Ryan S. Wright Bankruptcy Law Blog on Lawyers.com

If it sounds too good to be true, it is. You cannot repair your credit without paying some portion of the bills in anyway except with an Indianapolis bankruptcy, or waiting enough years for the bad stuff to drop off (and hoping the creditors don’t sue). These “Credit Repair” companies are scams. You will be in a worse position after they "help" you.

The following are warning signs regarding Credit Repair scams:

• They want you to pay for their services upfront.

• They tell you not to contact the credit bureaus yourself.

• They don't tell you what your legal rights are. By law, they must give you a written copy of your consumer rights, a detailed written contract and 3 business days from when it was signed to cancel the contract.

• They promise to erase all of the negative information on your credit history. If the information is correct, only the creditor who reported it can remove it. Credit repair companies that offer to wipe your credit history clean are actually disputing all of the negative information on your report. If the Credit Report Agency verifies the information is correct, it stays on your report; if not, the information is removed. But while the information is being disputed, it's temporarily removed from your credit history, making your history look spotless even if it's not.

• They offer you a new Social Security Number. The Social Security Administration rarely gives out new Social Security Numbers, even with identity theft. They are actually filing for an Employer Identification Number (EIN), which is normally used to identify companies. This is called "File Segregation" and is illegal. You could be accused of committing fraud if you allow this to happen.

A new scam has also started cropping up. The company claims to be able to fix your Credit Score, not by disputing you owe a debt, but by disputing that the creditor can provide “verifiable proof they are required by law to have on the challenged account”. They make many claims that are not true, but the main claim about how their system works is that the Credit Reporting Agency is required by law to have copies of “same verifiable proof” as an original creditor, and, if they don’t, then they have to change your bad information to good information. This is nonsense.

Here are the claims made:

1. “We Can DELETE"ANY"(-Neg) INFO FROM CREDIT REPORT”---UNTRUE

2. “The system that we incorporate is Trademarked & Copyrighted. No other

company has the authority to use our proprietary system.” ------------------UNTRUE

3. “You simply have a right to receive a copy of the Original Creditors

Documentation that should be on file with the Credit Bureau.”-------------UNTRUE

4. “The credit bureaus are required by ‘law’ to have a copy of that same

verifiable proof.” ------------------------------------------------------------------UNTRUE

5. “Under the FCRA, they need to provide you a copy of verifiable documentation

if it is requested by you the consumer. ----------------------------------------UNTRUE

AND THE SUPER BEST NONSENSE WINNER:

6.“We have NEVER RECEIVED a single copy of verifiable proof on a single client account. NEVER!” combined with “We successfully delete or change over 90% of everything we dispute!”----If they never receive the required proof, then why aren’t they 100% successful? ALWAYS!

Don’t fall for “magic” scams. Contact The Law Offices of Ryan S Wright for Indianapolis bankruptcy help or help with your Indianapolis bankruptcy filing today!