A
good credit report is one of the most important bargaining
tools a consumer can possess. Yet, for a variety of reasons,
some people develop a poor credit history. They may also
fall victim to con artists or scams that prey on the consumer’s
desperation by promising to restore the consumer’s
good credit.
The Hook
Many of these con artists call themselves credit repair companies
and advertise that they are able to "erase bad credit!
100% guaranteed" or provide a "fast and easy
way to get rid of bad credit history." They charge
from $50 to $1,000 to "fix" a credit report.
Most of the time, companies that advertise such wonders
will take your money and do little or nothing to actually
fix your credit.
How to Protect Yourself
Know in advance that there are no easy or quick ways to repair
an accurate, but negative credit history. Only time can
repair it. This is true even if past credit problems were
due to illness or unemployment.
Before paying any money, contact the
Attorney General's Office or the Better
Business Bureau to see if any complaints have been
lodged against the company.
Be wary of a company that asks for money in advance to restore
your credit.
Other Credit Scams to Watch Out for:
Credit Protection Services - These agencies charge the consumer
for credit reporting information that, in many instances,
is available for free.
Guaranteed offers for Gold or Platinum
Cards - These offers
promise to build your credit rating, even if you have bad
credit. These cards can be used only when purchasing items
from the company’s catalogue.
Checking Account Debit Scams - In these scams, a con artist
contacts the consumer and reports fraudulent activity involving
the consumer's bank account. The con artist then asks for
the consumer's checking account number for verification purposes.
Inevitably, this leads to an unauthorized electronic bank
draft from that checking account.
Contact Us
Consumer Protection Division
501-682-2341
800-482-8982 (statewide)
501-682-8118 (fax)
consumer@ag.state.ar.us
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