Consumer Credit Services – Are They Real?
A consumer credit service company is defined as any individual or entity who acts on behalf of creditors, who purport to be able to improve or repair a consumer’s credit file, credit score or credit history. Some of them also offer consultancy services to help individuals develop a budget. Many consumers also turn to these companies for debt consolidation or management services. One such service is debt consolidation.
The services offered by consumer credit services vary with some of them claiming to be able to remove negative entries on a consumer’s credit file, freeze accounts, or clear them. However, most of them cannot guarantee any of these things because no creditor is willing to remove negative entries or even have them removed. There are several reasons why these companies are not allowed to promise such things.
First, a consumer credit services company cannot guarantee that a debtor will improve his or her credit history because it is impossible to do. To remove bad entries from a credit report or improve a credit history, a debtor needs to take the necessary steps. Good financial habits such as regular repayment of loans and payments are important aspects of good credit management.
Secondly, many consumers do not trust credit repair companies. They believe that these companies are out to get money from them and make their lives difficult. Many consumers are also wary of using consumer credit services because of unsavory firms who charge high fees in addition to offering low or no service. These firms that use unscrupulous methods to profit usually have nothing to offer except bad credit ratings to consumers.
The Fair Credit Reporting Act requires all nationwide consumer reporting agencies to provide you with a free credit report once every 12 months. This is why consumers need to know what the credit reporting agencies have on their files. In addition, they need to know how to get copies of their reports and why there are so many different things on their reports. Many consumers are surprised to see that there are many negative items on their reports that the credit service organizations simply choose to ignore.
In 2005, the state of California passed a law which prohibits consumers from being pressured into settling their debts for less than the full amount. If a firm pressures you into settling your account for less than what you actually owe, you can file a complaint with the state’s consumer affairs office. You can contact the United States district court or the United States attorney general’s office. If you file a complaint against a consumer credit services company, the attorney general can provide you with a list of lawyers practicing in the state of California that practice bankruptcy law.
There are many different types of consumer credit services, including debt management, debt settlement and consumer counseling. Debt management is a type of professional financial counseling that helps you establish a budget and pay off your unsecured bills. Debt settlement is the process of reducing the amount of money that you owe creditors. Consumer counseling is a type of financial counseling that helps people learn how to improve their spending habits and manage their finances in general.
Some of the best places to start if you feel you may be the victim of illegal or deceptive practices are the United States attorney general’s office, the consumer protection agency of the United States department of homeland security and the Better business Bureau. All three of these government agencies will help you find out what the problem is. Consumers can also contact the Better Business Bureau and write a consumer complaint about any type of debt counseling service that they feel isn’t working for them. Often, the best way to resolve a problem is to talk to someone who has been in the same situation as you are in. The Better business Bureau can offer assistance in resolving financial issues like debt settlement or bankruptcy.