Credit Repair Group To Pay $1.7m
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Easy Tips
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Friday, 27 July 2018
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Credit Tips
ASIC alleged that Malouf Group’s sales tactics misrepresented the services that it offers to customers, and failed to ascertain if the consumer had negative listings or if any negative listings were able to be removed. The making of false representations on websites operated by Malouf Group as to its standing as a credit repair company.
The display of false testimonials on the Malouf Group websites. The making of false representations as to Malouf Group’s ability to clean up a consumer’s credit history. The making of false representations in Malouf Group’s sales scripts about the work Malouf Group had done for the consumer prior to the payment of Malouf Group fee.
This is done yourself by sending a dispute letter to the credit bureaus or you can hire a credit repair firm to handle the dispute process on your behalf. If you decide to dispute the listing yourself you must send a dispute letter to each credit bureau. The dispute letter says that you are disputing the listing because the information is wrong, you have never paid late, it is not your account, etcetera.
2. You can come to a settlement agreement with NCO Financial. However I would suggest disputing the listing first. If that does not work then consider making a settlement offer. You do not have to pay the full balance with your settlement. I would suggest starting your offer at 50% of the balance of the outstanding debt.
You should have NCO Financial agree in writing to remove the negative listing on your credit report as part of the settlement agreement. If you do not do this paying the debt will not help your credit score. The listing will remain it will just be changed to a paid collection.
You should know that NCO Financial may not be the only person that creates a negative listing on your credit report for this account. The original creditor probably has created a negative listing for this account also. It is common practice for collection agencies to sell accounts they have not been able to recover payment on. You may also have another collection agency on your credit report that has created a negative listing for this account too.
If your account is being reported by multiple agencies then I suggest hiring a professional credit repair company. This is a good idea because by paying one agency it will not remove all the negative listings. If the debt is legitimate and you decide to settle do not pay the full balance. Collection agencies buy delinquent accounts for pennies on the dollar.
If you pay the full amount you will be giving the collection agency a big profit. Also do not be fooled into believing that NCO has the authority to remove a negative listing from the creditor or another collection agency. Keep all communication with NCO in writing. Just in case there is a problem you have written proof of your settlement agreement. In sum, you should first dispute the listing. If unsuccessful come to a settlement agreement with NCO Financial and have them agree in writing to remove the negative listing in exchange for payment.
When your credit is in shambles, of course you want to clean it up. Be careful though, whom you ask for help. Recently, the Consumer Financial Protection Bureau filed two complaints and proposed final judgments in federal court against four California-based credit-repair companies and three individuals for misleading customers and charging illegal fees. Not only did the companies charge illegal advance fees for credit repair services, but also misrepresented their ability to repair peoples’ credit scores.
When it comes to “credit repair,” keep the following in mind. “Be cautious. Do your research, or you can fall victim to a scam and plunge yourself into deeper financial trouble,” says Leslie Tayne, a Melville attorney specializing in financial issues. Ask basic questions — how long have you been in business,