The Pitfalls of “Credit Repair”

In June 2023, the New York Times Sunday Magazine looked inside the chaotic world of “credit repair” companies. The feature tells the story-after-story of how bad credit can ruin people’s financial lives—pushing them to the brink, financially and psychologically. It reveals how credit scores have ties to serious racial and sociological inequity. It explores how the credit industry has largely evaded efforts to be limited or regulated in its ability to make money off selling American consumers’ information—sales that Americans have essentially little control over, while the bureaus financially benefit by hurting Americans’ financial well-being.

All of that is gut-wrenching, but what is perhaps the most stunning is the article’s portrayal of the “credit repair” industry—how individuals who seek help with credit problems are being exploited and robbed by the very people who are pretending to help them.

As the article explains, even those well-intentioned individuals who genuinely want to help people struggling with bad credit seem to have little-to-no training or expertise in accounting, document management, or even how to challenge credit reports. Yet they charge people already struggling with debt $100 or more monthly for credit services.

But things rapidly go downhill from there.

The article also reveals how many of the “credit repair” companies are, unbeknownst to their clients, using illegal tactics to address credit reports—such as falsifying statements to law enforcement as a way to challenge clients’ data.

Further, some of these companies are nothing more than scammers, defrauding clients and even stealing their data —committing identity theft when they were supposed to protect clients from it.

As the article addresses, there are various cases before federal agencies and some members of Congress discussing the need for reform. But there seems to be negligible progress on that front. In the meantime, individuals need to realize that the credit repair firms are not credentialed, unregulated, and—after all that, they aren’t even good at fixing someone’s credit.

That’s why it is so crucial to get competent representation from law firms such as The Credit Report Law Group.

The Credit Report Law Group is led by experienced licensed attorneys who are leaders in the credit reform community. They understand a consumer’s legal rights, so they can legitimately address errors in credit reports, debt harassment, identity theft, and more.

Another example of how unscrupulous “credit repair” companies operate is that they charge upfront without guaranteeing success. Legitimate advocates do not charge upfront. For example, the Credit Report Law Group takes most of its cases on a contingency basis, so clients don’t need to pay any money upfront—they only pay after a successful result.

While, as the New York Times reported, many credit repair companies rely on boilerplate complaints and deception to serve their clients, the Credit Report Law Group will carefully review your specific issues and develop a sound, effective legal strategy that best reflects your situation and needs.

That’s why, if you have had any issues with identity theft or other issues with incorrect information on your credit report, don’t risk a credit repair company. Instead, contact an attorney as soon as possible. The Credit Report Law Group can help you correct your credit record and obtain compensation for any damages you have sustained.