Credit Repair Services

Many consumers are seeking assistance with unmanageable debt, and often turn to credit counseling or credit repair services to help; especially with credit card debt. Members should be aware of the basic questions to ask in order to determine whether a credit repair service is reputable. There are many good companies that offer these services, but there are an increasing number of companies that are using dishonest tactics to lure debtors into believing that they can repair their credit or even erase their past credit history.

The Better Business Bureau reports that complaints about credit repair companies have risen for the past three years. Many companies advertise that they will erase bad credit records for large upfront fees, but in truth, accurate negative credit information cannot legally be removed from an individual's credit report.

By law, credit repair companies must provide a copy of the "Consumer Credit File Rights Under State and Federal Law". One of the main points is that consumers have the right to cancel a contract with a credit repair company within three business days from the date the contract

was signed.

The Better Business Bureau advises consumers to read the rights thoroughly before signing any contracts. They also caution consumers to be aware of companies that do the following :

• Do not tell you your legal rights and what you can do, legally, for free.
• Recommend that you not contact a credit bureau directly.
• Want you to pay for credit repair services before any services are provided.
• Advise you to dispute all information in your credit report.
• Take any action that seems illegal, such as creating a new credit identity by obtaining a federal employer identification number to use instead of a social security number.

Consumers can check out any credit repair service with the Better Business Bureau by accessing

BBB Reliability reports free of charge at www.bbb.org.

If you unfortunately run into one of those dishonest credit repair companies, the Better Business Bureau's phone number is: 1-800-552-4631.

Consumers with serious credit problems can contact Consumer Credit Counseling Services

(CCCS). To find their nearest office, call 800-388-2227 or go to www.nfcc.org.

HOW TO OBTAIN A FREE CREDIT REPORT:

www.annualcreditreport.com

(877) 322-8228

www.ftc.gov/bcp/conline/pubs/credit/freereports.pdf