Why would an honest consumer need credit repair services? Three words: unscrupulous collection practices. Despite hefty fines and sanctions from the FTC ($2.5 million in January against one debt collector alone), collection agencies continue to harass and use illegal debt collection practices to force consumers to pay up – even in cases where the consumer may not be responsible for the debt at all.
While credit repair services can’t get money back from debt collectors that you’ve already paid as Steven Milstein of Credit Zeal points out, if you choose a reputable company to assist you, you can get inaccurate information removed from your credit report – which makes it easier to avoid dealing with unscrupulous debt collectors.
Credit Repair Services Give Peace of Mind
One of the biggest burdens that credit repair services can relieve right away is the stress of dealing with multiple negative items and listings on three different credit bureaus. A reputable credit repair company can easily take over even the most complicated credit file and provide services to:
- Dispute inaccurate information
- Remove debts past the reporting limit
- Correct and update your file with the appropriate information
Given that a single collection account may be listed multiple times with various agencies and on different credit files – Equifax, Experian, or TransUnion – having a professional take care of the disputes ensures that your credit scores will go up across the board.
Good Credit Isn’t Enough
It only takes one collection account to drag your good credit scores down hundreds of points. Unscrupulous debt collection agencies may even seek out people with good credit for their scams because they know that these people are the ones most likely to pay up.
They may also target consumers with good credit in order to have more leverage to put pressure on them to pay up. An individual whose credit is already damaged may not care about an additional account, but an individual with a good credit rating is likely to pay just to keep it.
Having professional credit repair services to turn to when the laws get confusing or tricky is another way to stay ahead of the curve. While you may not realize the statute of limitations for suing on your old debts has passed, the collection agency most definitely will. If you aren’t careful, a payment made in good faith could open you up to a lawsuit.
If you get credit repair services from a lawyer or other credit repair specialist they will be able to keep you informed about the laws of your state so that you don’t inadvertently put yourself in a position to owe even more money than you already do.
Debt Collectors are Not Above the Law
Many times, debt collectors attempt to make us feel guilty and ashamed as part of their collection tactics. The FTC’s crackdown of their practices shows that debt collectors are far from above board in their collection attempts in many cases.
Don’t let debt collectors make you feel bad for turning to credit repair services in order to preserve your rights. It is in your best interests to hire a reputable credit repair company that can assist with getting inaccurate items removed from your credit report.
