Credit repair refers to the simple process of identifying the errors in a credit report, and giving ways in which it can be solved, or solving it for you at a cost. Although a credit report may not always require to checked, and most of the times it is usually error-free, the law still dictates that it be done.
There are two ways to do this. One includes the do it yourself way, and the other one, is where you forward your credit report to a credit repair company.
However, not all the companies are as good as they claim to be. Out there, there is credit repair sites scam, where the company is usually more focused on how it can con you, than how it can help you. The following is a list of how credit repair sites scam happens.
The following is a list of how credit repair sites scam happens.
Asks to Pay Beforehand:
When a credit repair company wants to scam you, the first sign will be that they will want you to pay beforehand. This, they usually do so skillfully and convince you so well that the sole purpose is that they will speed up the process. But this is a scam.
According to the law, in the united states, for example, it is illegal and it’s prohibited that a credit repair site demands payment before they finish the credit report repair. Therefore, if you are looking for a credit repair sites scam, this will be the number one factor.
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More Time Taken
The next thing to look for, when investigating credit repair sites scam, is the amount of time they take to serve. According to the law, no credit repair process should take more than couple of months. This is usually ample time for the company to finish working for you, no matter their customer base.
Usually, there is usually a certain monthly fee that the company charges you. Therefore, by delaying this, they always are aiming at charging you for the extra time that they are usually imposing on you. If you notice this, then it’s time to alert the authorities.
Know your Rights
Your rights are not being read to you, is another point in credit repair sites scam investigation. Before the company begins working for you, it is usually a fundamental requirement that the company reads your rights for you.
When a company hides your rights from you, they are usually aiming at taking advantage of the fact that not many people know their rights to the fullest.
Therefore, they fail to tell you that sometimes there is always a way whereby you can do the credit repair yourself.
When a credit repair site wants to scam you, there will always in one way or another convince you not to alert any other company or bureau, with some little catchy terms of making you the best deal.
While this sometimes may be entirely true, it is not usually always the case.
Sugar Coat Offers
The reason behind any marketer is to make a profit. Therefore, they will always sugar coat their offer, such that it appears to be the best. They then ensure that they weave you into their fingers in such a way that you can’t escape.
For this reason, it is important that before and after you enroll to a credit repair site, you ensure that you contact the nearest bureau and make sure that they follow up on your behalf on the progress of you repair since that is their primary role.
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When a credit company promises, or even hints at raising your credit score, run. This another way in which credit repair sites scam works.
They will come to you, with a promise that no matter how bad your credit report is, they can be able to work a way out for you, whereby you can get away with the bad bookkeeping, missing records, and end up raising the credit score.This is a scam.
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By law, a credit report repair should not compromise on quality, as checking for and penalizing for those errors are its main purpose. So, if they promise you that, most of the times, they will ask you to pay more, and hence are scamming you, and you are just thinking that they are being nice.
Another way that a credit repair company can scam you is by not offering you any cancellation policy, or giving you a very shady one. In the law, any individual is usually allowed to make a cancellation into the process of credit repair at certain stipulated moments.
Therefore, when a credit repair site makes this unavailable for you or makes it so shady that it becomes impossible for you to cancel, then they are scamming you, to make sure that they go away with the extra cash.
Therefore, before committing yourself to any credit repair site, then it is important to ask for this very important detail.
“Anytime you cancel a credit repair, you should be awarded a refund.”
This usually occurs, when the customer realizes that they can do the credit repair for themselves, or cancel the credit repair process before it is completed, because of other reasons.
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Technically, if the period that had been agreed upon has not become terminated, then it is in order that the money you had paid for the process is calculated and a refund given.
But for the credit repair sites scam related companies, this will never or rarely happens. This could be due to a small legal clause being so well hidden in the terms of the agreement because it is a requirement of the law, or it does not exist at all.
After a brief look at the seven reasons and ways in which a credit repair site can perform scam, it is then the time for one to make a short list and a quick look at the laws and regulations that govern credit report repair.
It is paramount to know what you as an individual are required to do for yourself, and the extent to which it becomes a requirement to enquire for the help of a credit repair company.
Then, it would be wise to go to the internet and make a list of all the companies linked with the scam and avoid them like the plague.