Are credit repair companies legitimate businesses or scams?
Fraudulent credit repair companies are making promises that they can’t keep. … the FTC has never seen a legitimate credit repair company. … Sources: www.bankrate.com/brm/news/advice/19980720c.
Jodie Bernstein, director of the Federal Trade Commission’s Bureau of Consumer Protection in Washington, D.C., observes that while “there are legitimate, not-for-profit credit counseling services, the FTC has never seen a legitimate credit repair company.” In the past, bogus credit repair companies would use clever schemes to get a debt temporarily dropped from an individual’s credit file. http://www.bankrate.com/brm/news/advice/19980720c.asp Most just take the money and run. Others simply flood credit-reporting bureaus with frivolous disputes over your debts, which may make them disappear briefly while they are investigated. “But it only puts your credit file in a ‘pending’ status, and no lender will lend you money,” says Tom Bartholomy of the Better Business Bureau (BBB). “It does nothing to improve your credit score.”
