Learning to avoid debt relief, consolidation & credit repair scams
You have undoubtedly seen an increase in ads on TV, the Internet and radio claiming they can consolidate your debt into an easy payment, or repair your credit all together. I heard an ad just yesterday that claimed they could guarantee to raise my credit score 125 points in just 3 months! You literally can't get away from these commericals.
But why are these companies spending millions on advertising?
This is a huge market because nearly 1 out of 20 American households have a credit score less than 600. In addition, 1 out of every 100 American households will be forced into bankruptcy, severely damaging their credit files for 7-10 years, and those statistics were calculated before the "Great Recession." Because so many hard working Americans have this problem, it is an extremely lucrative business for companies and scam artists that claim to "help" you repair your credit and manage your debt.
Here's how the scam works
What I found after several hundred hours on the the phone with literally 50 different companies was that they were pretty much debt collectors! These companies are practically owned by the major banks. These companies are paid a percentage of all the money they can re-coup from you, just like regular collection agencies.
Don't be fooled, they are not working with your best interests at heart. During one of my phone calls my "debt consultant" advised me to set up a ten year payment plan @ 15% interest on $18,000 worth of debt I supposedly owed. Ten Years! He claimed that would instantly raise my credit score 50 points. I know that is not possible, at all. It was all lies just to get me to sign a new loan at a higher interest rate and longer term.
Is it really possible to repair my credit quickly?
If you know where to go. You need the help of an attorney, and a good one. I know "lawyer" is a dirty word for many people, but when you are dealing with legal matters, and your debt/credit is a legal matter, you should let the professionals handle it. There are several law firms that will provide you with all of the assistance you need to consolidate or reduce your debt, repair your credit and increase your credit score. Unfortunately, the majority of people will never get the help they need to repair their credit.
A large number of people will get caught in an endless cycle of payments to these so called credit repair companies. This is because 99% of all the companies that provide these services are owned by the very same groups of people that want to keep you in debt for life! These credit repair companies can be set up in very little time, and can be shut down just as fast. They all have the same purpose .. making the creditor more money, and in some cases they can make your credit score even worse than when you started.
Typically they will get you to sign up for their consolidation loans, and a give you a few phone numbers or web sites for government assistance programs. Then these scammers continue to bill you for their services month after month and make it difficult to cancel their services. This is just the beginning! These companies then sell your information to other credit repair "companies" who will try to sell you other debt consolidation products and services! In the end they are the only ones getting rich .. while putting you even further in debt. This is a huge racket, and it's truly buyer beware.
The typical price for most of these services range from $50-$5000 depending on how much debt you have. But in reality, most of these companies offer you nothing more than:
- Poor information on government programs, and your rights.
- No real legal representation, many don't even have a lawyer on staff.
- Absolutely no help with negotiating with your creditors, or increasing your FICO score.
- No organization, just a few "tips" or "hints" to help you fix your credit on your own.
- No customer service or help available, most don't even have a phone number.
- No refunds. Most of these fly-by-night companies just take your money, and when they get enough complaints they simply close up shop and start over under a new name.
- Amateur web sites with broken links, and automated phone systems. (this is a dead give away to a scam artist).
- Guarantees to raise your credit score in a short time(no one can do this!)
- Guarantees to raise your credit score just by making a phone call to them (this is just not possible)
Over the years I have reviewed hundreds of credit repair & debt consolidation companies and informational guides. I called their customer service departments, used their advice, as well as doing an extensive background check on the company itself. Out of all the credit repair services I only found a few real law firms that specialize in debt management & credit repair! These law firms charge a reasonable fee and provide dedicated paralegal's to help you every day.
All of my recommended credit repair services below have a complete 100% Satisfaction Guarantee. These companies have a good reputation and live up to that guarantee. Look at my recommended services below, and decide for yourself. Don't let a poor credit score stand in your way of realizing your dreams. No matter what you want to do, a good credit score can help. You can repair your credit quickly and make your dreams a reality. As always I will keep you updated on my findings.
Lexington Law Review
Website: Click Here To Visit Lexington Law
Price: $99.95 setup fee, $39.95/mo
Money Back Guarantee: Yes
Lexington law is far and away the leader in the credit repair business. Founded in 1991, they have successfully removed over 2 million negative credit remarks from clients credit reports. Their fee's are some of the lowest in the industry, and their customer satisfaction rating is the highest in the industry. Unlike other law firms they don't rely on high pressure sales tactics, or unethical marketing campaigns to sell their services. They currently employee 15 attorneys who specialize in credit repair, and attend yearly continuing education classes in order to provide their customers with the best possible service. They also include a no questions asked money back guarantee, if you aren't satisfied for any reason they will issue a 100% refund.
Ovation Law Review
Website: Click Here To Visit Ovation Law
Price: $95.00 setup fee, $34.95/mo
Money Back Guarantee: Yes
Ovation Law's specialized credit repair processes, legal expertise, and guaranteed customer service are unmatched. Unlike some of the other law firms we found, they provide a customized, personal approach to each credit repair case and strive to provide the best customer service in the industry. Each client gets their own personal paralegal to work on their case, and provide a toll free phone number to speak with your paralegal. They are in it for the long run, and provide over 23 years experience in the credit repair business. Ovation Law has the resources, ethical standards, and legal expertise that typical credit repair agencies cannot offer. They fight for you, from start to finish. They are honest and up front with their pricing, and they will never ask you to pay additional fees for extra services.