You’ve seen and heard the advertisements just about everywhere:
“We can fix your credit – guaranteed!”
“We erase bad debt, liens, judgement from your report forever.”
Ads for credit repair services appear frequently online, in print and on television. They are designed to lure you into thinking that these credit repair companies have the magic formula for fixing what ails your credit. If you’re desperate enough to believe these ads, you just might be setting yourself up for an expensive scam that could cost you more than your fee.
Before I go further, let me say that all credit repair companies are not scam artists designed to separate you from your money. Credit repair services can work on your behalf to remove erroneous or non-timely information that appears on your credit report which could also adversely affect your credit. But, there is nothing that a credit report service can do that you can’t do yourself.
According to the Federal Trade Commission (“FTC”), it is illegal for credit reporting agencies to lie about what they can do for you and to charge you before they have performed any services on your behalf. The FTC states that credit reporting agencies must notify you of the following: […]