Top five consumer credit scams
Date: Mon, 08/15/2005 - 16:51
Credit repair: There are some companies which offer repair of your credit report by removing all the negative information from the credit file. The Federal Trade Commission warns that any such company that claims removal of judgment, liens, and other unfavorable information from credit report and false. This negative information cannot be legally removed from a credit report.
Advance fee loans: – There are some companies who promise that they can grant loans to those with bad credit histories. The scammers falsely promise that for an advance payment, money will be sent to anyone irrespective of the credit history. These loans are never delivered.
Home equity: Unscrupulous lenders sometimes target consumers who have a good credit file but have cash flow problems. They insist them repeatedly to refinance their loan depending on the equity of the home. If you fail in making regular payments or don't have enough income, you might be at the risk of losing your home. There are many consumers who fall in the wrong hands.
Identity theft: This happens when the credit card numbers, social security numbers, mother's maiden names, or other personally-identifying information without one's knowledge are stolen to tap into the good credit histories of consumers. A new credit account is set, charge purchases, to existing accounts, or drain bank accounts. The consumers come to know about this identity theft when they get their latest bill of credit card accounts that they have never opened. They get to see the charges on their bills with which they were never familiar or even find their bank accounts fraudulently accessed.
File segregation: Some of the credit repair companies encourage the consumers having unfavorable credit history to obtain new taxpayer identification or employer identification numbers from the Internal Revenue Service under false pretenses and use them to hide their true credit identities from creditors. They charge a fee for the purpose of segregating their credit files. File segregation is illegal and consumers who employ it are committing a felony.
If there is a problem with any of the following scams, it is necessary to contact local consumer protection agency, state attorney general, or Better Business Bureau. You can also file complaints at the FTC toll free number at 877-FTC-HELP (382-4357) or writing to Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave., N.W., Washington, DC 20580. You can also use the FTC email complaint form at
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01
Regards
Roxette
This is very informative. I have had several arguments with my m
This is very informative. I have had several arguments with my mother in law about the credit repair scam. She claims to know so many people who have done it and I told her that it could not be done. That it was also illegal. I need to get her to join this site so that she can receive some good advice. My father actually lost his house because of the home equity loan. He refinance so that he could do additions to the house and have money to help with the bills because he was getting in over his head. And instead of coming to me or my brother to help he did the home equity loan. It was a shame too because he spent so many years trying to repair his credit.
Roxette, you seem to be very knowledgeable about this type of stuff. Where do you get your information from?
It's my pleasure that I can be of some use to you and the commun
It's my pleasure that I can be of some use to you and the community. I wish that you also should educate those people who really lack information and fall in the wrong hands.
Regards
Roxette