Credit Repair Scams
There are many companies out there that prey on consumers with less than desirable credit. When a consumer is trying to get a loan that will help their family get a home, a car, or a job, and their credit is making it difficult, it may seem like a great idea to work with a company that is promising to repair their credit.
Consumers must be very careful when turning to credit repair companies.
Signs You’re Dealing With a Credit Repair Scam
- If there are promises of a new credit identity, or a fresh start to your credit history
- If payment is requested before any service has been provided
- If the company tries to prevent you from contacting the credit reporting agencies yourself
- If they try to dispute information on your credit report that you know is accurate
- If they tell you to lie on credit applications
- If they don’t explain your legal rights
- If they tell you to use a CPN (a credit profile number or a credit privacy number) or they have you apply for an EIN from the IRS
- An EIN is an employer identification number from the IRS used by businesses. It is a federal crime to get an EIN under false pretenses.
- Credit Repair Scams may also have you change your social security number. Some of them give you a number to use that is a stolen social security number, involving you in identity theft.
Your Credit Repair Rights
Under the Credit Repair Organization Act (CROA), credit repair companies are not allowed to lie about what they can do for you, or charge you before performing services. They must provide you with a written contract that details their services and your rights. You have the right to cancel without charge within three days. They must also provide you with how long it will take, the total cost, and any guarantees.
If a credit repair company violates your rights under the CROA, you have the right to sue them for your losses.
Francis Mailman Soumilas, P.C. Fight Back Against Credit Repair Scams
If your rights under the CROA have been violated by a credit repair company and you have lost money, you have the right to sue for the money you lost.
The consumer protection lawyers at Francis Mailman Soumilas, P.C. are here to fight for you. Fill out the case review form on this page, or call Francis Mailman Soumilas, P.C. today for a free case review 1-877-735-8600.
