No Quick Fixes for Bad Credit
Friday, Jan 18, 2008
LITTLE ROCK— If you have less than perfect credit, you have probably received solicitations in the mail, heard radio spots or scene ads on T.V. from companies that offer to fix your credit for a fee. Often, such ads "guarantee" that they can wipe away your credit problems, making it easier for you to buy that new house, car or even get a new job. Unfortunately, there are no quick fixes for credit problems, and, accordingly, Attorney General Dustin McDaniel issued this consumer alert to warn consumers about credit repair schemes.
"Nobody can legally remove or adjust negative information on your credit report," said McDaniel. "The only thing that can fix a bad, but accurate, credit report is time, and, therefore, consumers should save their money and ignore credit repair offers that claim otherwise."
The following are warning signs that consumers should heed when dealing with credit repair companies:
- The company asks you to pay up front before any services are rendered;
- The company does not inform you of your legal rights or services you can perform
yourself, for free;
- The company advises you to dispute all the information in your credit report; and
- The company advises you not to contact a credit reporting agency directly.
There are three major credit reporting agencies—Experian, TransUnion and Equifax. Under the law, these consumer credit reporting agencies are allowed to report accurate negative information on your report for seven years and bankruptcy information for 10 years.
Consumers are entitled to receive a free copy of their credit report once a year. Additionally, you are entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. If you find inaccurate information on your credit report, you can dispute it under the Fair Credit Reporting Act (FCRA). For more information on your rights under the FCRA, visit the Federal Trade Commission's Web site, http://www.ftc.gov/, or call 1-877-FTC-HELP.
