The average household has over $15,000 in credit card debt. It’s
no surprise than that many people have debt that has become unmanageable,
and desperately seek help through credit counseling services. While responsible
services have helped thousands of people get their credit back on track,
others are notorious for taking people’s money and providing no
Some companies promise that they can repair a person’s credit and
improve his or her odds at being approved for a mortgage or other type
of financing. Credit repair scams often charge fees for things that the
average consumer can do themselves for free. For example, consumers have
the right to challenge any information that is inaccurate on their credit
report simply by writing a letter. When a company fails to inform consumers
of their legal rights or suggest that they should not contact a credit
bureau directly, it is often a sign of a scam. Some companies will go
so far as to suggest that a consumer create a new credit identity using
less than legal means.
Credit counseling scams are a little different. These companies offer to
contact a person’s creditors and reduce his or her payment amounts
or interest rates. These services promise to make a person’s debt
more manageable—for a fee. While some companies may be able to do
this, many offer promises that are simply too good to be true. In many
cases, the consumer would have been better off by paying the company’s
fees to his or her creditors.
With any credit repair or credit counseling company, it is important to
do your research. Some companies offer excellent services and can be very
helpful for consumers. Others are nothing more than rip-offs. Before paying
any money, research the company’s reputation online. Peruse the
company’s social media accounts and notice if customers are generally
happy. If the reviews are mostly negative, look for another company.
Also, be aware of major red flags. If things seem too good to be true,
they usually are. Be especially wary if the company asks for large up-front
payments before providing any services.
At Loan Lawyers, our attorneys help people whose credit was damaged by
debt collectors who engage in fraudulent or illegal practices. Our attorneys
can review your creditor’s claims, and will ensure that you are
not paying money that you don’t owe. To schedule a free consultation,
contact Loan Lawyers today by calling (888) FIGHT-13 (344-4813).