Archive for the ‘credit repair agency’ Category

Beware of Illegal Credit Repair Scams

Saturday, July 26th, 2008

When you want to buy a home or a car and your credit score causes would-be creditors to shake their heads and escort you to the door, it’s tempting to respond to those high-volume hucksters on TV who promise to repair your credit.
They all make the same claims:
• “Credit problems? No problem!”
• “We can erase your bad credit — 100% guaranteed.”
• “Create a new credit identity — legally.”
• “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
The truth is, they can do none of that. They can’t erase bankruptcy, judgments, or overdue bills. The only thing they can do is help you get errors removed. Unless everything negative on your report is in error (such as when you’ve been a victim of identity theft), only time, a conscious effort, and a personal debt repayment plan will improve your credit report.

While there are free and low-cost services available to help you, you won’t see them advertising. The only reason a credit repair company spends the money to advertise is to get you as a customer – and to enrich their own bank accounts at your expense – sometimes by many thousands of dollars.

By using them, you’ll only make your financial situation worse by paying them to do something you can easily do yourself. But even worse than losing money is the fact that you could be subject to prosecution if you follow some bad advice. (See items 4 & 5 below.)

If you think you need help removing errors and do decide to respond to a credit repair offer, look for these tell-tale signs of a scam:
1. Companies that want you to pay for credit repair services before they provide any services. (This is a violation of the Credit Repair Organizations Act.)
2. Companies that do not tell you your legal rights and what you can do for yourself for free.
3. Companies that recommend that you not contact a credit reporting company directly.
4. Companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
5. Companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.
If anything a credit repair company suggests doesn’t feel right to you – just don’t do it.

Mike Clover:
CreditScoreQuick.comYour Resource for free credit score reports, fico scores, loans, credit cards, insurance and identity theft protection and credit repair advice. Now Offers Free Information on Consumer Credit Repair and Assistance

Thursday, July 24th, 2008

As part of a continuing credit education program, offers consumers tips on how to minimize credit risk and repair credit history in their online blog.

(PRWEB) July 24, 2008 —, created by a professional lender, recently introduced a series of articles dedicated to helping consumers learn how to repair their credit histories and lower credit risk, absolutely free of charge, through an online blog at Recent topics in the blog include:
* Rental and foreclosure collections and what it means in today’s housing market.
* How consumers can determine their credit score at no cost and what it means for their financial planning.
* How to avoid, or recover from, financial identity theft.

Before the recent housing crunch and increasing foreclosure rates, many consumers were unconcerned about their negative credit history, and banks were eager to get loans approved for customers. In order to receive quick loan approval, customers with negative credit histories were ripe for credit repair company’s assistance. According to owner, Mike Clover, “During the real estate boom, credit repair companies were beating down my door for clients that needed credit restoration. We tried all kinds of companies who stated that they could help our clients out.”

Over time, Clover realized these companies were not doing anything except taking clients money. The fees these so-called credit repair companies charged consumers averaged $1,000 or more. “Being lenders during this extremely busy time, we did not have the time to repair our client’s credit reports, so we outsourced it. After exhausting just about every credit repair company in town, we decided to start directly helping clients repair their credit through our new company,,” says Clover.

“We knew what needed to be done to help out individuals and families who were facing financial trouble so we started posting how to repair your credit articles on our Web site blog,” continues Clover. “Since we had first-hand experience in how to really fix credit reports, we decided to post our first hand experience on the web for free.”

When it comes to learning about credit and making sound financial decisions, may consumers find themselves buried in confusing information that doesn’t make sense, or even contradicts information from other sources. “We found that most people had fallen prey to credit repair scams because they were desperate for help,” Clover says. “Credit repair is just better money management education, and education on what affects your credit worthiness.”

According to, no one can completely remove a debt they owe from their credit report. Many people have heard the “100 percent removal” sales pitch from credit repair companies so many times, that they truly believe it. But then they find out it is just a sales pitch designed to get them to register and spend anywhere from $1,000 to $2,000.

The results have been documented all over the Web announcing credit repair companies facing investigation and possible fines by the FTC and the Better Business Bureaus for not delivering what they promised.

So took the liberty to show people what it takes to repair their credit report themselves. As part of their ongoing credit repair education series, has begun posting better credit management education articles in a series of daily blogs. “Our top priority is to show the American people how important it is to mange your credit so you don’t get in financial trouble. If you have found yourself in trouble with your credit, you can repair your credit report through our site absolutely free, with no strings attached,” states Clover.

For additional information on repairing credit, e-mail and they will respond to questions within 24 hours with a post on their company blog. offers a full range of credit tools for consumers who wish to lower their credit risk including personal loan and mortgage applications, free credit reports, credit monitoring and identity theft protection.

Before You Contract With a Credit Repair Company…

Tuesday, July 22nd, 2008

You know that the best plan is to protect your credit and keep your credit score high from the start of your financial life, but perhaps it’s too late for that. Perhaps your credit is already in sad shape, and you’re trying to come up with a good plan to repair it.

You can do it yourself, but you may be thinking that it will be faster and easier if you let an expert do it – an expert such as a Credit Repair Company. You may be right, simply because they know the process. But before you choose one, you should realize that not all such companies are honest. So talk to a few and ask questions before you choose.

The first red flag that should send you running the other direction is a promise to remove all negative information from your credit file. This cannot be done, and anyone who promises to do it is telling an outright lie.

What they, or you, actually can do is remove any inaccurate information found on your credit report. The first step, of course, is to get a copy of that credit report and read it thoroughly. Then each credit reporting company must be contacted with a formal request to re investigate and correct the mistakes.

Another red flag is a request for money up front. The Credit Repair Organizations Act says that Credit Repair Organizations are not allowed to ask you for any money until everything they promised has been done. In other words, they only get paid for results, not promises.

Some unethical Credit Repair Companies will actually advise you not to contact the reporting agencies themselves. This is a scare tactic designed to push you into using their service, and is completely unethical.

Before you begin interviewing Credit Repair Companies, familiarize yourself with the Credit Repair Organizations Act. Until you do, here’s a brief rundown on what those companies must do:

· Provide you with payment terms for their services
· Inform you of all fees and a final total amount due
· Give you a detailed description in writing of everything they plan to do
· Give you a timeline in which the process will be completed
· Provide all guarantees in writing
· Provide their company name and address in the Contract.
· Provide you with a copy of the Consumer Credit file Rights Under State and Federal Law
· Wait 3 days after you have signed a contract before working on your credit – during which time you may cancel the contract, owing nothing.

Before you sign that contract, read it thoroughly and make sure you understand and agree to each of its provisions. Only then should you take the next step.

Can you repair your credit report with credit repair companies?

Thursday, July 17th, 2008

Lately credit repair companies around the country are getting hammered by the FTC and the Better Business Bureau. These companies are claiming that they can increase your credit score and remove collections from your credit report. The funny thing is they charge you up front before any services are rendered. The FTC states that credit repair companies are not suppose to collect money from you until the services have been rendered. This is not what is going on, along with the promises they make to remove stuff that you owe. So the question is what exactly does a credit repair company do? In this article I will discuss the facts and get through all the smoking mirrors that credit repair companies sell.

Can you remove collections?
The answer is you can only remove collections that are not yours by proof and collections that have been on your credit report for more than 7 years. No one can remove a collection on your credit report that you owe, unless it’s been over 7 years. Some collections report longer, but the standard is 7 years.

Can credit repair companies increase your credit score?
Credit repair companies can help you increase your credit score by requesting you do get a secured credit card. Most credit repair companies will require you to do this if you don’t have any good credit reporting. It was not the credit repair company that increased your credit score; it was the new secured credit card that starting reporting on your credit.

Can credit repair companies remove bankruptcies, judgments, and tax liens?
Credit repair companies cannot remove any of this, unless the bankruptcy has expired. Depending on what type of bankruptcy it was, it could be on your credit report up to 10 years. Judgments will stay on your credit report for 7 years from date of entry. Tax liens can remain on your credit report until paid.

By disputing collections you owe, does it remove them?
If you dispute a collection you owe, you are wasting your time. You are to only dispute inaccuracies on your credit report, disputing items you owe does nothing for you.

So the question is what exactly does credit repair companies do? I believe most of them are in business to just take your money. Some of these companies do provide good credit repair education, but if they tell you they can remove stuff you owe, they are lying to you. I have yet to meet someone that has gone to a so called credit repair company and have had success in getting there credit repaired. If you have credit issues on your credit report, you can repair your credit for free. The how to repair your own credit involves money management and the establishment of new credit if you have none. How to do this for free is on the web. You can go to the FTC and also our site blog as well.

Credit Repair Q & A

Tuesday, July 15th, 2008

Thanks Mike! Appreciate your reply. Are you familiar with the types of deals homeowners are making with lenders these days? Our next step will probably be to meet with a local RE attorney, but am curious what you’ve seen in your experience. Oh, and I would prefer to work with a for-profit repair specialist. I’ve read derogatory things about free agencies that actually represent creditors rather than those being counseled. What are your thoughts on that as well?

Appreciate your time!

Sometimes the banks will make a payment plan you can afford. I would call them and find out what your options are. For credit repair, our blog gives FREE credit repair advice. There is not need to pay anyone for credit repair. Being that I am a experience lender and help people all the time, I have put my experience based on FACTS within my Blog. There are all kinds of tips and Faqs on how to repair your credit. Let me know if you have anymore questions.

Mike Clover

Top 10 Credit Report Repair SCAMS – Consumer Beware

Friday, February 29th, 2008

I am sure we have all heard that you can get your credit report repaired if you hire a credit restoration company. They can repair it usually as long as you pay them around $1000.00 bucks to do so. According to the FTC, a credit repair company is not supposed to collect money from you until services are rendered. Hmmmmmmm. Good luck finding someone that will do that. Ok, here are the SCAMS.

1. I will increase your Credit Score 150 points in 30 days.
2. I will remove late payments on your credit report, even though you were actually late.
3. Don’t pay collections it hurts your credit
4. We can remove collections even though you owe the debt
5. We can remove Bankruptcies even though it’s still within 7 years.
6. We can remove a foreclosure, even though it’s still within 7 years.
7. We can remove judgments, even though you owe it.
8. We can remove tax liens even though you owe it.
9. If the balanced reporting is incorrect we can get collection removed
10. If the Bureaus do not respond to a dispute within 30days, they have to remove item in question.

I am sorry folks, but if you have debt you owe, it will be on there for 7 years from original collection date. No one can delete a debt you owe. I promise. Here is a good link for FTC facts on credit report repair SCAMS. Don’t get me wrong, there are credit restoration companies out there that provide disputes for inaccurate information, and are not SCAMS. Typically credit repair companies prey on the desperate, and take advantage of them. So be careful. I would also recommend pulling a current copy of your credit report, and make sure everything on there is accurate. You can actually do everything credit repair companies do for a fee for free yourself. You can go here for quick guide on how to dispute your credit report.

Author: Mike Clover

Credit Repair

Thursday, November 29th, 2007

You may have bad credit due to some irresponsible moves or some unforeseen events in your life. Protecting your credit score could prove to be very important to your future. There are lots of ways to keep your credit good, but if it’s already looking pretty bad, consider some repair options. One way is to go through a credit repair organization.

If you think you should use a credit repair company to fix your credit problems, you should educate yourself first. Credit repair companies can make a lot of promises, but be careful who you give your information to. There is a lot of deception going on in this industry and there are a few signs that you should look out for.

First, if they ask you for any money up front, then it isn’t a legitimate or ethical company. The Credit Repair Organizations Act says that companies aren’t allowed to ask you for any money until everything that they have promised has been completed. So this should be something that you are mindful of.

Secondly, they should always inform you of your legal rights and the steps that you can take yourself to repair your credit. Crazy promises to remove all bad things from your credit should be ignored. No one can do this. You can investigate your credit files to dispute any inaccurate or incomplete information, but you can’t make negative information just vanish. If a credit repair organization tells you not to contact a credit reporting agency yourself, you should probably hang up the phone and do just that. Anything that a credit repair company can do for you, you can actually do for yourself, for free. Research a little online and find out what your rights are under the Fair Credit Reporting Act.

The Credit Repair Organizations Act is in place to protect you. If you decide to go with a credit repair company, then you should familiarize yourself with the basics of this act before you proceed. We’ve mentioned that they can’t charge you until they’ve completed everything that they’ve promised, but you should also know that they must provide you with payment terms for their services. They must inform you of all fees and a final total amount that will be due. They must give you a detailed description in writing of everything that they plan to do. They have to give you a time line in which the process will be completed. Any guarantees must be in writing and included in the contract. The company’s name and address must also be included on the contract.

Before you sign anything, they must provide you with a copy of the Consumer Credit File Rights Under State and Federal Law. They can’t start working on your credit until they have a signed contract in hand and have completed a three day waiting period. Anytime during the waiting period you have the right to change your mind and cancel the contract, owing nothing. Keep your rights in mind throughout the process and educate yourself before you start. Remember, anything they can do for your credit score, you can do yourself for free.

Author: Mike Clover

Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.