Miami FL Bankruptcy Lawyer Warns on Credit Repair Scams
We’ve all seen them, those little paper signs shoved into the ground on spindly, wire legs at highway intersections declaring they’ll fix your credit in 24 hours. They’ll repair any damage you’ve managed to collect on your credit report and you will get a half million dollar loan by the end of the week. Right. And, that’s about as legitimate as it sounds. And, the unbelievability of these sorts of claims is your best tool to avoiding these scams.
Anyone would be tempted if your credit is trashed due to job loss, medical bills, divorce or high credit card debt. But stay clear of these guys and remember the golden rule – they can do nothing for you you cannot do for yourself. No one but you can actually repair your credit. The only true cures for bad credit are time and fixing inaccuracies. Most bad reports will eventually time out, meaning that they appear on your credit report for a set period of time – usually 7 years – and then they disappear. Inaccuracies can be challenged in writing to the reporting credit bureau and if legitimate, will be removed from your report.
Legitimate credit counseling agencies abound, however. Don’t confuse the two. Credit counseling agencies are in the business of advocacy. They will work as a go between between you and your creditors and, hopefully, help you make arrangements to pay down debt in little chunks and with reduced interest and fees. Non-profit agencies are the best, as they don’t usually have an eye on the bottom line. A bankruptcy attorney from Miami will have a list of agencies close to you.
The Better Business Bureau reports that claims against credit repair companies rose 38% in 2004 and have been on a yearly rise since then. So, how do you pick out a scam?
• They want money up front. A lot of it. Never, never pay up front.
• New Social Security Number. Some companies promise their clients new, clean Social Security Number. Don’t believe it. It is nearly impossible to get a new Social Security Number and illegal to have more than one.
• They want you to create an Employer ID. Some of these companies encourage their customers to create an employer ID number with the IRS instead of using their Social Security number to produce a “new” credit record. Don’t do this either. Skirting the issue in this manner will only deepen your trouble.
• Consumer rights. Any reputable company should provide you with a copy of your consumer rights and actions you can take for yourself.
• Dispute all information. Some companies advise their customers to dispute all the information on their credit report. This is fraud and you may be subject to persecution.
• The company recommends you not contact a credit bureau. This is definitely your right and the right way to clean up your credit. A bankruptcy lawyer from Miami can provide you with the addresses and phone numbers of the three major credit agencies.
The National Foundation for Credit Counseling maintains a webpage that offers solid and valuable information on credit counseling (which is different from credit repair, by the way) and advice for those overwhelmed by debt. Through their resources and those of a Miami bankruptcy attorney, you can find a reputable credit counselor close to you to answer further questions.
Related posts:
- Florida Bankruptcy Services Advise on Credit Repair Scams
- Florida Bankruptcy Attorneys Warn on Credit Repair Scams
- FL Bankruptcy Services Advise on Credit Counseling Scams
- Denver Bankruptcy Attorney Warns on Credit Counseling Agencies
- Credit Repair Lawyer: People You Can Trust
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