Four Tips for Identifying a Legitimate Credit Repair Company

The Federal Trade Commission enforces consumer protection law and has the responsibility of protecting consumers from unscrupulous companies that steal our business through false claims, illegal services, and improper disclosure. With regards to dishonest credit repair clinics, practices like these became so pervasive that a federal law was passed to clearly outline how credit repair companies can operate. The Credit Repair Organization Act (CROA) was passed to protect consumers and provide them with recourse if they are a victim of a dishonest credit repair company.

When researching credit repair services, there are some key indicators that should alert you to stay clear. According to the Federal Trade Commission, avoid credit repair organizations that:

Require Payment in Advance - Credit repair providers shouldn't request payment they have worked on your case. Under the CROA, these credit repair companies cannot require payment until they have completed the services promised.

Do Not Disclose Your Consumer Rights - Trustworthy credit repair firms will inform you that you can order one free copy of your credit reports each year from each of the credit bureaus, and that you can dispute inaccurate or questionable items on your own. If you are not alerted to this information, specifically in the form of a CROA required written disclosure titled "Consumer Credit File Rights Under State and Federal Law", take your business elsewhere.

Endorse Creating a New Identity - Some shady credit repair clinics will advise you to create a new credit identity by creating and using an Employer Identification Number (EIN) in place of your Social Security number on credit applications. This is a serious crime and if any credit repair company suggests this as an option, run the other way.

Misrepresent the Services They Provide - Beware of credit repair providers that promise to remove negative and accurate items, such as repossessions and foreclosures, from your credit reports. No one can guarantee that items will be removed, especially if the items are true.

By: Stuart Hunter

Article Source: http://www.directorys.uniquearticles.info

Serving clients for over 18 years, Lexington Law prides itself on operating in strict compliance with the laws governing credit repair companies. Lexington Law's credit repair services have assisted clients with the removal of millions of negative items including late payments, collections, charge offs, and bankruptcies.

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