Avoiding Credit Repair Fraud

When it comes to credit repair if it seems too good to be true it probably is
Avoiding Credit Repair Fraud
Offers to help your credit

When it comes to repairing your car credit, a problem credit auto loan is usually the only choice. You can ignore many of the advertisements you see in the newspapers, on television and on the internet. But don’t just take our word for it, how about that of the FTC?

The fact is, we’ve come across these offers hundreds of times here at Auto Credit Express where for over the twenty years we’ve helped applicants with bad credit find a dealer that understands these credit situations. Our website even contains information on topics such as used car inspections and bankruptcy as well as today’s topic, avoiding credit fraudsters.

Credit repair offers

“Credit problems? No problem!”
“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

We know you’ve seen these and more advertisements that offer to repair credit quickly. Here is what the Federal Trade Commission has to say:

Every day, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

•    The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
•    The company doesn’t tell you your rights and what you can do for yourself for free.
•    The company recommends that you do not contact any of the three major national credit reporting companies directly.
•    The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
•    The company suggests that you try to invent 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.
•    The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

How this can affect you

There is also another point to consider and that is how contracting with one of these credit repair agencies could get you into trouble if you follow the wrong advice.

According to the FTC, “If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.”

The Bottom Line

Beware of credit repair companies that make promises that seem too good to be true. In the end, chances are this is the case.

And one more thing: here at Auto Credit Express all we can promise is that if you are credit-challenged, we’ll help you locate a dealer for your best chance at an auto loan approval.

So if you really want to get your auto credit on track, you can begin now by filling out our online auto loans application.

Posted on April 27, 2012 by in Auto Loans, Bad Credit, Credit Repair
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