Home Loans and Credit Repair Cons – 4 Tell-Tale Signs of a Suspect Credit Repair Company - By: Erik G Pearson

When trying to purchase a new home, poor credit is a big hurdle. In an attempt to improve credit, it's easy to get involved in a credit repair con, and as a real estate agent, I certainly don't want any of my clients to fall into one. The easiest way to spot them is to understand the Credit Repair Organizations Act. This act is in place to protect consumers from various scams. If a company is violating one of these aspects of the law, then they're ignorant or knowingly defiant of the law; either way, they're not a company you want to do business with.

They're violating the act, if they:

1) Make False Claims about Services – It is not legally possible to “create a new credit identity”, “erase bad credit”, or “remove bankruptcies, judgments, and liens.” You're stuck with your credit identity, and unless you can prove a negative entry is inaccurate, only the passage of time will remove it. These promises usually refer to the illegal practice of trying to use an Employer Identification Number as a new social security number.

2) Ask for Payment Before Services – Credit Repair Organizations are legally required to provide services before receiving payment. Any company that demands money up front is violating the law.

3) Don't Provide a Copy of Legal Rights – Credit Repair Organizations are also required to provide a copy of your legal rights in regards to credit. Some companies don't want to provide this document because it states that you have the right to personally dispute inaccurate information for free.

4) Don't Provide a Contract – Credit Repair Organizations are legally required to provide a contract that states the total cost of the services, a detailed description of the services to be performed, how long it will take to achieve the results, any "guarantees" they offer, the company's name and business address. Before the company can legally begin to perform their services, they must get your signature on the contract and complete a three day waiting period, during which you have the right to back out of the agreement without incurring any fees. On a side note, once they provide their company name and location, get on the internet and be sure it's a real address and company.

About the Author

Erik Pearson is a spring hill tennessee real estate agent who has written a variety of articles that can be found at spring hill tn homes for sale & spring hill tennessee tn homes for sale.

Article Directory Source: http://www.articlerich.com/profile/Erik-G-Pearson/200934

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