Credit Repair - 5 Ways the Law Protects Consumers Against Deceptive Credit Repair Organizations

Ξ August 5th, 2008 | → 0 Comments | ∇ Credit help |

If you have bad credit, legitimate credit repair and/or credit restoration services can be a big help if you are trying to establish creditworthiness. The problem is, there are companies that prey on people with credit problems. Title IV of the Consumer Credit Protection Act (Public Law 90-321, 82 Stat. 164) was developed to protect consumers by prohibiting deceptive practices by credit repair organizations.

Here are 5 ways the law protects you against deceptive credit repair organizations.

1. Credit repair companies must “provide prospective buyers of their services with the information necessary to make an informed decision and may not use deceptive advertising”. Beware of any credit repair services or organizations that will not answer ALL of your questions fully and completely, or that make claims that seem too good to be true.

2. Credit repair companies “may not make any statement, counsel, or advise any consumer to make any untrue or misleading statements to any credit reporting agencies”. Beware of any credit restoration organization that claims to have the ability to add false items or remove detrimental (yet accurate) items from your credit report as this cannot be done. Legitimate credit repair organizations will create a clear, affordable, and achievable plan that will help you establish creditworthiness, not claim to be able to alter items on your credit report.

3. Credit repair companies “can not make any statement, counsel, or advise any consumer to make any statement where the intended effect of which is to alter the consumer’s identification.” There are credit repair organizations that may claim to be able to give you a new social security number, allowing you to start over with a brand new credit file. Beware. This is illegal. No organization other than the federal government can provide you with a social security number.

4. Credit repair organizations “may not charge or receive any money or other valuable consideration for the performance of any service before such service is performed.” Beware of any organization that demands full payment of thousands of dollars for services in advance. This is a sure sign of a rip-off.

5. You have the right to cancel your contract with any credit repair organization within three (3) business days from the date you signed it. If you sign a contract with a credit repair service and want to take your time reading it, you have three days to think it through. Take this time to get any afterthought questions answered by the credit repair organization. You may also take this time to get your contract reviewed by an attorney.

Remember, all credit repair organizations are not bad. There are legitimate credit repair services that can really help you establish creditworthiness so you can back on your feet. Read the full text of the law regulating credit repair organizations at http://www.ftc.gov/os/statutes/croa/croa.shtm and know your rights. Don’t get “got”. Get help.

-Ken S.

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Credit Counseling - Choosing a Counseling Agency

Ξ August 5th, 2008 | → 0 Comments | ∇ Credit help |

There are many credit counseling agencies to pick and choose from and knowing what to look for is very important. Reputable credit counseling agency provide their customers with advice on how to take better control of your money and manage your debt. They should be able to provide you with a budget and free educational information packets along with class style financial workshops if available in your state.

Reputable agencies with a long standing history will provide with you information without pushy sales tactics to get you signed up as an account. When searching for a credit agency doing your homework is essential. You should interview several agencies, and ask a friend or relative for budgeting advice. Now once you have a list of potential credit agencies with whom you have already interviewed the next best thing is to check with the Better Business Bureau or even your State’s Attorney Generals Office and ask if there were any complaints made.

I realize that having financial difficulties can bear a lot of pressure on you and your family, and when you are under pressure you feel like you need to solve your credit problems quickly by choosing an agency without doing your due diligence. I do not recommend going in blind without doing any research done. With that in mind here are some important indicators that of a reputable agency before choosing to sign up:

  • Have in writing the fees the agency will charge you for their services. Agency fees should be reasonable (not more than $50/month for a debt management plan), but this can vary by State.

  • The credit counseling agency should be non-profit.

  • The agency should have been in business for at least seven to ten years.

  • The counselors at the credit counseling agency should be certified by an independent organization.

  • The agency should be accredited by the International Standards Organization (ISO) or by the Council on Accreditation (COA).

  • The agency should be a member of one of the trade associations: either Association of Independent Consumer Credit Counseling Agencies (AICCCA) or the National Foundation for Credit Counseling (NFCC).

  • Consumers should consider checking with the Better Business Bureau for any consumer complaints made against the agency.

  • The agency you are considering should be licensed and bonded to do business in your state.

  • The agency’s willingness to waive the fees if you simply can’t afford them.

  • The agency should spend a reasonable amount of time for your consultation/budgeting session. At least an hour is needed.

  • The agency should provide you with a written budget based on your personal financial situation.

  • Send you a monthly statement detailing your payment information and fee.

Reputable agencies should also offer you workshops to attend or send you monthly newsletters informing you of important changes in credit news. If an agency is not willing to answer your questions or you feel that the answers are not satisfactory, call someone else. You want to choose an agency that is reputable and willing to help you.

Edwin M. Clark is one of the founding members of “The Affiliate Program Reporter” To read and find out more information about their findings and reviews in the field of home based internet business courses check out The Affiliate Program Reporter

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Sprinkling Sugar in the Credit Crunch

Ξ August 5th, 2008 | → 0 Comments | ∇ Credit help |

If the talking heads in the financial world are to be believed, the problems in the credit markets will all be over by Christmas. That timescale has been given in relation to global strife in the past and there are reasons to believe that it will be no more accurate this time than it was in 1914.

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