Bad Credit Repair Service Company

Individuals can easily find assistance from a bad credit repair service company on the Internet. There is also quite a bit of information on the successes and failures of these organizations online and perhaps the best information concerning this type of business comes from the Federal Trade Commission. These organizations will advertise their ability to erase poor financial records, legally create a new identity, or remove bankruptcies, judgments, liens, etc. from a personal financial file. The FTC advises against believing those claims of a bad credit repair services company, and, instead, encourages individuals to work at improving financial records on their own.

The FTC warns consumers to beware of a bad credit repair service company that charges a fee up front, before any assistance is provided by the organization. Also, the FTC encourages consumers to avoid working with companies that won't tell the individual what their legal rights are and what can be done on their own. The bad credit repair services company might tell the consumer not to contact the credit reporting authorities (CRAs) because it takes the expert technique of the organization to get results. This information should not be taken seriously. If the organization suggests for the individual to invent a new identity by applying for a new Employer ID to use instead of a Social Security Number, they should not be used for assistance. Any advice to take part in any illegal activities or anything that seems somewhat out of the ordinary should be avoided. This could result in criminal charges and prosecution for fraud. It is a federal crime to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses, despite what organizations or advisors may say.

The law allows the consumer, without the help of the bad credit repair services company, to tell the CRA what information they think is inaccurate, to back it up with whatever documentation is available, and to request that it be removed. It does not take a bad credit repair service company to make the CRA investigate the items in question unless they consider the consumers dispute to be frivolous. If the investigation does not resolve the dispute, the individual can ask that a statement of the dispute be included in a credit report, and that a copy be sent to anyone who has asked for this financial report in the last six months--all without the help of a professional organization or advisor. The consumer does not need a bad credit repair service company to write to a creditor, stating that an item is being disputed. Although advisors and companies may be helpful in getting disputes settled, they are not entirely necessary in every situation. Knowing when to choose outside help will rely on the judgment and discretion of the individual. Some may rely on prayer and understanding from God on what to do in this situation. "The effectual fervent prayer of a righteous man availeth much" (James 5:16).

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