Credit scores is one of the casualties of foreclosures and short sales. Homeowners whose savings and dreams were swept away as home values fell now are being targeted by companies promising credit repair they can’t deliver.
The Federal Trade Commission is focusing on fraudulent, disceptive, and unfair business practices and urges consumers to report such practices to the FTC’s online Complaint Assistant at www.ftc.gov, or by calling 1-877-FTC-HELP (1-877-382-4357.
Consumers can avoid being victimized, the FTC notes, by taking these steps:
· Avoid any company that asks you to pay for credit repair services before any services are provided. This is illegal.
· Avoid any credit repair company that will not tell you your legal rights and what you can do – yourself – for free.
· Avoid any credit repair company that tells you not to contact credit reporting companies directly.
· Avoid any credit repair company that advises you to dispute all the information in your credit report.
· Avoid any company that suggests creating a “new” credit identity, and a “new” credit report, by applying for an Employer Identification Number to use instead of your Social Security number. Such a move is against the law, and if you follow it and commit fraud, you also be prosecuted.
Instead, the FTC advises, find out what is in your credit report by obtaining free credit reports from the three credit reporting companies – Equifax, Experian, and TransUnion. You are entitled to one free report from each company every 12 months. Request the credit reports through www.annualcreditreport.com. You can also call 1-877-322-8228 to request a report.
After any errors are corrected, time, conscious effort, and a debt repayment plan are the most effective ways to improve your credit score, according to the FTC. Visit www.ftc.gov for more information on credit repair scams and steps you can take to build a better credit score over time.