One of the biggest concerns that many people have when filing for bankruptcy is the negative impact it has on their credit score. Unfortunately, people who are in dire financial situations such as a bankruptcy may be vulnerable to scams from fake companies claiming that they will repair your credit for a certain price. It is important to be aware of these companies and the additional harm they can bring to your financial status.
There are a number of ways that you can tell if you are the victim of a credit repair scam. These include companies that require you to give them money before actually doing anything for you, telling you that you shouldn’t contact the actual credit reporting companies, and directing you to lie about the information that you put on loan applications.
Another important thing to look out for is companies that tell you they will provide you with a New Credit Identity. They may use stolen Social Security Numbers and administer them to you. This can result in you getting charged with identity theft, which can be a felony crime. The Federal Trade Commission regulates credit repair companies and requires them to explain to all potential customers how much you will have to pay, how long results to take, and they must provide you with a written contract that informs you of your legal rights and what the company will do for you. These are covered under the Credit Repair Organization Act.
If you believe that you have been the victim of credit repair fraud, you should report it to the New Jersey state Attorney General as well as the Federal Trade Commission. Contact an experienced attorney who can assist you during this difficult time.
Juan C. Velasco, Esq. is a trusted attorney for bankruptcy, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.