With the tough economy and unemployment at an all-time high, it can be hard for us to stay current on our credit card payments, and we sometimes fall behind. It is then we realize that we cannot make the minimal payments, let alone the interest and fees that come along with falling behind. We then try to figure out what we can do to remedy this situation. The options are dismal: filing for bankruptcy or, as many think, the safer bet of credit counseling agencies. If you decide this is the best choice to turn your finances around, please be careful and cautious when choosing these companies. I would suggest searching the Federal Trade Commission at www.ftc.gov.

Generally speaking, credit reporting agencies cannot actually erase negative information from your credit report. Timely payments over time on any open credit that you have left can improve bad credit without illusions of miracle cures and massive fees. That doesn’t stop companies from claiming they can get rid of bad credit or do credit repair for bargain rates, making it seem almost irresistible. But refrain from acting hastily. With the rise in consumer complaints regarding the unscrupulous credit report repair impersonators, the FTC came up with stringent regulations on credit report repair agencies to keep consumers safe from further scams. Please be advised to make careful comparisons of companies before reaching a final decision.

Contact only those companies who are clear about their charges and share any information you seek. Use caution with any credit report repair agency that resembles a law firm but is not forthcoming about the complete names of attorneys and are obscure about the states where they have the license to practice.

These credit report repair companies often operate illegally. By consulting and following their guidance you are likely to find yourself on the wrong side of the law and liable for prosecution. Using your phone or the U.S. mail for credit applications with false details will put you at risk of federal indictment for wire or mail fraud which is a grave crime.

Self-education is crucial in regard to genuine, legal credit report repair to avoid landing in trouble. Firstly, the Credit Repair Organizations Act ensures that credit report repair companies are prohibited from insisting on payment for their services until they are completed and delivered. They are also forbidden from legally removing current and accurate details from your report according to the Fair Credit Reporting Act or FCRA.

Before making your choice of a credit report repair agency, take a few precautions. Consult the Better Business Bureau for a reliability report on the company and scrutinize their registration certificate. This will reveal any litigation initiated or complaints filed with any government authority of California, other states or the federal government and the way they were resolved.

Be crystal clear about exactly what the credit report repair agency is capable of doing and what it is not. By showing them your credit report you can find out from them the exact information they intend to alter or eliminate. As the law requires a written contract, all promises must be in writing. Also remember that should they promise to alter or erase any accurate information, you are being deceived.

There are other avenues besides credit counseling. You also have the option of nonprofit credit counseling organizations for getting help. They assist consumers in need of help for getting their finances in order.

These companies cannot report or make any statement, or counsel/advise any consumer to make any statement, which is untrue or misleading.
For further information consult the Federal Trade Commission.

This article is for information only and not to be taken as legal advice or counsel.
Karen Corbelli is a Redding-based legal document assistant armed with more than 20 years of legal experience. She can be reached at 530-515-5081 or kjparalegalservice@yahoo.com.