Legal Scams : Credit And The Poor And Those With Bad Credit

1714 Words Dec 18th, 2016 7 Pages
There are numerous legal scams that specifically target the poor and those with bad credit. When money is tight, it is very tempting to be able to erase bad credit or to accept a cash advance until payday. Many of these companies that target the poor are operating a perfectly legal business, but they are not providing a helpful service. They are hurting the consumers that can least afford to lose money on of these scams. Credit Repair Companies Credit repair is not always a scam. There are legitimate credit repair companies that help consumers negotiate better terms with lenders. Legitimate credit repair companies teach their customers to live within their means and discourage future purchases made on credit. This is a helpful service and is offered for free by many credit counseling agencies. A legitimate credit repair agency will explain that you can do everything that they do for yourself if you are willing to negotiate with your creditors. Credit repair companies who offer a new credit identity should be avoided. There is no legal way to establish a new credit identity. Committing a crime at their suggestion will only compound your problems. Avoid any credit repair company that suggests disputing all of the information on your credit report, unless it truly is inaccurate. A common scam involves telling consumers that many lenders will not bother replying to a dispute or that lenders may have lost your original paperwork for a legitimate debt. This implies that you…
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