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Why Credit Repair Services May Not Be a Good Idea If You Are in Debt

Posted by James Aspell | May 14, 2020 | 0 Comments

 

With all of the craziness going on right now, It can feel like the whole world is against you when you have to struggle with debt. Creditors may be harassing you, your car may have been repossessed a time or two or a bank may even be calling about foreclosure. At times like these, you may reach out for any help you can get. But is that really what you should be doing now?

  • How do businesses take advantage of people dealing with debt?

Banks and financial services companies, often working without full regulation, may advertise credit repair services or offer to represent people in negotiation with creditors. Some of these companies may even acquire a list of debtors from reporting services or lenders and attempt to market their services directly.

  • What can go wrong with a credit repair service?

The truth is there is no easy fix for bad credit or mounting debt. Many of these firms are scammers that accomplish nothing after collecting hundreds or thousands of valuable dollars from people under financial pressure. And if they are successful, it's more than likely that they perpetrated a fraud.

  • How can I be sure if a service is a fraud?

Upfront payment may be a red flag, as the Credit Repair Organizations Act prohibits these companies with federal law from asking for full payment before services. Anyone who asks you to misrepresent personal or financial data may be roping you into committing a crime.

  • So, who can help deal with debt?

An attorney can always represent your needs when you are faced with debt and you seem to be facing insurmountable odds.. A lawyer may be able to find useful services to deal with debt or explore options like bankruptcy or consolidation.

About the Author

James Aspell

Principal since August 1, 2006 James F. Aspell is the principal and managing attorney of the firm which he started in 2006 following 20 years of litigation practice in a mid -size firm in Hartford, Connecticut. Jim focuses his practice in the areas of worker's compensation and personal injury l...

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