Many Californians, in San Diego and across the state, are taking a hard look at household finances and, for many, part of that discussion is credit repair. This is especially true for those who have been forced to declare bankruptcy - whether Chapter 7 or Chapter 13.
In 2009, this was true for more than 200,000 consumers across California.
While filing for bankruptcy can give you a jumpstart in turning your life and finances around, it also affects your credit. This is inevitable, but it doesn't have to be permanent. Luckily, there are many credit repair lawyers, and some credit repair companies, which can help you rebuild your financial state and emerge better off than ever.
Still, for every honest credit repair specialist, there is one or more looking to take you for a ride. As a consumer rebuilding credit history, you have to be very careful with who you trust.
Across the country, credit repair companies are being penalized and fined for violating the rules laid down by the Federal Trade Commission (FTC). The Chicago company Advantage Credit recently reached an agreement with the FTC to pay more than $200,000 for violations including:
- promising to rid consumers of negative credit report information, even if that information was up-to-date and accurate, and
- charging consumers before any services were rendered.
Both of these actions fell afoul of the FTC Act and Credit Repair Organizations Act, which limit the types of claims, and actions, these companies can partake in. This is something we're seeing more and more of.
In Denver, another credit repair agency, Veracity Credit Consultants, has just been sued by the state's Attorney General. As with Advantage Credit, Veracity is accused of charging fees up front, prior to any service being rendered.
As a consumer, it pays to be cautious. Before paying a credit repair company, do some research. Make sure you know exactly what you're getting and how you're getting it.
Related Resources:
- Credit Repair Company Reaches Financial Settlement with FTC (Collections & Credit Risk)
- Colorado Attorney General Sues Credit-repair Firm (Denver Business Journal)
