Credit Repair Scams

You’ve probably seen plenty of advertisements about credit repair services. These organizations often make claims such as:

  • Credit problems? No problem!
  • We will remove bankruptcies, bad loans, and judgments from your credit report forever!
  • We will create a new credit identity, legally.
  • We will erase your bad debt guaranteed!

The problem? You should not believe any of these statements. The truth is, only time and hard work will improve your credit, and there is no quick fix. Many of these companies will use shady and sometimes illegal tactics and charge you a fortune for the service.

If you have inaccurate information in your credit report, it’s usually best to hire a credit repair lawyer to resolve the manner effectively and completely legally.

What a Credit Repair Scam Looks Like

Companies across the United States appeal to consumers with bad credit. You may see ads or even get telemarketing calls from companies who will claim, for a fee, they will clear up your credit report so you can get a mortgage, insurance, and new credit.

Unfortunately, this is something they cannot deliver. After you have paid hundreds or even thousands in fees, they will not do anything to improve your credit score and may even hurt it, leaving you out of the money and in no better situation.

Warning Signs

While not all credit repair companies are necessarily a scam, stay away from any company that:

  • Requires you pay a fee upfront for credit repair services,
  • Does not tell you your legal rights and what you can do on your own at no cost,
  • Tells you not to contact credit bureaus yourself,
  • Tells you to apply for an Employer Identification Number to use instead of your Social Security number to create a “new” file,
  • Suggests you dispute all negative information on your credit report, or
  • Tells you to do anything that seems illegal. Remember, following illegal advice means that you will be committing fraud, and you will be subject to prosecution!

What You Need to Know

No one can legally get rid of accurate and timely negative information on your credit report. You are, however, allowed under law to request an investigation of information in your credit report that you dispute as inaccurate. This can be done for free.

There is nothing a credit repair company can do for you that you cannot do yourself for free or at very little cost. Credit repair companies are also prohibited by the Credit Repair Organizations Act from requiring any payment until they have completed the services they have promised.

According to the Fair Credit Reporting Act, you are entitled to one free copy of your credit report if you have been denied employment, credit, or insurance in the last 60 days, as well as one free copy every 12 months from TransUnion, Experian, and Equifax.

You have the legal right to dispute outdated or erroneous items at no charge. You may ask the credit bureau for their dispute form, submit your dispute in writing, or complete an online dispute. Doing so requests an investigation into the information.

The credit bureau is required by law to give you the written results of the investigation when it is complete, and a free copy of your report if your dispute causes a change. If an item is removed or changed, the credit bureau cannot put the disputed information back on your credit report unless the provider of the information verifies it is correct.

How Long Negative Information can be Reported

Accurate negative information can usually be reported on your credit file for seven years. There are exceptions to this rule:

  • Bankruptcies may be reported for 7-10 years.
  • Information reported due to an application for a job with a salary over $75,000 has no limit.
  • Information reported due to an application for over $150,000 worth of credit or life insurance has no limit.
  • Information about a lawsuit or judgment can be reported for 7 years or until the statute of limitations expires, whichever is longer.
  • Default information for government-insured loans or guaranteed student loans can be reported for 7 years after specific guarantor action.

How the Credit Repair Organizations Act Protects You

This law requires certain actions from credit repair organizations and grants you many rights. Under the law, credit repair organizations must provide you with a copy of the Consumer Credit File Rights Under State and Federal Law before you sign any contract. You must also be given a written contract describing your obligations and rights.

A credit repair organization cannot:

  • Make false claims about the services they provide,
  • Charge you until promised services are complete, or
  • Perform any services until you have signed a written contract and completed a 3-day wait period. During this period, you may cancel your contract without paying.

The contract you sign must include:

  • The payment terms and total cost
  • An in-depth description of the services that will be performed
  • How long it will take to achieve the promised results
  • Any guarantee on the services
  • The company name and address

What to Do If You Are a Victim

Most states have laws governing credit repair companies, and these laws may help you if you have been taken advantage of by a credit repair scam.

If you have had problems with a credit repair company, contact us right away for help.

Complaints - Credit Repair Scams

  1. Mary

    I consigned loans for my exhusbands children. The boys are now 27 and 30 years old.Navient has called me on average 10 times a day both at home and on my cell. They have reported 30 day delinquency notices to the credit company more than once. I paid the delinquent amount, they haven’t applied it to the account, I have confirmation from my bank. They are harassing me. Thank You for your help!

  2. Visitor

    Who is contract caller inc in Augusta ga There was report on my credit from them I saw you had contract caller inc on the web with your firm as contact for complaints re CCI I am correct there various complaints on cci!

  3. Greg

    Hi Michelle, please bear with me. I live in RI but i have an issue with someone regarding an agreement we had. A lot of info sorry. I’ll try to be blunt lol. I purchased PIF two toy collectibles back in 2014 from this customizers. during that time a family member was ill. i received one of the customs back in oct 2014. i wasn’t in the right state of mind and didn’t like the figure. i returned it to him and said to cancel the other one. i spoke with my wife who said since you spent $420-430 on both figures you can’t do this. i contacted him in nov 2014 asking to forgive me and do the 2nd custom. east providence there’s more to my story. he said that i might be scamming him but i had no intention. i pif for the customs. he said not to contact him but he will. i waited till jan 2016. i emailed him in jan 2016 asking him if he doesn he has been making customs posting them on a site and selling a few on ebay. i know my actions in 2014 were wrong even though my personal situation but i am a customer and he did agree an apologized before. but this has been going on too long. why would he be making other customs with in that time frame and forget or refuse to do the one i PIF? michelle i went on websites asking questions, been received some tough comments but i have no knowledge of this. i was thinking a demand letter from a lawyer!

  4. Hanson

    I am a client of DCSD & that’ how I know of Agruss Law Firm. I rent my home & am having issues with the property owner. I think I may have to pursue this matter legally to resolve the issue. Can you give me a referral to a local attorney who handles tenant/landlord issues? I live in San Antonio TX. Thank you Catherine Hanson DCSD #10605. Very briefly, it is about repair issues. Repairs that were not completed & in working order even prior to my occupancy of the residence Oct 2013. I have made many requests in writing to have this done. 2 of my requests for repair have to do with exterior security lights & in home security system. If someone at this law firm cannot assist , I would like a local referral please. My present lease is due to expire 9/30/2014. TKS Cathy Hanson!

  5. William

    see how I can start this..basically I’ve been receiving prank calls over the past week or so… no vm ever left, finally took the time to call back, got a company that called themselves Encore Financial… they refused to give me any more information about their company without me first confirming my name…I felt like something was wrong. I pushed for more info they pushed back saying no..until I confirmed my name…so the call ended and I looked them up. turns out it’s an insurance company in MI..I wait the weekend and contact them. they have no idea who I am and confirm that in fact I was contacted by Encore Collections and that this is by far not the first time they’ve had this issue. there is more to this but that should at least get you started. I’m just confused on what to do. I guess I’m in collections but I’m not sure about giving information to a number that prank called me and then misrepresented their company. that would actually be wonderful. I’m just ya know scared to get scammed and this seems far from legit the way they’ve been going about this!

  6. David

    I would like to know what forms of payment you accept in settling debt. my matter was taken to your firm for collection but am currently away from the country on business so I would like to know if you accept debit authorization if I were to make payment!

  7. Jannie

    I have been on the do not call list since March 2013. Have several dozen robocalls from DONATE YOUR CAR. Have recordings and call logs. Tried opting out by pressing #9…hasn’t stopped calls. calls direct you to (soscars.org). I went one step further and looked up the website registry. This site is owned by someone named Travis Peterson who has a bunch of these types of sites cited as “charities.” Sometimes the calls use the name Act of Valor, also registered to Peterson. I have 7 voicemails saved and a formal call log coming in the mail from Comcast. will show repeated calls since I joined the DNC list!

  8. Karol

    I received an email from Melissa yesterday and she said she might be able to help me. What exactly does your office handle. Are you not a settlement lawyer!

  9. Visitor

    Here is the phone number that continually harasses me. 866-285-2186. I have already informed my credit card companies of my situation. Continual calls. No one on the other line answers, if I just pick up the phone. i am back in school to start a new job, and pick my life up again afte losing my home in the housing crisis. I explained that to the credit card companies. I have no other debt!

  10. Oliver

    Hi I’m not sure if diversified has called me…I’ve gotten so much collection mail and phone calls and emails over the years…how can I find out if I had been targeted by them, if I no longer have the mail or emails. Like unless u can disclose what corporate business use diversified and we can narrow it down. Like I’ve had car loan, house rent, credit cards, personal loans, department store card, bank account closed cause negative balance… All those are/have/used to be in collection!

  11. Ted

    Hello, I just discovered that a law firm handling a debt that I was planning to pay next week has been able to restrict my bank account. I owe Capitol One about $1300 and last September I was going to pay them but when I went to check how to get a hold of them I could not find the debt anymore and when I inquired it said the debt was settleed. About that time they were filing a judgment in the circuit court and I just forund out a bout it a few weeks ago by stumbling across it and now they have a lien on my bank account and I cannot access my money!

  12. Michael

    I’m looking to retrieve info regarding a debt I have with your organization. I will assume as much. I have received a telephone call from: (866) 613-2093, I believe this in regard to a credit card bill!

  13. Danny

    I received a letter from the portfolio recovery and I’m being sued by them. what can I do? will I lost job rendering me unable to fulfill my credit card obligation, that i had now it was sold to this recovery organization!

  14. Richard

    Hi, just looking about cases against Red Rock notice your site. Received summons from FirstService, Red Rock parent company, my HOA, about to default on it. Have received numerous letters from Red Rock requesting payment, but refused to pay it. Contacted a local lawyer to negotiate, but they never contacted him!

  15. Jack

    Does your firm engage in ” class action lawsuits ” ? If the answer is no , please have mr Agruss give me a referral — thanks!

  16. Joseph

    i’m being harrassed and frauded from greentree morgage. they gave me 30 days before they take my house from me and my wife and kids. I dont own any money and they send people to my house scaring my kids . i recently got into a car accident trying to get home because they sent a messenger to my house to serve me with papers. i dont no what to do.now they telling me i owe their lawyers fee or they are going to take my house, my morgage is 415.00 a month. They charging me 506 a month. They say the balance is insurance for home . We already pays for gieco .They balance of the loan is the same for the past 5 years. We pay 500.00 a month. So where is all they money going? Nothings going to the princible of they house. Plus they trying to get more money from me to pay there lawyer. I’m disabled with a fixed income. I no longer have a phone because of all the harrassement that my familys been going thru!

  17. Ralph

    im being harassed at work with a pay day loan company. I gave them my account details because they were threatening me at work l repaid their loan in 2013, they called today several times for a loan in 2013 l paid, they said we have summons for you whats your address all soughts we want to talk to your supervisor!

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