Do you like to throw away money? Consumers are ripped off by companies promising to help people fix their financial problems by fixing the credit reports so that the bad information is not on the report. These companies promise to make bad credit go away. Remember, so long as the credit is reported correctly, no one can take bad credit off your report. Anyone who promises otherwise is lying to you. If this could be done, the Credit Bureaus would be out of business. The Credit Bureaus are huge operations that make lots of money. If no business can rely on the reports in giving loans, for cars, houses or even credit cards, no company will pay for their services. The credit bureaus are not going to allow themselves to be put out of business. The list of companies promising to do what cannot be done goes on and on. The Federal Trade Commission keeps slapping down companies and individuals who promise to fix your credit with fines and even jail time. New companies, people and schemes keep popping up all promising to make your bad credit go away. Anyone remember Whack a Mole?

 All of these companies want to be paid before they begin to work their “magic”. Why do you have to pay the company first? Because the company will not actually be able to perform as promised. Over and over again, these companies over promise and under deliver. When the companies are caught, they are shut down and any funds that can be taken are given back to the duped consumers.

 The owners of the companies are often using other people to act as if they own the company and take the fall when the business is closed and fines and penalties are assessed. The real owner then sets up a new business with a new front person and the game continues and sometimes one person will open multiple companies. Obviously, the profits are phenomenal or no one would be setting up these companies, risking fines and sometimes jail. There are always new suckers, consumers, to fleece. Debtors looking for the magic potion keep believing that they can somehow get around the rules. The information I am giving you is available at the web site operated by the Federal Trade Commission. In spite of all the available information, debtors still believe and pay for the magic potion or silver bullet that will magically fix their bad credit.

Honest companies such as Family Services cannot compete with these rip off companies because no honest company would ever make the promises being made. If you need to make money, just open a credit repair company. Just make the promises that you cannot make. Just open up a credit repair company and let the money roll in. Just watch the money roll in, until the government shuts you down.

 It is against the law for a credit repair agency to take money from you before they provide the services promised. The problem is, that the credit repair company cannot make money unless it gets paid up front. If a credit repair company asks for money up front, then you know the credit repair company is breaking the law. If a company is willing to break one law, why not another or another?

 How does a credit repair company work? It is really pretty simple. Whenever an objection to a credit report notation is issued, then the credit bureau must contact the company that made the report to verify if the information was correctly reported. If the creditor fails to respond to the inquiry from the credit bureau within 30 days, then the information is taken off the bureau records. Companies simply do not have the desire to spend large sums of money to keep up with the inquires from the Credit Bureau. Loans and accounts are sold many times over so the company that made the report often no longer owns the account and has no interest in reporting the status. In fact, it may be improper for a company that no longer owns the account to put down negative information. The information magically gets taken off the report and you are so happy you tell all your friends and neighbors. Sooner or later the new account owner will report the information again or the creditor who was slow to respond finally answers. The debtor does not go out and tell all of his friends that he was duped so the credit repair scams continue.

You file a complaint when you do not get a refund and by the time there are enough complaints to get the authorities to take action, your credit repair company is out of business.

 There are three credit bureaus, Equifax, Experian and Transunion. You can obtain free credit reports by contacting This is the only truly free report. You can get a free report once a year from each agency. I often advise my clients to get one from one of them every three months. By the time you get the third report, you are back to the first credit bureau three months later.

 Using a service to let you know when a negative notation is issued against your credit report is, in my opinion, a waste of money. If you are turned down for credit, then you are entitled to a copy of the report used to turn down the request. Always request a copy of the report if you are denied credit.  Why pay for what you can get for free?  

About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
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