The nation’s collective bad credit is leading many scam artists to take advantage of unsuspecting consumers by offering fraudulent “credit repair” services.
According to the Washington Post, many companies are defrauding honest borrowers in tough circumstances because of the economy. One case cited by the news source was that of “Clean Credit,” a Florida-based company that used national and local advertisements to trick buyers into providing them with tons of up-front fees.
The group promised to help make bad negative notices on credit reports disappear – even if the problems were legitimate. But after collecting $400 in fees, the company did little, if anything to help improve the scores, according to the court findings. Clean Credit was eventually reported to the Federal Trade Commission, who took the group to court, seized all of its assets, and set up a restitution fund for scam victims.
Fortunately, those with bad credit have access to a number of legitimate credit counseling services. They should also know that they can begin to improve their credit by securing a pre-approved car loan and making the payments on time every month.