Scammers that offer homeowner's ways in which to save their homes from foreclosure will often offer credit repair services. Oftentimes, credit repair is offered to get the victim to feel as if after the scammer gains title to their home, their credit will be cleaned up, which will lead to them becoming the homeowner again. In most instances, the victim will never get their credit repaired and the scammer disappears with the title to the home or the equity. Some credit repair scams may not come with a foreclosure rescue element. As a matter of fact, we have seen hundreds of credit repair scams that only involve the promise of repairing credit. Millions of mailings go out to Maryland residents everyday promising a way to fix or repair damaged credit. The truth is, if there is a valid mark on your credit, you may be stuck with it until the statute of limitations runs out on it. If there is an invalid mark on your credit, self help goes a long way. Know the laws for credit reporting agencies. Look under our "Resource Section" to read up on the laws for credit reporting.
Do not provide your proprietary information to a credit repair company. By giving a person your name, SSN, and date of birth, over the phone before determining if it is a valid business sets you up for future identity theft.
To determine if a credit repair company is valid, the business or individual MUST be licensed with the Department of Labor, Licensing and Regulation, and hold a license under the Maryland Credit Services Business Act (MCSBA). Log onto to http://www.dllr.state.md.us/finance/industry/licsearch.shtml and type in the name of the credit repair company to see if they are licensed to do business in the State of Maryland.
WHAT A CREDIT REPAIR COMPANY CANNOT DO
If the credit repair company asks you for upfront fees before all services have been provided, they are violating the MCSBA.
A credit repair company cannot make a statement or represent that it will provide a false or misleading statement to a consumer reporting agency, to do so would be a violation of the MCSBA.
A credit repair company may not make or use any false or misleading statements in their offer of services.
A credit repair company cannot create or assist in creating a new identity, which includes, but is not limited to: a new SSN, or Employer Identification Number (EIN).
WHAT A CREDIT REPAIR COMPANY MUST DO
Be licensed.
Provide a written contract that provides a detailed description of the services to be provided.
Provide consumers with written disclosures before entering the contract and before receiving any money. The disclosures must include information relating to the consumer’s rights.
Give the consumer a right to rescind or cancel the contract up to three days after the contract was entered into. For a full read of the MCSBA check the "Resource Section."
Credit Repair