Dealing with Debt and Credit Repair Scams


Are you concerned about your substantial amount of debt? Are you having difficulty making credit card and mortgage payments? Perhaps you’ve been getting phone calls from debt collection companies such as Midland Funding or LVNV Funding. If so, you might be a primary target for a credit repair scam or consumer fraud.
According to a press release from the Federal Trade Commission (FTC), credit repair scams often involve ads that promise consumers a “new credit identity,” or a “fresh start for your credit history.”  Such a prospect might sound pretty good if you’re drowning in debt and being hounded by creditors. However, you’re likely dealing with a credit repair scam, and you could end up paying fines or going to jail if you take them up on their offer.
If you’ve being harassed by creditors and are dealing with extensive debt problems, you don’t need to turn to a credit repair scam for relief.  Contact an experienced Chicago consumer attorney today.
Identifying Credit Repair Scams
There are many ways to identify credit repair fraud.  According to the FTC, you may have encountered a credit repair scammer if:
·      You’re asked to pay up front;
·      You’re told not to contact any credit reporting companies;
·      You’re told to dispute even accurate information in your credit report;
·      You’re told to give false information when you apply for a loan or other credit.
How do these scams hurt consumers? In short, they often provide false nine-digit numbers for consumers to use when applying for credit that look like Social Security numbers. Sometimes credit repair scam companies will refer to this number as a “credit profile number,” or a “credit privacy number,” or a “CPN” for short, according to the FTC.
Even if you’re not provided with a fraudulent Social Security number, you may be instructed to apply for an Employer Identification Number, or an “EIN.” These numbers aren’t necessarily fraudulent in and of themselves, but when you use a CPN or an EIN to apply for credit (instead of your Social Security number), you could be engaging in identity theft.
What can you do if you’re in need of credit repair? According to the Illinois Department of Financial and Professional Regulation (IDFPR), knowledge and self-help may be the best ways to repair your credit.
Legitimate Credit Repair: What Should You Know?
According to the IDFPR, it’s extremely important to know that “no one can legally remove accurate and timely negative information from a credit report.” As such, if you’re in contact with a company that claims to be able to do this, you’re likely dealing with a scam.
However, you can request an investigation into specific information on your credit report. And, if you believe there’s inaccurate information, you can dispute it. In short, you can undertake legitimate credit repair by keeping in mind a few key points:
·      If you’ve been denied credit in the last 30 days, you’re entitled to a free copy of your credit report.
·      You can examine your credit report closely, and if you believe your credit report contains inaccurate or incomplete information, you can file a dispute and request that the credit reporting company reinvestigate the information.
·      If you dispute information on your credit report but the credit reporting agency won’t remove the item(s) in dispute, you can ask the credit bureau to “include your version of the dispute (up to 100 words) in your file and in future reports,” according to the IDFPR.
If you have been the victim of a credit repair scam, you should contact the Illinois Attorney General’s Office and the Federal Trade Commission. It’s also very important to speak to an experienced Illinois consumer lawyer. The dedicated attorneys at the Emerson Law Firm can speak to you about your case today.
See Related Blog Posts:
Illinois Debtors Should Ensure That Bankruptcy Petitions Are Prepared Legally

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