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.

Happy New Year!

Well we made it through 2009 and even though things were a ‘bit shaky, the upcoming new year is going to be great!

There are some interesting events coming down the pipe with regards to improve your credit score in 2010.

If you have had issues with negative credit scores in the past then you may want to look into DIY methods to clean bad credit. By improving your credit score in 2010 you can save yourself a significant amount of money. The better your credit score the less you are going to pay in interest over the course of your lifetime. With this being the case it should be your goal to make sure your credit score is as high as it can be.

There are many companies that currently offer credit repair help but it is important to make sure they are government approved. If they are not government approved then it might be a situation where a business wants to make some quick money and run. Many credit repair companies or counselors claim that they can fix your credit instant or they can eliminate your debt. If you see these claims then you will want to look to another credit repair company.

By doing some Google searches you are likely to find many companies that can assist you that are government approved. It also might be a good idea to do some research on improving your credit score without assistance. Something that these credit repair companies have prefected is the inaccuracies on credit reports. If you have purchased a credit report and you notice that there are many mistakes then you will want ot seek a credit repair company.

WIth any major financial decision in your life it is important to weigh your options when it comes to money. If the credit repair company is trying to charge you hundreds of dollars then you might want to pick another company or do reseach on fixing your credit independently. It may take a little more time and effort but it could save you a significant amount in the long run.

I look forward to sharing more with you in 2010!

Mark

Of  all the  questions I receive from my readers,  fast credit repair seems to come up most often. Especially during the current financial crisis we have in this country, folks are realizing more than ever how important credit scores are to your life.

The Web is full of credit repair companies, credit repair attorneys, and credit counselors promising to fix your bad credit quickly. Most, if not all of these companies promise that they can raise your credit score fast by erasing negative information. It all sounds very tempting, and you may toy with using these quick-fix schemes to boost your score. And why wouldn’t you? Bad credit can negatively impact your ability to rent an apartment, buy a home, or even get a job.

However, don’t allow yourself to be lured in. There are no easy fixes. Remember that most of these companies make their money by charging your a monthly fee to repair credit report.

Some of the more unscrupulous credit counselors may recommend that you not speak to the credit bureaus directly, create a new credit identity, or require payment upfront before they provide a service that will never take place. Don’t follow this advice. In fact, if you attempt to craft a new identity you could be on the hook for fraud.

Unfortunately, many consumers were casualties of this types of tactics from credit repair companies. At least 2.1 million consumers fell victim to credit repair scams, according a Federal Trade Commission (FTC) statistical fraud survey.

A reputable credit repair organization gives you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract. You should also receive a written contract that spells out your rights and obligations. The FTC recommends that you read these documents before you sign anything.

Before signing any type of contract , know that a credit repair company can’t do the following:

Before you sign a contract, be sure it specifies:

• The payment terms for services, including the total cost.
• A detailed description of the services the company will perform.
• How long it will take to achieve the result.
• Any guarantees the company offer.
• The company’s name and business address.

If you suspect that you’ve been duped by fake credit counseling the FTC recommends you contact your state law enforcement officials. Contact your local consumer affairs office or your state attorney general (AG). Many AGs have toll-free consumer hotlines — visit  www.naag.org for a list of state attorneys general.

What’s more, you must begin the process of repairing your credit immediately. If you haven’t done so already, obtain a copy of your current credit report and credit scores. If you see that there is inaccurate information on your report, dispute it in writing..

Credit scores are an important part of your financial life and it’s not impossible to improve credit score. However, it won’t be done over night. Don’t fall for scam artists false promises of fixing bad credit fast. Repairing credit takes financial discipline and patience.

Until next time,

Mark