Credit Repair Scams

Unfortunately there are many credit repair scams taking advantage of people with bad credit and desperate to repair their credit. Credit repair scam companies may look legitimate but there are many ways they can scam people out of their money and leaving them worse off with credit problems. Many credit repair scams claim to help people with bad credit, in bankruptcy, facing foreclosures, having repossessions, to name a few. The credit repair scam companies are bombarding helpless people with promises to fix their credit problems, help them get new credit cards, loans and mortgages. Most of the credit repair scams are rip-offs.

How do credit repair scam companies work?

Credit repair scam companies offer credit repair services that usually include credit report disputes, wiping off discrepancies, bad credit items such as bankruptcies, foreclosures, or repossessions. Some credit repair scam companies only offer credit report analysis and credit repair advice. Basically, they tell you what you have to do and you go and do them yourself. Some credit repair scams are even multilevel marketing schemes and the credit repair consultants get commissions for recruiting you to become part of the team.

How many credit repair scams or credit scam companies are there?

According to the National Center for Financial Education, consumers and service persons abroad lost close to $100 million over the 5 year period as a result of credit repair scams. These victims hired rogue credit repair scam companies to quick fix their credit so that they could borrow. They paid these credit repair scam companies anything from $1,000 to over $100,000 to fix their credit but their credit was either not fixed or got  worse as a result.

There are have multiple reports of credit repair scam companies launching major advertising campaigns that they would fix anyone's credit, no matter how bad within 30 days or money back guaranteed. A lot of naive folks with bad credit problems signed up, thinking there is nothing to lose because in 30 days they could get their money back if it didn't work. However, the credit repair scam company involved, after collecting and cashing all the checks received, skipped town and never be heard from again.

These credit repair scam companies are difficult for the law to catch up with them. Credit repair scams are very illegal but until they get caught and lost in court, they would continue to prey on innocent, down on luck people desperate to clean up their credit and improve credit score.