Court Order Shuts Down Montgomery Credit Repair Company
By
Easy Tips
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Tuesday, 24 July 2018
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Credit Tips
Attorney General Marshall said, “These defendants conducted their business in flagrant disregard of the law and without concern for providing an honest and worthwhile service to their customers. Scott’s Credit Repair operated in Montgomery, and around the state, and is alleged to have frequently deceived and defrauded consumers as a matter of course.
First, the defendants would rein in consumers with advertisements claiming that, if they hired the company, they would be able to buy new homes or new cars. Defendants also paid a customer to post a positive message about the business on social media. The customer then made a false post claiming the defendants had helped her buy a new car at a good interest rate, and although fully aware that the post was false, the defendants reposted it multiple times.
In addition, the defendants made promises that they could improve some customers’ credit scores to levels of more than 700 even though they could not possibly guarantee that result. The Attorney General’s complaint also states that evidence gathered during the investigation indicated that the defendants commonly used a practice called “jamming” to create the illusion of improved credit.
They would automatically and indiscriminately dispute most if not all negative items in someone’s credit report, without any input from the consumer about what was accurate or not. They apparently intended this to result in the removal of negative items while the matters were investigated, causing the customer’s credit scores to temporarily rise until the items were investigated and verified. And in some cases, the defendants would simply fabricate stories that the consumers had been victims of identity theft, without those consumers’ knowledge or consent, in order to have negative items removed from their credit reports.
The amount and manner in which payments were collected also was illegal, the complaint states. Contrary to law, the defendants required their customers to pay for services in advance. The defendants also charged many customers higher fees than those they advertised, for no legitimate reason. In another case, Mr. Scott illegally refused to permit one customer to cancel the business’s services within the three-day period allowed by law, telling her that she could not cancel because he had already started working on her case.
The credit companies treat the customers who are perpetually in debt but have never defaulted on the minimum payments. If you have a good and adequate credit score, then it is wise not to apply for new credit cards, even if it offers a good discount for new customers. Each new account can hurt your credit score, if it is not put to use wisely. Again, closing accounts can also be detrimental to your score. Therefore, remember to apply for a new credit account only if there is a need for it.
If you are neck-deep in debt, it is advisable to meet a credit counselor for credit counseling. There are many nonprofit credit agencies such as 'Consumer Credit Counseling Service' that help you out to formulate a debt repayment plan and provide debt counseling. Another option to improve your credit score, in case of high-interest debt, is to go for a debt consolidation loan.
Appearing for credit counseling is considered as a positive trait and the credit counseling references are removed from the credit report, once you are free of debt. This means there are no long-lasting entries of your debts, in your credit history. A survey conducted by FICO reveals that the people who approach a professional credit counselor for help, have been able to repay the credit, without defaulting or filing for bankruptcy.
Prior to approaching a credit counseling agency, check out the authenticity and the credibility of the counseling firms. Do not pay the credit-counseling firms, unless your contract with them is over. A credit-counseling firm would have to give you a written statement about their terms and conditions and also the services offered by them.
Filing for a bankruptcy should be your last resort. Do it only if you are badly in debt and have many black marks on your credit. When you file for bankruptcy, you could lose 200 points. This would affect the credit score if you have a score above 650. However, if you have multiple delinquencies and lapses in your credit report and if you have score below 620, it would not affect you much. When you file for bankruptcy, the credit score will fall below 620 and obtaining credit with a favorable rate would become difficult.
In short, the credit would become more expensive. You would also need to understand, the credit report becomes blemished for next ten years. Do not hesitate to meet a good and reputed credit counselor once you know you have a poor credit score and you are not in a financial position to repair it. Remember, if a credit counselor asks you to file for a bankruptcy, take time out to cross-check with another credit counselor.
Many of the profit-making agencies would be keen on filing for bankruptcy than on helping you to apply for debt consolidation loan. To sum up, take into consideration the points given above while trying to improve your credit score. Credit score can be improved if you are organized and disciplined enough to follow a stringent repayment plan.
Warning signs for credit repair scams include companies that ask you to pay before providing services. The company may tell you it can guarantee a specific increase in your credit score or get rid of negative credit information in your credit report, even though the information is accurate and current.
Pressures you to pay up-front fees. The company wants you to pay before it provides any services. Promises to remove negative information from your credit report. The company tells you it can get rid of the negative credit information, even if that information is accurate and current. No one can do this.