Credit repair: Aliza experience in credit repair company

People who are insufficient to pay their credit card debt will not have enough money to pay a credit repair company. Credit repair companies claim that they can eliminate bad transaction on credit report. But, credit repair companies actually can’t do it, credit companies do thing that illegally for adjust your report. But now, if there are mistakes in your credit report, you can eliminate bad credit card transaction by yourself.

My friend “Aliza” saw an advertisement for credit repair on the television. Her credit card record was a trouble thing - very bad. While she called, the company told her it could eliminate her bad credit card record. So Aliza pay a $300 down payment to hire this company for helps her. Three months later, There is still the same - she couldn’t get a loan because of her bad credit card record. She thinks she was vicked, so she put a hold on her bank account and the company wouldn’t receive any payment from this account. And then the credit repair company called me.

Credit repair companies often use two approaches for their business. The first is “bombardment.” This process is flood the credit bureaus with paper that describe every single item in your credit report is not bad transaction and try to use a law that credit bureaus must delete an transaction if it can’t be verified within 30 days. But, the same law allows creditors to put some item back, if it is verified. So even if a credit repairs company succeeds to do this. It’s doesn’t mean that you delete the bad credit forever.

Another is called “files segregation”. Some credit repair companies advice clients to apply for an employee identification number. For do this you can create a new financial identity by using this new number. But if you use this way, you’ll be three federal laws illegitimate. Of course, it’s illegal to apply for an employee ID number for the bad purpose.

Many credit repair companies don’t do the above of two. But what they do is receive your fee payment and don’t do anything – sometimes they ran away from you when they receive your money.

However, The Federal Trade Commission has enacted some law that credit repair companies must do it. Credit repair companies are not allowed to receive up front fee before they make any service to you. They must tell you that you have opportunity to cancel in 3 days. And they must give you a written contract that includes information about pricing, the services that they will do, time period to do, any guarantees, and the company’s official name and business address.