Seven Credit Repair Companies Charged By the FTC
I always like to read reports of government crackdowns on unscrupulous businesses. On March 17, the Federal Trade Commission (FTC) announced charges against seven credit repair companies. Not only did the companies deceive consumers by promising to remove legitimately reported information from credit reports, they also accepted advance payment for services, which violates the Credit Repair Organizations Act. The FTC says the companies charged as much as $2,000 for services and required $300 upfront for their "services." The companies may be forced to pay restitution to its customers.
Back in October, the FTC brought charges against a whopping 33 credit repair companies.
These charges serve as a reminder that credit repair companies are often dishonest and seldom produce any results. In the end, you're out of your money and your credit still needs repairing.
Correct me if I'm wrong: I'd love to hear from consumers (not credit repair companies!) who've hired credit repair companies and had positive results. Email me or leave a comment.
Comments
very nice
good they deserve it
I agree, these companies are pretty shady, but I have heard of a new one that is honest, legitimate, and very successful. It’s called Preferred Credit Repair.
they are pretty dishonest, however there is company called pursue,Overtake and Recover Services, that is honest dependable and has helped me when i have went to several other credit repair companies, they also helped me settle a 3500.00 account for 800.00. I had 29 accounts 24 were removed and i paid out in settlements the other 5. it only took 4months, and none of the items have returned its been a year since i used there services..
stop posting scams. thanks
PREFERRED CREDIT REPAIR are a bunch of scam artists. Do yourself a favor and steer clear. Very dishonest.
Like any other business, there are reputable companies and then there are the rip-off artists that give all the others a bad name. If you need the help of a reputable credit repair company check with the Ethical Credit Repair Alliance (ECRA)
Preferred Credit Repair is not only an honest company but goes above and beyond to help its clients. They did more for me in the first two weeks then the previous company I worked with did for me in six months. They also created a personal financial portfolio to help me budget and make sure I never get in the same situation again.
Yes, of course there are some scam artists in the credit repair business. But why is it the whole industry gets a “bad rap” while little is said about the practices of the credit bureaus, who make billions selling credit reports that are filled with errors?
Why doesn’t the FTC go after them? Could it have anything to do with their high-paid lobbyists in Washington? Think about it!
There are many reputable credit repair companies and they perform a badly needed service for consumers. Definitely DO be cautious, do your “homework” and ask for references. But don’t make the mistake of smearing all such companies because of the actions of a few.
Who do you think is more likely to look out for your interests? An honest credit repair professional, or the credit bureaus?
Here’s an excellent blog post on avoiding credit repair scams.
Hi,
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Thanks,
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