Be Aware Of Credit Repair!
Credit repair companies are springing up all over the country and on the Internet as more and more consumers are suffering from bad credit scores. Many people think that hiring one of these companies will improve their score and take otherwise valid items reported off of their record. In our ongoing effort to help you with life after bankruptcy, I wanted to give you a heads up on a recent FTC investigation into credit repair organizations.
Recently, the FTC (Federal Trade Commission) announced that, in conjunction with several state authorities, they were launching "Operation Cleansweep" to go after more than 30 credit repair companies for unethical business practices. In their report, the FTC provides some tips for consumers to avoid getting ripped off by these companies looking to make a quick buck. Here are a few of their suggestions:
- Avoid any company that wants you to pay for credit repair services before they provide any services. It is against the law.
- Avoid any credit repair company that will not tell you your legal rights and what you can do, yourself, for free.
- Avoid any credit repair company that tells you not to contact a credit reporting company directly.
- Avoid any credit repair company that advises you to dispute all of the information in your credit report.
- Avoid any company that suggests creating a 'new' credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number. That is against the law. If you follow illegal advice and commit fraud, you also may be subject to prosecution.
Bottom line, if you have negative, but accurate information reported on your credit report, you really have no legal right to take it off. Anyone telling you that you do is misleading you. Under federal law, accurate information remains on your credit report for 7-10 years.
You can find out more about this subject by taking a look at a story recently done on CNBC titled "Credit Repair" Companies -- Declined!.
The St. Louis bankruptcy attorneys at Castle Law Office provide legal assistance for those who are going through severe financial difficulties. Filing for chapter 7 bankruptcy or chapter 13 bankruptcy is a way to move past crippling debt and to get on with your life. If you or a loved one in the St. Louis, Missouri and Illinois area are considering filing for bankruptcy, contact Castle Law Office for a free legal consultation today. We can offer help and a fresh start to citizens in St. Louis County, Jefferson County, St. Charles County, East St. Louis, Franklin County, St. Clair County, Boone County, and the entire state of Missouri, as well as Belleville, Granite City, Fairview Heights, O'Fallon and Alton. We help to stop foreclosure, repossession and wage garnishments. All of our attorneys are licensed as Missouri bankruptcy attorneys and Illinois bankruptcy lawyers.
