There Are Legitimate Consumer Credit Repair Services
There Are Legitimate Consumer Credit Repair Services
There is a lot in the news about scams of all sorts, including those claiming to be "consumer credit repair services". There have even been several federal laws made to address these scams. So, are there any legitimate consumer credit repair services out there in the real and virtual worlds? If you look for long-term solutions and keep your commonsense cap on, yes.
You Have To Find Them
If you get a telephone solicitation or spam email extolling the virtues of a consumer credit repair service, either hang up or hit "DELETE". You have to find them, not the other way around. Sure, there are legitimate ads online, in magazines and newspapers, but never from spam or a telemarketer. But you can also find legitimate consumer credit repair services from you bank, credit card company, the Federal Trade Commission's website and even from the bankruptcy court in your jurisdiction. There are an awful lot of them, because there are an awful lot of people in the same boat as you!
Feel No Shame
There is no scarlet letter you have to wear informing the law-abiding citizenry that you don't know how to handle money. No one is born knowing how to handle money. And there are also circumstances such as natural disasters, sudden catastrophic health conditions or sudden catastrophic dips in the stock market that can make anyone consider bankruptcy. It is perfectly okay to contact a consumer credit repair service even if you are not thinking of bankruptcy, but can't seem to figure out how to make ends meet.
Know Your Rights
Never pay any fees up front to any consumer credit repair service before they've done any work for you. That's illegal. They also have to give you a contract and spell out all of their services in writing before you pay anything. They also have to let you know up front what services you can do yourself for free. And, you should never have to pay more than $100 for a money management course.
Other things a consumer credit repair service cannot legally do is create a second credit profile for you; create a new credit identity for you; falsify any information; erase any portion of your credit report; or ask for donations. Also remember that most of the work will still be up to you to manage your money better, but a consumer credit repair service can help you on the way.