Connecticut Attorney General,
Richard Blumenthal
Law in Plain Language: Credit Repair
When personal financial problems mount, people in desperate search for financial stability too often succumb to credit repair ploys that only make their problems more severe.
Sadly, they may be bilked out of hundreds or even thousands of dollars, with their promises of repaired credit unfulfilled.
Many illegitimate credit repair companies exploit such individuals who want to re-establish themselves financially after suffering a credit setback. Despite claims about guaranteed results in securing credit and improving credit history, the repairs are in fact legally impossible and out of reach.
For example, I recently filed a lawsuit after receiving more than 200 calls and letters of complaint concerning Credit Resource Management Group of Stamford, which allegedly made unauthorized withdrawals from customers' bank accounts. We have also acted against credit repair companies promoting tactics such as advertising "gold" or "platinum" cards that can only be used with special catalogs and directing consumers to "900" and "976" exchanges which result in charges regardless of whether they wish to use the company's services.
People should know that credit history is maintained by credit bureaus based on information provided by banks, department stores and other creditors. Regardless of how a negative credit history developed, even if it is due to unemployment or illness, credit bureaus may retain it for seven years, and bankruptcy information for 10, so long as the information is accurate.
If negative credit history involves inaccurate information, you have the right to see the credit report and challenge any inaccurate or outdated information. You do not need the assistance of credit repair services. In fact, you can do anything a credit repair company can do - for free or for only a few dollars.
Bottom line, the only remedy for poor credit history, if correct, is time and financial prudence. Don't pay a cent to anyone who tells you otherwise.
Money back guarantees rarely protect you from being a victim of credit repair scams. With a few simple calls you can determine whether an agency is legitimate or not. For More Information, please read "How to Spot Credit Repair Scams and Correct Your Credit History Yourself"
