Credit Repair: What They Don’t Tell You

Fix your credit.  Repair your credit score.  Delete judgments, bankruptcies, and past due accounts so you can qualify for new credit at favorable terms.

Sound familar?  Those are the stock phrases millions of consumer hear on late-night television from the scammers who are out to get your money.  They promise the moon and stars, then promptly disappear once you;ve paid hundreds - or even thousands - of dollars to them for their “fees.”

The truth is that these companies can’t deliver on their promises.  Most people don’t know that, though, and sign up happily for these services in the hopes that magic will happen.

When negative information in your report is accurate, only the passage of time can assure its removal. A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.  Credit repair companies can’t change the truth.

The Credit Repair Organizations Act governs how credit repair companies operate.  By law, you must be given a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract.

The law contains specific protections for you. For example, a credit repair company cannot:

• make false claims about their services
• charge you until they have completed the promised services
• perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees

Your contract must specify:

• the payment terms for services, including their total cost
• a detailed description of the services to be performed
• how long it will take to achieve the results
• any guarantees they offer
• the company’s name and business address

It’s easy to be victimized and lured in by the promises of perfect credit.  But don’t be a sucker - know your rights!

For more information see the Federal Trade Commission’s Building a Better Credit Report.