BBB News: Even debt generates scams
Dear BBB: “A friend of mine who is notorious for her bad credit says she bought a new and better credit report from a company she saw online. Is this legal?”
BBB: Everyday, companies nationwide continue to appeal to consumers with poor credit histories. For a fee, they promise to clean up your credit report so you can obtain a car loan, a home mortgage, or even get a job.
Unfortunately, many of these companies can’t deliver. Many of them simply vanish with the hundreds or thousands of dollars they request in fees. Even worse, some companies sell the victims illegal credit reports.
There has been a proliferation of area consumers in recent weeks who have contacted our office to check out “legal credit repair” offers. As there are an exorbitant number of bankruptcies declared in our community, it is not surprising so many are targeted with these offers.
The Murfreesboro-area branch of the BBB recently received an e-mail that was forwarded from a consumer. It blatantly offers to rig up a complete new credit history for those who are in need of one. Here is an excerpt:
“To guarantee you will quickly have EXCELLENT CREDIT, we will assist you in instantly adding UNLIMITED positive information to your credit file. This is an unknown way of adding real accounts to your new credit file to give you an excellent credit rating in less than 30 days. As you know, the more positive information on your credit file, the more money banks will lend you. Countless clients of ours have credit lines over $100,000 because of our proven credit advantage program.”
The truth is, no one can legally remove accurate and timely negative information from a credit report – or add inaccurate, positive information.
The law does allow you to request a reinvestigation of your credit file if you feel there is incorrect information in it. There is no charge for this.
Everything a credit-repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act, you are entitled to a free copy of your credit report if you’ve been denied credit within the last 30 days. You can also dispute the report in writing, along with any supporting documentation.
If you decide to respond to a credit repair offer, the Better Business Bureau suggests you beware of companies that:
• Do not tell you your legal rights and what you can do legally for free.
• Recommend you not contact a credit bureau directly.
• Want you to pay for credit repair services before any services are provided.
If you would like more information, contact your Better Business Bureau at (615) 867-0032 during regular office hours, or at (615) 242-4222 on our 24-hour information line, or toll free at (800) 989-4222. Visit our web site at www.middletennessee.bbb.org for more information.