If you are struggling with bad credit, you may be looking for a way to improve your credit score and get rid of negative items on your credit reports. However, you should be careful about who you trust with your credit repair, as there are many credit repair scams out there that can rip you off and damage your credit further.
In this blog post, we will reveal some of the most common credit repair scams and how to avoid them. We will also recommend you Credlocity, a family-owned and operated credit repair company that offers a 30-day free trial, a 100% money-back guarantee, and follows all the laws and regulations.
What are Credit Repair Scams?
Credit repair scams are schemes that target consumers with poor credit and charge them upfront fees for services that they either do not deliver or cannot legally deliver. According to the Federal Trade Commission (FTC), some of the signs of a credit repair scam are:
The company asks for payment before providing any service.
The company guarantees to remove all negative items from your credit reports, regardless of their accuracy or timeliness.
The company advises you to dispute accurate information on your credit reports or to create a new identity with a different Social Security number or Employer Identification Number.
The company does not explain your legal rights or what you can do yourself for free.
Some examples of credit repair scams that have been sued by the FTC and the Consumer Financial Protection Bureau (CFPB) are:
Lexington Law: This company operates under various names such as Credit.com, CreditRepair.com, and PGX Holdings. The company allegedly charged consumers hundreds or thousands of dollars in illegal upfront fees and failed to provide any of the promised services1. The company also used fake testimonials and endorsements on its websites1. The CFPB is seeking $3.1 billion in damages from the company, after a Utah federal judge ruled in March 2023 that the company violated a federal law that prohibits up-front billing for credit repair services2. The company filed for bankruptcy in June 202334.
Alex Miller Credit Repair: This company allegedly filed fake identity theft reports through the FTC’s identitytheft.gov website and deceptively claimed that negative items on consumers’ credit reports were the result of identity theft. The company also charged consumers $1,500 upfront and promised to boost their credit scores by 50-200 points.
Deletion Experts: This company used deceptive websites, unsolicited emails, and text messages to target consumers with false promises of substantially improving their credit scores by claiming to remove all negative items and hard inquiries from their credit reports. The company also charged illegal upfront fees ranging from $89 to $399.
These are just some of the many credit repair scams that have been exposed by the FTC and the CFPB. You can find more information about these cases and others on their websites.
How to Avoid Credit Repair Scams and Choose a Reliable Credit Repair Company
If you are looking for a legitimate and trustworthy credit repair company, you should do your homework and compare different options before signing up. Here are some tips on how to avoid credit repair scams and choose a reliable credit repair company:
Look for a company that has been in business for at least a few years and has a good reputation online. You can check reviews on sites like Trustpilot, Better Business Bureau, Google, etc.
Look for a company that offers a free consultation and a detailed analysis of your credit situation. You should be able to see what items are affecting your credit score and what actions the company will take to improve it.
Look for a company that does not charge any upfront fees or require any long-term contracts. You should only pay for the services that you receive and be able to cancel at any time without penalty.
Look for a company that follows the Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rule (TSR), which are federal laws that protect consumers from unfair and deceptive practices by credit repair companies. You can find more information about these laws on the FTC’s website.
Look for a company that offers a money-back guarantee if you are not satisfied with the results. You should be able to get a full refund if the company fails to deliver on its promises.
Why Credlocity is Different from Other Credit Repair Companies
Credlocity is a family-owned and operated credit repair company that has been helping consumers improve their credit scores since 2019. Unlike other credit repair companies, Credlocity offers:
A 30-day free trial: You can try Credlocity’s services for free for 30 days and see the results for yourself. You will not be charged anything until after the trial period ends and you decide to continue with the service.
A 100% money-back guarantee: If you are not happy with Credlocity’s services, you can request a full refund within 60 days of signing up. No questions asked.
A personalized and transparent approach: Credlocity assigns you a dedicated credit specialist who will work with you one-on-one to create a customized plan for your credit repair. You will also have access to an online portal where you can track your progress and communicate with your credit specialist at any time.
A legal and ethical method: Credlocity only disputes inaccurate, incomplete, or unverifiable information on your credit reports. Credlocity does not use any illegal or deceptive tactics such as filing fake identity theft reports or creating new identities. Credlocity also complies with all the laws and regulations that govern credit repair companies.
Credlocity has helped thousands of consumers improve their credit scores and achieve their financial goals. Whether you want to buy a home, a car, or get a loan, Credlocity can help you get there faster and easier.
If you are interested in trying Credlocity’s services, you can sign up for the 30-day free trial today and see the difference for yourself. You have nothing to lose and everything to gain.
Don’t let bad credit stop you from living your best life. Contact Credlocity today and start your credit repair journey with confidence.
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