CREDIT REPAIR SCAMS
Credit related scams rank high among consumers who have fallen on hard times, are suffering from debt or struggling
to make ends meet. These individuals are especially susceptible because of their desire to improve on their situtation,
often at all costs. Operators of these types of scams know this and will attempt to use a consumers fragile state to their
advantage.
One of the most common types of credit related scams deals with the extension of a "guaranteed" loan or credit card to an individual regardless of their credit history. To do this however, the consumer must pay a fee and in most cases the consumer never receives the credit card or the loan. Experts recommend you use your money to obtain a "secured" credit card through your bank which is guaranteed by money in your bank account. If you can't pay your bill then the money in your account is simply used for that purpose. Over time and with on-time payments, you should slowly build good credit and may qualify for a non-secured credit card.
Another common scam related to your credit is credit card insurance and individuals or companies who offer this option are preying on the fear that you may fall victim to identity theft or credit card fraud. Allegedly, this insurance covers you from unauthorized charges or use of your cards. The insurance however is not needed or recommended because federal law limits your liability in cases of credit card fraud and identity theft to $50. In most cases, companies will not even make you pay that if you dispute the charges and provide paperwork in a timely fashion.
Scams to repair your credit score and improve your chances of getting credit cards or loans are yet another common tactic in the industry. Companies who offer this service are attempting to improve your score for hundreds of dollars, sometimes using backhanded tricks and tactics. Credit reporting agencies however have taken steps to counter these disputes and false claims.
The Federal Trade Commission recommends hard work and diligence to pay down debt and get back on the right financial track.
One of the most common types of credit related scams deals with the extension of a "guaranteed" loan or credit card to an individual regardless of their credit history. To do this however, the consumer must pay a fee and in most cases the consumer never receives the credit card or the loan. Experts recommend you use your money to obtain a "secured" credit card through your bank which is guaranteed by money in your bank account. If you can't pay your bill then the money in your account is simply used for that purpose. Over time and with on-time payments, you should slowly build good credit and may qualify for a non-secured credit card.
Another common scam related to your credit is credit card insurance and individuals or companies who offer this option are preying on the fear that you may fall victim to identity theft or credit card fraud. Allegedly, this insurance covers you from unauthorized charges or use of your cards. The insurance however is not needed or recommended because federal law limits your liability in cases of credit card fraud and identity theft to $50. In most cases, companies will not even make you pay that if you dispute the charges and provide paperwork in a timely fashion.
Scams to repair your credit score and improve your chances of getting credit cards or loans are yet another common tactic in the industry. Companies who offer this service are attempting to improve your score for hundreds of dollars, sometimes using backhanded tricks and tactics. Credit reporting agencies however have taken steps to counter these disputes and false claims.
The Federal Trade Commission recommends hard work and diligence to pay down debt and get back on the right financial track.
www.richmondIDtheft.com
The Metro-Richmond Identity Theft Task Force is a cooperative effort
Click HERE for a complete list of scams and other fraudulent activity.
of federal, state, county and local law enforcement agencies working together to address
the growing problem of financial crimes. The task force is run under the direction of the
United States Postal Inspection Service.