How To Spot Credit Repair Scams
Below is a MRR and PLR article in category Finance -> subcategory Credit.
How to Identify Credit Repair Scams
Summary:
Recognizing credit repair scams is becoming increasingly challenging.
Here's a guide to help you spot potential scams and protect yourself:
Research the Company:
Before engaging with a credit repair company, contact the Attorney General’s Consumer Protection Hotline at 800-392-8222 to check for any complaints.
Beware of False Promises:
Stay away from companies claiming they can alter or erase accurate information from your credit report. No company can legally do this.
Avoid Upfront Fees:
Be cautious if a company demands a large fee before delivering services. A money-back guarantee often doesn’t safeguard you from a dishonest company.
New Credit Identities:
If you've filed for bankruptcy, beware of schemes offering a "new credit identity" through file segregation. This practice is illegal and can lead to fines or imprisonment.
Other Scams to Watch For:
- Credit by Phone:
Be skeptical of pay-per-call services offering guaranteed credit or loans. Often, callers receive only lists of banks or general guides, along with hefty phone charges.
- Gold or Platinum Cards:
Promotions for these cards might sound appealing, but they often only allow purchases from specific catalogs, not universal credit access. Watch out for hidden phone charges tied to these offers.
- Checking-Account Scam:
Be cautious of postcards promising easy credit. These often prompt you to share your checking-account number, which can be misused for unauthorized payments.
Take Action:
If you suspect a scam, report it to the Attorney General’s Office online or by calling the Consumer Protection Hotline at 1-800-392-8222.
Protect Your Information:
Never share your bank account or credit card details unless you're sure the company is trustworthy. Stay informed and vigilant to protect your financial well-being.
You can find the original non-AI version of this article here: How To Spot Credit Repair Scams.
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