Debt Settlement and Credit Repair Scams

Recently, we wrote about the difference between bankruptcy and debt settlement. Included in that post were several warnings about credit repair scams.

We’ve all seen the advertisements, which are typically full of empty promises. Far too often we receive phone calls from individuals or families that were taken advantage of by so called “debt settlement companies” because of the difficult situation they were in.

The Federal Trade Commission (FTC) recognizes this is a large problem and prepared a list of several “Credit Repair Scam” warning signs that we wanted to pass along. You’re likely encountering credit repair fraud if a debt settlement company:

1. insists you pay them money before they do any work on your behalf;
2. tells you not to contact the credit reporting companies directly;
3. tells you to dispute the information on your credit report – even if you know its accurate;
4. tells you to give false information on your applications for credit or a loan;
5. doesn’t or cannot explain your legal rights when they tell you what their services are and how they can help you.

Please be careful when consulting with any company that claims to give you a new credit identity or negotiate with your creditors on your behalf. As bankruptcy lawyers, we help families in Kansas and Missouri navigate the federal bankruptcy process, based on federal law, not empty promises.

You can find the entire Federal Trade Commission article outlining Credit Repair Scams here, as well as find out what options you have if you are a victim to one.

If you are dealing with overwhelming debt or facing foreclosure, we may be able to help you. We offer a free phone consultation at 816-281-6349.