booklet on how to establish credit – and a phone charge of $50 or more. Obviously, it’s not a good way to establish credit.
Avoid gold or platinum card offers. There are a lot of promos floating around with gold or platinum cards promising to help you build your credit rating. Although they may sound like all-purpose credit cards, some cards only permit you to buy merchandise from special catalogs and will not help you obtain other credit. And to top it off, you may be asked to call a pay-per-call number for assistance. And thus, a really huge phone bill.
The last scam used would be the checking account scam. This scam, which tricks you into disclosing your checking-account number, typically begins with a postcard advertising easy credit approval or low-interest credit card rates. When you call, you are asked for your checking-account number as “verification.” Your number then can be magnetically encoded on a draft, which is forwarded to your unsuspecting bank for payment from your account.
Be vigilant about these exploitative scams and file a complaint with the Consumer Protection Hotline, or fill out an online form with the Attorney General’s Office. Never give out your bank account or credit-card number unless you know the company is reputable. This way you could avoid credit card repair scams.
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- What Everybody Ought to Fully Understand Pertaining To The Extreme Importance of Credit Repair
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Tags: business, business and finance, credit, Debt, Debt Consolidation