BBB study on credit repair, debt consolidation companies | Birmingham AL

BBB STUDY: ARE THEY CREDITABLE? A STUDY OF THE CREDIT REPAIR AND DEBT SETTLEMENT INDUSTRIES, COMPLAINTS, LAWS & ENFORCEMENT

According to complaints filed with the St. Louis BBB, 85% say they received no services from the credit repair companies despite paying an average of $816 each and most received no refunds.

The BBB recommends the following to consumers looking to clean up their credit reports:

Follow the FTC advice.  Do not hire credit repair companies.  Only outdated or inaccurate information can be removed from a credit report.

Consider a trustworthy not-for-profit organization to resolve debt and credit problems.

Scrutinize a debt settlement contract and thoroughly check out a company you are considering doing business with the BBB, FTC or attorney general’s office.

source:  http://www.ksdk.com/news/article/315125/3/BBB-study-on-credit-repair-debt-consolidation-companies

 

BBB Study: Consumers Pay Scammers Thousands

For Credit Repair They Could Do Themselves For

Nothing

Beleaguered consumers deep in debt are paying thousands of dollars to scammers to modify their credit report, a process known as credit repair, when they can do the same thing at little or no cost themselves, a St. Louis Better Business Bureaustudy reveals.

The study, released today, is titled “Are They Creditable? A Study of the Credit Repair and Debt Settlement Industries, Complaints, Laws & Enforcement.”

The study notes that credit repair involves an offer to erase negative information from a consumer’s credit report, while debt settlement is an effort to reduce a consumer’s debts or monthly payments through negotiations with the creditors.

The study makes the following recommendations:

  • That consumers follow the FTC advice and not hire credit repair companies.  Only outdated or inaccurate information can be removed from a credit report.
  • That consumers consider a trustworthy not-for-profit organization to resolve their debt and credit problems.
  • That consumers scrutinize a debt settlement contract and thoroughly check out a company with which he or she is considering doing business with the BBB, FTC or attorney general’s office.
  • That federal and state authorities increase their efforts in rooting out the unscrupulous operators in both the credit repair and debt settlement industries.
  • That consumer-oriented agencies increase their efforts to educate consumers of the pitfalls in seeking help with their debt or credit.

Read more: http://interact.stltoday.com/pr/business/PR04121210388771#ixzz1rt1SAoIt

Learn Credit Repair Secrets The Banks Doesn’t Want Revealed:  Credit Repair BBB

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