I recently read another article about credit repair companies scamming consumers. Remember, there is nothing one of these firms can do for you that you can’t do yourself…cheaper, better, and faster!

Improve your credit score can be done in short order if you follow proven principles.

Here is the full article -

Jefferson City, Mo. – Attorney General Chris Koster said today difficult economic times have created profitable opportunities for credit repair scam artists.

Koster said credit repair scammers target consumers with credit problems and charge big up-front fees with the promise to clean up their credit file.  He reminded consumers that it is against the law in Missouri to require payment before these types of services have been provided.

“The fact is, no one can clean up your credit report if it’s accurate,” Koster said.  “Companies that tell you they have an ‘in’ with credit bureaus, know about secret loopholes, can convince a creditor that you don’t owe a debt, or can get you a new, clean credit report are simply being untruthful.  If there are genuine errors on your credit report, you can get those removed yourself at no cost.”

Koster said he is filing a lawsuit today against Credit Repair and Counseling Specialists, LLC, and Brenda Lynne Coday in Springfield, charging fraud, deception and failure to comply with statutory requirements placed on firms offering credit repair services.  According to the lawsuit, the business did not perform all the services for customers it promised, and did not provide refunds for services not provided.

Koster is asking the court to issue a permanent injunction requiring Credit Repair and Counseling Specialists and Coday to comply with the law; require the defendant to provide full restitution to victims; pay a civil penalty of $1,000 per violation; pay the state 10 percent of the total restitution; and pay the cost of investigative and prosecution fees.

The credit repair industry is booming right now during this economic and credit crisis.  Banks have tightened  their lending requirements for consumers and have just recently started to lend to small businesses again.

What used to be an “amazing credit score” in the past 720 or higher, is now just considered “good” with the banks. There are millions of people who do not qualify for loans because their credit scores are below what they actually need to qualify for even the most simple of loans. And that’s the reason why thousands of people are looking for credit repair services for help.

Hoping to earn good profits on the present trend, new credit repair services are mushrooming every day claiming to be the best in the market at fixing credit reports. With so many such inexperienced credit repair service companies coming out onto the scene, it really becomes tough to filter out the most trusted company out of it. In order to make the process easier for you to separate the reliable credit repair services from the inexperienced one — here are some few important tips, which might help you spot the best credit repair service company:

Experience counts: Setting up a credit repair company is not a tough task. The basic requirements include a website, and a few hundred dollars to purchase and install a software. However, running a business successfully and delivering good results for consumers is really a tough task. Experienced credit repair service companies maintain previous records that indicate their credibility in the market. So, check out the company history first and then move forward.

Look for the company infrastructure: In today’s Internet world, virtual companies are many. However, credit repair service is something, which is more effective offline. Reputed credit repair companies possess a physical building also – you can use it as a guide to measure the company status. If a company has a physical presence, you can definitely visit there and communicate with them effectively.

Look at the service cost and payment options: Most of the reputed companies abide themselves by the payment rule, which says that companies can ask for the their service cost only after they have performed the task i.e. credit repair. However, there are many companies who ask for upfront payment, which is absolutely wrong. In addition, you must check out the payment options. Generally, companies prefer credit card payment option on their website or over the phone.

Keep the above points in your mind and select the best credit repair service to improve your credit score so that you could be eligible for availing loans.

Or…you could learn how to improve credit scores yourself by going to www.CrushingTheCreditBureaus.com and get started on repairing your own credit faster and cheaper than working with a credit repair service.

Your Credit Score Insider,

Mark

Great article straight from the FTC  Website.

Remember folks…there is nothing a credit repair firm can do you for you that you can’t do for yourself…often quicker and cheaper!

Click Here For Full Story:

A credit repair company that falsely claimed it would help boost consumers’ credit ratings will settle Federal Trade Commission charges filed last year as part of “Operation Clean Sweep,” a federal-state crackdown on credit repair scams.

The FTC charged the Chicago-based defendants with falsely promising to remove negative information from consumers’ credit reports, even if it was accurate and current, in violation of the FTC Act and the Credit Repair Organizations Act. They also allegedly violated federal law by requiring payment before any service was provided to consumers. According to the FTC’s complaint, the defendants’ advertising stated, “We would never charge a large fee up front, or make you wait a long period of time to refund your money if we do not get results. You WILL see results in 60 days, or your money will be refunded in full . . . .” They charged $495 per person and $665 for a couple and required $219 or $269, respectively, in advance.

The settlement order bars the defendants from further violations and from misrepresenting:

• They can improve consumers’ credit reports by permanently removing negative information, even when it’s accurate and current;
• They can otherwise improve a consumer’s credit report or ability to obtain credit;
• The full cost of their services and any restrictions on consumers’ use of those services;
• Their refund or cancellation policy; or
• The benefits of using their goods or services.

The order imposes a $226,793.90 judgment that will be suspended once they pay $20,000. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition. The order prohibits the defendants from collecting any payments from consumers who purchased their services before October 23, 2008, when the court halted their business practices and froze their assets. The order further bars them from
disclosing or benefitting from customer information, and failing to properly dispose of customer
information.

The defendants are Advantage Credit Repair LLC and Mark D. Solomon. The Commission vote to authorize staff to file the stipulated final order was 4-0. The proposed order was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division.

The Commission appreciates the assistance of the Better Business Bureau of Chicago & Northern Illinois in this case.

The FTC offers consumer information, “Credit Repair: How to Help Yourself,” athttp://ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm, and advises that only time, a conscious effort, and a personal debt repayment plan can improve a credit report. The first step is to learn what information is in the credit report. If there are errors or mistakes, federal law provides the right to have them corrected – free of charge. Federal law requires that the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – provide consumers with a free copy of their credit report once every 12 months, if requested. To order your free report, consumers can visit annualcreditreport.com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form.