Beware of Credit Repair Scams

Credit Repair Scams

If you’re on the verge of filing for bankruptcy, you may be looking for any kind of quick fix that can get you out of the confusing and scary situation you’re currently in. But although you may be feeling overwhelmed, don’t allow yourself to fall victim to the many scams that are out there.


Unfortunately, too many individuals put faith in the credit repair scams they see online, in the mail, or on social media pages. They promise to erase your bad credit score and replace it with an entirely new number. For a fee, you’ll be on track to getting your credit back in your hands.


These credit repair businesses seem too good to be true because they are. The fee you pay will go directly into the pockets of the scam artists, and you’ll be left with your same credit score and even less money.


How to Tell if It is a Scam

One of the biggest signs of a scam is that it makes claims that are not possible for them to complete. Unfortunately, there is no quick fix for a bad credit score and only working hard to improve your credit over several years can increase the score.


These scams will also encourage you to do illegal behavior, such as applying for an Employer Identification Number and lying on your loan or credit applications. They may also require payment before even discussing their services with you or recommend you not to speak with the credit bureau if it isn’t through their company.


Stay Protected from Credit Repair Scams

Thanks to the Credit Repair Organizations Act (CROA), credit repair companies need to follow a set number of processes to stay in good standing. This includes providing you with a contract that details exactly the services they will provide, any guarantees they are making you, and the length of time before you should begin seeing results.


The CROA also says that the individual is not required to pay the company until the promised services have been fulfilled. This ensures that you do not simply spend your money on a company’s fee never to hear from them again.


It is also important to remember that there is nothing a credit repair company can do for you that you are not able to do for yourself free of cost.


If you have more questions about filing for bankruptcy or improving your credit score, contact the Brooklyn office of Michael F. Kanzer & Associates, P.C. Our expert bankruptcy attorneys have helped hundreds of individuals with their debts by providing expert protection against Chapter 7, Chapter 11, Chapter 12, and Chapter 13 bankruptcy.


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