Why Credit Repair Businesses Have A Bad Reputation
With so many credit repair companies claiming to offer quality repair services, it can be difficult to tell apart genuine companies from scams. A few years back, on the request of the Federal Trade Commission, a federal court shutdown the operations of a company that called itself ‘FTC Credit Solutions.’
Credit repair scams are prevalent across the country. These scammers give a bad name to genuine credit repair companies that are working hard to help people with bad credit.
Broadly speaking, credit repair scams are of different types. The following are the most common types of credit repair scams:
- A credit repair company does not give a contract before asking a client to sign it.
- A credit repair contract doesn’t contain complete information, such as the fee a client will be charged, etc.
- A credit repair company does not have a proper address.
- A credit repair company asks for payment before the services have been performed. As per the law, credit repair companies cannot charge upfront fees.
- A credit repair company promises to fix bad credit in no time. Improving credit takes a lot of time and effort.
- A credit repair company asks a client to create a new identity with a new social security number or federal employer identification number.
Tips to Build Credibility
If you have decided to start your own credit repair company, it is important to win your clients’ trust. Here are some simple ways to do so:
- Adhere to all federal laws related to credit repair.
- Update yourself on the changing credit repairtrends and regulations.
- Commit to operate an ethical and transparent business.
- Hold yourself accountable for your actions.
- Respect the time and money of your clients. Educate them about credit repair issues.
- Create a professional website to inform people about your business.
- Use social media to increase awareness and visibility of your credit repair business and communicate with clients.
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