Credit Repair | The Scam
With the full onset of the credit crunch beginning to be felt by everyone, it is no surprise that people who have acquired large amounts of debt through the boom years are finding it increasingly difficult to keep on top of their finances. More and more people are having difficulty making their regular debt and interest payments and with rising unemployment it is not difficult to foresee these problems getting worse before they get better.
With such an increase in debt default and other financial difficulties being encountered, it is perhaps not surprising that folk defaulting are looking to various credit repair programs to return them to some semblance of order in their financial affairs. Credit repair, if one’s credit is in need of repair is to be recommended and encouraged. However, it is a sad reality that difficult times such as we are currently facing prove fertile ground for those who are prepared to operate on the fringe of legality. I am talking really about companies and individuals looking to capitalize on people’s credit issues and who in the short, medium and long term can make their situation even worse.
If you do not yet know what to what I am referring I am referring to companies who make remarkable claims, on the web, or by email suggesting their ability to dramatically improve your credit rating knows almost no bounds. Almost all of their claims will turn out to be untrue, but if you are worried you won’t be able to spot the fraudulent companies from the legitimate ones there are usually several matters to which you should be on the alert. It’s really not as hard as you may think to spot them.
Have you ever heard the phrase – if it looks too good to be true, it probably is? This should be your guiding light. Does it seem to you that the offer of help implied in the message you are reading would be the answer to your prayers in one fell swoop. If so then the claim is almost certainly false. Whilst it is true that some matters on your credit report can be fixed, generally speaking problems on credit reports cannot be sorted overnight, CCJ’s which are outstanding cannot easily be wiped clean, and the truth is really that credit repair, whilst not complex can often take months if not years to conclude.
How does the advert read? Is it very salesy – does it bombard you with apparently overwhelming claims of the veracity of their claims. In short, is it spam? Does the email address, if provided look as though it comes from a legitimate business, or does it look like a web-mail account? If there is a website, what is its address? Is there a proper contact page, together with a bricks and mortar address? If you are not happy with the answer to any of these questions then you may well be looking at the credit repair scam.
Finally, under no circumstances should you agree to pay the company a fee in advance, nor, if they seem to be offering a debt consolidation package. Especially don’t be taken in by the request for sending a fee for some sort of initial work or report. If you are tempted, why not seek independent advice before sending off the money? It is not unlikely you will not see your money again if you do pay up and attempts to get hold of the fraudsters may prove time consuming and frustrating and ultimately lead to failure. Certainly don’t take up any offer of a debt consolidation process without first understanding the full implications of the loan repayments, the loan interest rate and the action that may be taken on default. You would not want to be in worse financial difficulties than before you started due to a debt consolidation loan that was distinctly unsuitable and unfavorable to your particular circumstances.
There is some good news if you do indeed find yourself in need of credit repair. You can actually undertake much of the process yourself. It is not particularly expensive, the steps you have to undertake are not particularly difficult and with diligence, patience and discipline you can make some real progress in improving your overall credit position.
