Debt Repair Scams

It is unfortunate that while you are trying hard to fix your credit record, scammers are out there to make things worse for you. Debt repair scams seek to take advantage of people who are already desperately in debt. Here are some characteristics of a debt repair company you have to watch out for to help identify a scam.

Questionable identity

Have you heard of this debt repair company before? Can you name some people who have availed of its services? Does it have a proper website and a working phone number? It would be suspicious if you answer “no” to all of the previous questions. A serious debt repair company should be able to provide adequate contact information and should maintain a professional image. It would readily provide you with information even if you do not disclose your own yet.

Illegal advice

Another warning sign lights up when your debt repair company advises you to do something illegal. One such advice is having you clear your debt records by giving you a completely different identity. It is a crime to just escape from your responsibilities.

Unusually high charges

Scout several debt repair companies and ask for their fees. Some may charge extra high. These companies may even say that their services are refund-free.

Impossible promises

Is your debt repair company promising results in minutes? Improvement in your credit score can be seen within a minimum of thirty to sixty days. Complete turnaround may be felt after a period as long as three or even five years.

Incomplete contract

Everything that you agree on must be put into writing. You should not let your debt repair company provide you a contract that does not contain all terms. The contract must contain all of the company’s information, the duration of the service, amount to be paid for the service, and an allowance for you to cancel the contract in three days if you have changed your mind.