How to Spot an Illegitimate Credit Repair Service Provider

January 27th, 2013 · No Comments

If you’re planning to sign up for a session with a certified finance expert then, we suggest that you read the reminder of this article. This is because in the paragraphs below, we have enumerated and discussed several tips that can help you identify and avoid illegitimate providers of credit repair services.

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The firm asks for immediate payment. If the first agency you approached asked you to make a down payment for the services you intend to sign up for then, we advise you to get out of that firm, right away. Why? This is because the federal law states that no credit counseling agency can collect payment unless the agreed-upon services have been rendered. So, the outright collection of a service charge is a direct violation of the federal law. And you have the right to file a formal complaint against the firm with the Office of the Attorney General in your state.

The agency does not have permits or licenses issued by the federal, state, or local government. When scouting for credible and legitimate credit counseling firms, we suggest that you conduct an investigation on the government-issued permits and licenses that each firm holds on to. After all, these documents will tell you if the firm adheres to the strict rules that govern and regulate the provision of credit repair and counseling services in the market.

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Suppose you discover that the firm is yet to secure accreditation from the federal or state government. Would it be wise for you to work with its finance experts? Of course not! After all, there’s a huge possibility that the employees of the firm are not certified to provide the information you need to solve your credit problems.

The firm does not promote the qualifications of its finance experts. One of the hooks used by most credit repair service providers these days are the credentials of their counselors. Most of them employ the experience and qualifications of their counselors to convince their prospective clients to try out the services or programs they offer.

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Now, if the firm you approached cannot vouch for the experience and knowledge of its personnel then, it’s an indication that their employees are not certified to provide professional assistance. Hence, you might not get your money’s worth if you will sign up for one of the programs it offers.

The agency offers bogus guarantees. Watch out for firms that provide promises they cannot keep. For instance, you should stay away from credit counseling firms that guarantee the quick removal or deletion of your unpaid debts from your annual credit report. Keep in mind that such accounts can only be removed from your credit file if you can settle them completely or when they have been charged off and sold to a debt collection agency.

So, try to gather as much information as you can about the reasonable and acceptable promises or guarantees you can expect from a credit repair service provider. After all, such information can boost your likelihood of finding not just an excellent credit repair program but also a reliable service provider.

About the Author

Alexandra “Alex” E. Smith is a certified finance expert and one of the featured writers of Bad Credit Credit Card Site – a website that caters to questions about bad credit cards, loans, and credit repair services. To learn more about these topics, we encourage you to visit their site today!


Tags: annual credit report · Articles · bad credit · credit · Credit Repair · credit repair services · debt · finance experts · Personal Finance

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