Credit repair companies simply do the-leg-work for you. There’s nothing a credit repair organization can legally do for you, including removing inaccurate credit information, which you cannot do for yourself – given you have the available time and energy.
Many consumers decide that it is worth paying a credit repair organization to take care of these tedious matters for them.
Under the FCRA, if a consumer credit reporting agency receives what it (in its sole opinion) deems as a frivolous challenge, then that credit reporting agency can legally ignore the request. Credit repair companies cannot guarantee success because creditors have such a large influence on what appears in a credit report.
Do Your Due Diligence
Any consumer wishing to use the services of a credit repair company must due their due diligence before proceeding and only use a reputable firm.
It’s important to be aware that credit repair companies that have been in business for quite some time, with many clients over a number of years, such as Lexington Law, will generate complaints on consumer Web sites where readers claim the company is a scam. Of course, each consumer needs to do their own homework.
Credit Repair Companies May Not:
- Charge you until they have completed the promised services
- Make false claims about their services.
- Perform any services until they have your signature on a written contract and have completed a three-day waiting period.
- Make suggestions that you mislead credit reporting agencies about your accounts or alter your identity to change your credit history
Any Contract with a Credit Repair Organization must specify:
- A detailed description of services to be performed
- The terms of payment for services, including their total cost
- How long it will take to achieve results
- The company’s name and business address
- Any guarantees offered
Are Credit Repair Companies Scams?
Overall, Credit-Repaired.org does not believe that firms like Lexington Law, Ovation Law, and other credit repair industry leaders are scams, despite the fact that they do have lots of complaints about them on consumer-complaint Web sites.Be sure to evaluate each organization’s complaint volume against the size of the business’s overall client base. And do your own homework! Further ensure that the amount you will pay the company seems reasonable to you for the services you’ll be receiving.