Unfortunately, PPI and consumer credit claims have become a common feature of the lending and insurance industries. Consumer credit claims come about when institutions go to great lengths to coerce customers to pay for services that the consumers do not really require. Credit claims can also come about when lending institutions make erroneous reporting about a customer’s credit status. These errors, also known as credit injury, can have a negative impact on the ability of a consumer to access credit.
Obviously every consumer who relies on credit strives to have good credit scores and they would do just about anything to clean up their credit reports. Unfortunately this has paved way for several agencies who scam unwitting consumers with the claim that they can clean consumer reports fast and at a low cost. Indeed there are genuine credit repair agencies who are guided by the Federal Credit Repair Organizations Act. This law stipulates what consumers should expect from a credit repair agency. First you should obtain from the credit repair agency a consumer credit rights file which outlines your rights to receive a credit report and to launch complaints about any credit reporting errors. You should also receive a contract from the agency indicating the types of services they are offering, what they will charge you and a clause that enable you to cancel the contract within three days.
Avoid a credit repair agency that will not provide its physical address, requires you to sign a contract before reading it, or wants to delete accurate information from your credit report. If you are the a victim of consumer credit repair scams, launch a complaint with your state’s attorney general’s office, the Federal Trade Commission and the Better Business Bureau. It is a good idea to check with the Better Business Bureau before dealing with any credit repair agency.