How to Spot a Credit Repair Scam
The FTC has come down hard on illegitimate credit repair companies that take advantage of people who are desperate to repair their credit. And rightly so.
To enable consumers to spot to differentiate the illegal from the legit, they have listed several points to keep a eye on when shopping around for a credit repair service:
Beware of credit repair services that request fees in advance
Beware of credit repair services that don’t disclose your rights
Consumers have the right to attempt credit repair on their own. Lexington offers its affordable legal services to those clients who prefer having legal professionals help them manage their credit disputes and creditor interventions. Click here for information about your rights as a consumer >
Beware of credit repair services that advocate “new” identities
It is unlawful to create a “new” identity by applying for an Employer Identification Number (EIN) to replace one’s Social Security Number. File segregation is a serious crime that can result in fines or imprisonment. How Does Lexington Repair Credit? >
Beware of credit repair firms that misrepresent their expertise
Claims such as “25 years of experience” can be misleading. That number often represents the combined years of attorney experience, not the actual length of time that the firm has been practicing. By contrast, Lexington Law has been practicing credit report repair since 1991. Lexington Law’s History >
Beware of companies that imply FTC endorsement
The FTC does not endorse any business. If a credit repair organization implies FTC endorsement, you would do well to proceed with caution.