Is credit repair always a scam

Submitted by Laura on Sat, 03/29/2008 - 07:08

Please put your valuable vote in here.

I have seen both good and bad, unfortunately it is the bad ones that stick out in my mind, lol.

I am currently working with a good one, heritage, they seem to be descent and treat me like a person not a criminal.

Sat, 11/08/2008 - 14:52 Permalink

No not all credit repair business's are scams. Many offer very good info , just don't pay much. Most information you can get on your own & credit repair business's can speed the process. So as always check around , & forums are a great way to learn.

Fri, 11/14/2008 - 17:09 Permalink

Good one Doc... I think when people do not do their research and hire out one of these places they end up not satisfied with the company or their results. You get enough bed credit repair people and it will give the whole industry a bad name. Now a days with credit repair being such a well sought after business (seems like evryone wants to get into it) it is starting to get harder to find reputable agencies. If you looki back on some of the posts here you will see quite a few inquires into the field of debt collection and how to get started in the business.

Fri, 12/05/2008 - 17:12 Permalink

Lately ( the last few days), there HAVE been a few 'Credit Repair' agencies on this forum. Giving good(?) advice...I don't know. But..of course, they will talk 'positive' about themselves. It's almost like they are in compitition with each other.

Wed, 12/10/2008 - 07:08 Permalink

No, all credit repair agencies are not scams, but most of them are, as they promise to remove all negative listings from your report which is not possible as correct information can never be removed from your report. The credit repair companies can never remove judgments and charge off listings from your report. You can do it yourself what the credit repair company does to repair your credit, but repairing credit needs patience and if you do not have that, you can go for good credit repair agencies.

Mon, 01/05/2009 - 07:38 Permalink

I hear that some credit repair companies actually work with the collection companies. Does anyone know if this is a true statement?

Tue, 01/13/2009 - 02:12 Permalink

Yes, the credit repair companies has to work with collection agencies in order to build up your credit. Once you go for credit repair service, the credit repair agency negotiates with the collection agencies for pay for deletion after you pay off the outstanding debt so that as soon as you pay it off, the negative listing goes out of your credit report. Since the credit repair companies have many clients who owes money to the same collection agency, the CA also agrees to delete the listing as soon as you pay off the amount as agreed.

Tue, 01/13/2009 - 06:50 Permalink

I have heard though that some work with them to see that the credit card company gets as much as it can back from the debtor. So it is saying perhaps that the credit repair companies actually are more for the collectors than for the debtor. Could they legally do this and if so would it not violate the consumers right?

Tue, 01/13/2009 - 22:17 Permalink

If the credit repair companies have oral agreements with the collection agencies, then I don't think that it will come under consumer right because you have no proof. So the best way to repair your credit is to do it by yourself. Doing so, you can negotiate with the creditor for the settlement amount on the debt and you can save money you would have given to the credit repair agencies and use this money to repay off the debt.

Wed, 01/14/2009 - 08:35 Permalink

True "credit repair" companies do not negotiate with (terrorists) debt collectors...

They work to eliminate inaccuracies and omissions from your credit files...

Working "with" debt collectors is truly titled as "settlement" or "negotiation".

Wed, 01/14/2009 - 11:14 Permalink

If you are thinking about using the services of a credit repair company, you should know that the Federal Trade Commission has rules that these companies must obey.
Credit repair companies are not allowed to ask for money up front. If they do, they are breaking the law. The FTC also requires these companies to let you know that you have three days to cancel the services and honor the waiting period.

Sat, 02/07/2009 - 04:43 Permalink

Hello everyone I am new to the forum and I can't vote on this reply at this time but I will tell you however that I have spent a lot of money on Attorney's fees and have gotten no where so I will see what a credit repair company does for me. Research, BBB, and using the tools are all good advice.

Sat, 02/28/2009 - 03:38 Permalink

I think that instead of taking the help of credit repair agencies, you should start repairing credit by yourself. Doing this will help you to save the agency fees and use it to repay your debt. Credit repair is not at all a difficult task, but it is time consuming and so you should have patience if you want to repair your credit. There are several posts in the forum which will help you out to repair your credit.

Mon, 03/02/2009 - 09:48 Permalink

All thought every business can have their scam artists, in it for the quick buck, most every owner of credit repair companies that I know care about doing their best for their clients.
The credit repair dispute mills I feel aren't scammers but don't always do the best for many of their clients. Attacking negative entries can make scores worst in certain circumstances and only account for around 35% of what makes up your credit score.
Dan Sater

Thu, 03/12/2009 - 03:26 Permalink

As per the Federal Trade Commission, the credit repair companies that want you to pay before they offer you any repair service is a scam because as per the CRO Act you need not pay anything to the repair company until you get the service as promised by them. It should always be kept in mind that if a credit repair company promises to remove legitimate and correct information from your credit report, they are lying.

Thu, 03/12/2009 - 06:17 Permalink

if some credit repair company is claiming that they will do everything to make it possible (even gray hat practises too) it is better to stay away.those who are wise they can smell the rat from distance ........wise are those who beleive "there could be some descripancies in the services but there will be legitimate answers for them and no goofy." hope this will shed some light on the matter. :wink:

Sat, 03/21/2009 - 07:25 Permalink
Anonymous (not verified)

Although there are many reputable credit repair companies in existence today, there are also many scams being perpetrated on unsuspecting consumers. Like most credit scams, credit repair scams prey on those people who are feeling desperate and willing to believe even unreasonable promises.

Tue, 04/21/2009 - 07:26 Permalink

Credit repair organizations have been popping up all over the place — in television and radio ads, in the Yellow Pages, and on the Internet. They sound like a great service because they often promise to remove negative information from your credit history. Who wouldn't want that? Be warned: Accurate information, both positive and negative, cannot be removed from your credit report by using credit repair fraud. In fact, most information stays on your credit report for seven years, and bankruptcies can stay on your credit report for up to 10 years.

Tue, 04/21/2009 - 07:27 Permalink

Credit repair organizations have been popping up all over the place — in television and radio ads, in the Yellow Pages, and on the Internet. They sound like a great service because they often promise to remove negative information from your credit history. Who wouldn't want that? Be warned: Accurate information, both positive and negative, cannot be removed from your credit report by using credit repair fraud. In fact, most information stays on your credit report for seven years, and bankruptcies can stay on your credit report for up to 10 years.

Tue, 04/21/2009 - 07:28 Permalink
Gilligan (not verified)

I have an emergency situation where i need to get $1000 fast for my car to
be repaired. I need the money fast but I still want to not get screwed over.
My friend suggested an online site that he used before called
instantbailoutdotcom I looked it over and it looks ok, but I am not sure
what is a reasonable rate for a payday loan. Is there a standard for this
type of loan? Also does a payday loan effect your credit?

Wed, 04/22/2009 - 05:51 Permalink

Before going for payday loans I think that you should check whether the payday loan company is legal in the state or not and then go for the loan. Can you please tell me the state where you currently stay?
Payday loans does not affect your credit so long as you pay them back on time. But because these payday loans have very high interest rates, it is likely that most borrowers cannot keep up with the payments and become delinquent. Now, if you become delinquent, the creditor can report it to the bureaus and your credit score may get affected.

Wed, 04/22/2009 - 08:12 Permalink

Credit Repair is a service... you should pay a normal fee for a service rendered on a monthly basis. It is only a scam when results are guaranteed. Otherwise it is perfectly alright to hire somebody to clean up incorrect negative information from your credit reports.

Mon, 04/27/2009 - 16:50 Permalink

I have also seen credit repair agencies making claims that they can remove even bankruptcy from your credit report. Bankruptcy is a public record and can never be removed from your report and it stays there for seven to ten years and affect your score. Moreover, as per the FTC guidelines, the repair agencies cannot charge you till the time they have provided you with the service they have promised. Some information like hard inquiry can be easily removed from your report by sending letters to the inquirers and for that you need not even hire a credit repair agency.

Tue, 04/28/2009 - 07:35 Permalink

While I certainly agree that there are many unscrupulous credit repair agencies, there are some very honest ones as well. The important thing is to do your homework! Just like you wouldn't hire a roofer without getting references, if you're considering hiring a credit repair agency get references, ask lots of questions, and check with the BBB and the ECRA

Mon, 05/04/2009 - 01:24 Permalink

Although I know most of it is placed on the forum in the interest of helping people, there does exist a trememndous amount of misinformation, and incomplete information, particularly as it applies to credit repair organizations. On just this page, for example, someone mentions researching the BBB.

The BBB does not afford membership opportunity to credit repair organizations, nor does it offer anything but an "F" rating to them. I have spoken with the director of my local BBB personally, and he said it was simply a "organizational policy" to never give credit repair companies a fair shake...

My own company has had but a SINGLE complaint in it's five-year history. That complaint was answered, and a MOUNTAIN of evidence was provided (by yours truly) to refute the ridiculous claim of a client whose file had been closed for over three years, simply sought to to the leverage the BBB against me, and get free money... However, the BBB "administratively closed" the action, basically citing a lack of information to substantiate either party's claim. This is a complete fabrication in my instance, but it's the way the sweep false claims under the rug for non-members...

Now, as for the comment about public records... Also false. The examples page of my website shows MULTIPLE examples of BK's, judgments, liens, etc. having been removed as recently as last month. Public records are held to the same standards of reporting as are any other item...

I offer free advice on here, but I am also available BY PHONE in my office during normal business hours...

Sun, 05/10/2009 - 11:59 Permalink

Doc such a nice info on your part .Really informative.

But I request all the people that they should stick to only those credit improvement companies which are having BBB affiliation.So it will save your time to search for an authentic service agency.

Sat, 05/16/2009 - 18:00 Permalink

NO credit repair company has a legitimate association with the BBB... They do not afford membership (accreditation) to ANY credit repair company.

There do exist a few companies that have lied or misrepresented what they do, and have managed to get something other than an F rating, but it is the BBB's policy to ONLY give F ratings to credit repair organizations, regardless.

Sun, 05/17/2009 - 22:41 Permalink

but This BBB rating is still a benchmark to understand whether the company which is offering credit repairing services has some credentials as opposed to those who have no credentials with them.

Doc, what could be the other benchmarks when it comes to the legitimacy of the company?

:arrow: :arrow: :arrow:

keep us informed.

Wed, 05/20/2009 - 03:22 Permalink

If the BBB is NEVER going to be anything but an "F" as a policy, then is it really a legitimate BENCHMARK..? I hardly think so... If there are a significant number of complaints, then THAT is certainly something that merits consideration, but the actual RATING is anything BUT legitimate.

Each state has different rules about credit service organizations. They have different registration and bonding requirements in each state, although they general follow something in the order of a registration and annual review and renewal of said registration, plus a bond of $10-100K, assuming they charge up-front fees.

In my state [TX], the Secretary of State handles it, but it varies from state to state...

The best bet would be to Google "[your state] credit repair regulations".

Thanks for affording me the opportunity to help dispell some of the myths and fallacies about credit repair... If you would like to confirm what I have said about the BBB's policies on credit repair, I would encourage you to call them yourself... 1-703-276-0100

Wed, 05/20/2009 - 16:17 Permalink

You mean to say that one should visit the official website of the governing authority of credit repair agencies of one's particular state I think this is a nice idea as most of the guys can just Google the official website of their state, in order to come to the conclusion of legitimacy of the organization.

But if there is any list of the official websites of all the states here then it will be lot more easier for all the guys.

:idea: :idea: :P

Thu, 05/21/2009 - 02:09 Permalink

To my knowledge, there exists no such list...
If anyone has a question about the regulatory body in a particular state, please feel to contact me through our website... I'll be happy to find out, if I don't already know...

Thu, 05/21/2009 - 02:20 Permalink

I am collecting the list of official websites of governing bodies.

here are some of the links I will update all the links as and when I get them.

1. Michigan state :,1607,7-154-10555_13251_13257---,00.html

2.federal trade commission :

3.alaska government :…

I will be updating other links on this board.

Thu, 05/21/2009 - 06:20 Permalink

Hi cdloanmod,

It is always better to repair your credit report on your own. But in case you, are planning to hire a credit repair company there are certain questions you should ask. Here is a list of certain things you should do, before you pay the credit repair company, to handle your debt accounts.

1)It is always better to to have a written agreement of whatever terms both the parties agree upon.
2)You should demand written materials of how they plan to go about in handling your debt. They should also mention the estimated time within which you will be debt free
3)You should ask if any particular debt is not included in the contract.
4)You should always check whether the company you are planning to work with is licensed.
5)A bit of background check of the company could also help. You should also inquire about there success rates.

Thu, 05/21/2009 - 10:06 Permalink
s4ndm4n (not verified)

I wondered and worried about all of this before I was hired. I work for the Federal government now. Yes I believe at times they will use the information, but regardless, my credit score and status as an employee now is proof that its not necessarily a closed door if you have bad credit. No, I won't go into detail about my credit or anything but suffice to say that I can very confidently say this is true.

I do know some employers may lock out people with bad credit and I think its ludicrous, there are people out there that are great employees but bad at managing their money. It doesn't necessarily coincide and I'm thankful I don't have to worry about it.

Thu, 05/28/2009 - 19:12 Permalink
Lynn (not verified)

I just recently had a judgement against me even though my suit was well within the SOL time period. I have a friend who is a judge and he told me that the presiding judge over my case was a total idiot. It would have cost me more to fight the judgement then to pay it, but by all accounts I should have won my case. SO yes sometimes SOL works and sometimes not.

Thu, 05/28/2009 - 20:05 Permalink
Me (not verified)

I work for a collection agency. Dispute EVERYTHING whether it is valid or not. If the collection agency is understaffed and they do not reply to the credit bureau's inquiry within 30 days, the credit bureau will remove the reference even on valid debt.

Those things you can't get off by disputing try sending in a settlement payment for at least 50%, and write on the back of the check (it must be the back) that "by cashing this check the recipient agrees to remove and expunge any derogatory reference from the sender's credit report".

If the agency cashes the check and does not remove the derogatory information, consult with an attorney (who will work on contingency - which mean you only pay if the attorney prevails) most agencies will settle with the attorney/lawsuit for a couple of thousand dollars because it is cheaper than fighting the law suit.

When they settle you get money in your pocket and get your credit score improved.

Even if you don't pay a reduced payment to settle the debt, this terminology on the back of the check for 100% payments will help you remove even valid debts from your credit report.

Collection agencies don't make money unless they collect money. They are not going to turn down a check just because you are forcing them to remove it from your credit by adding the verbiage about expunging. If they did, they wouldn't make their commission.

I had one collection agency call me when I did this and ask for a new check. I told them no just send the check back that I had another creditor who would expunge/delete the derogatory credit information for payment. Guess what???? They cashed the check and expunged the record and it was a valid debt. :)

Hope these insider tips help you! See we aren't all bad people at collection agencies.

Thu, 05/28/2009 - 23:28 Permalink
Roscoe White (not verified)

I have been dinked by these guys. They say they have purchased a debt from BMG Music that originated 07/26/2002, which I never ordered from. AND which is past the 'statute of limitations' for collection. Under the Fair Credit Collections Act, no one may attempt to collect a debt past the States statute of limitations and further is subject to a $1000 fine/penalty plus actual damages. I am sending letter via certified mail to both National Recovery and TransUnion. I am trying to refinance my home but the FICO scores have taken such a hit from these criminal acts.

Thu, 05/28/2009 - 23:55 Permalink
mommy (not verified)

if my creditor is requesting payment on my 2nd mortage, can i lose my home..

Fri, 05/29/2009 - 03:01 Permalink

Hi mommy,

The second mortgage company can foreclose your home, if you fail to pay off the loan. Even then you will have to pay off the first loan, before you pay the second mortgage.

If you default on a loan payment it is also possible that your second mortgage creditor purchases the first mortgage. In that case, if he forecloses your house, you might lose your house to him.

Fri, 05/29/2009 - 06:07 Permalink


You can most certainly Remove bankruptcy legally by disputing it and aggressively yet effectively approaching the credit bureaus to resolve the issue.

Fri, 05/29/2009 - 09:46 Permalink
-Jobbik- (not verified)

I just wanted to say thanks to everyone on this site, I had carelessly decided to get a report from and was having trouble getting out of the 7 day trial.

I kept records of my logon information, couldn't find it on their site, and my information would not work on I soon realized how shady that site was, but I called the number 1-800-720-4420(special thanks to Fraud Hater) and talked to them and demanded cancellation as well as written comformation and cancellation numbers. I immediately called my bank and informed them about the possible still incoming charge, so they are now on watch for it.

Its only day 2 of 7 but I am hopeful that the situation will be resolved. Thanks again!

Fri, 05/29/2009 - 12:49 Permalink

Yes it has been quite sometime for me also and I love the new look, great job!

Fri, 05/29/2009 - 13:51 Permalink

True, but many times people that have to resort to payday loan companies don't have credit good enough to get a loan from a conventional source such as a bank or a credit union.

I do believe that the government will be looking more into the practice of these payday loan companies in a matter of time. They have addressed some major issues with the credit card industry and I can not see them over looking an industry that preys so heavily on their clients.

One or two of these loans can really add up to big bucks in the long run. Here in Pa they have shut down all store fronts and they are illegal to lend online to a PA resident. Of course there are always ways around it. But the banking commission here in Pa along with the Attorney General and the Governor has filed suit against them. You can search for the suit on the Attorney Generals website or on the banking commissions website. Pa don't Play. LOL

Fri, 05/29/2009 - 13:59 Permalink

You should got to the mortgage forum and present these questions, there are alot of experts that work in the industry everyday that would better be able to assist you. You can go to that forum by clicking the link at the bottom of this page under "sister communities" click the mortgage fit link. Find your topic and present your question there. Hope you find what you need, goodluck!

Fri, 05/29/2009 - 14:05 Permalink

I started my credit repair by making the bills that I had on time and then pursuing some other small accounts that were easy to handle, make small payments to build a credit history and then my score started to come up.

Believe it or not, it was fashion bug and fingerhut that reported monthly payments along with making my house and car payment on time that has helped me bring my score up to where I can get a descent rate. I still have a long way to go, but I am getting there slowly but surely.

Fri, 05/29/2009 - 14:12 Permalink

Great advice erb, I use the Pa attorney generals office for just about anything that I want to report, they act quickly and don't take any crap off any companies. They have an online compliant form that you can fill out so it is very convient also.

Fri, 05/29/2009 - 14:14 Permalink