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Common Credit Repair Scams that Can Leave You Broke or In Jail - YouTube
Channel: Tiana B. Clewis
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hey dreamers and welcome back to my
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channel where we break down all things
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money so that you can use that money as
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a tool to create a life that you truly
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love and enjoy in this video we're
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talking about common credit repair scams
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and yes I know we've been talking about
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credit a lot lately which is super
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unusual but it keeps coming up in
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conversation so we got to talk about it
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here and so what we're gonna do is we
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got to talk about these credit repair
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scams because if you use the wrong
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credit repair company to fix your credit
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you can end up broke with a worse credit
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score or even in jail the reality is
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that for anyone that's not yet a
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millionaire or maybe working in real
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estate your credit score matters a lot
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and if you've had a history of late debt
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payments maxing out credit cards or even
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defaulting on loans your credit score
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may have taken a total nosedive that
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means you're paying more in interest
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then you have to for access to cash and
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that makes it so much harder to
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accumulate wealth so now millions of
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people are looking for someone to point
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them in the direction of a quick fix for
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their credit score this is why credit
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repair scams are now running rampant I
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see people on social media all the time
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making claims that they can help you
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increase your credit score all the way
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to maybe even a perfect credit score of
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over 800 now don't get me wrong some
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credit repair companies are legit but
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there are many opportunites out there
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that are taking advantage of desperate
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people that don't know how credit works
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or don't understand what the rights are
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well that's where I come in so let's are
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unearthing some of these common scams so
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that you can keep your money and your
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future safe now wait a second before we
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dive into the scamming foolishness of
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some of these so-called credit repair
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agencies let me introduce myself to the
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newbies of the channel I'm Tiana B Lewis
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a financial lifestyle coach who has made
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it her business to help women
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entrepreneurs use money as a tool to
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help them escape that 9 to 5 grind you
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know that grind that sucks the soul out
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of you so that you can now use money as
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a tool to build a life worth living it's
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something that I've been living out each
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every day so if you want to join me on
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this mission go ahead and like this
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video and subscribe to my channel below
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then hit the bell to make sure that
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you're notified
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every time I drop new videos every
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Wednesday and Saturday okay so now let's
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get back to the subject of hand these
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credit repair scams the first scam I
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want you to be on the lookout for and
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the one that's probably the most common
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is the scam where they tell you that
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they're just gonna dispute absolutely
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everything many of these companies are
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going to tell you that there is a way to
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dispute each and every item on your
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credit report and that's just not true
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what they're referencing many times when
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they talk about this is the Fair Credit
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Reporting Act which does say that you
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can dispute things on your credit report
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however there are stipulations on the
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type of things you can dispute you can
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dispute something that's completely
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false
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you can spew something that's inaccurate
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or that's a complete you can also
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dispute anything that cannot be verified
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and that's the loophole that many of
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these companies try to use to tell you
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hey if we just dispute everything then
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maybe there's something that they won't
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be able to show is verified they won't
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be able to show those signature on the
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contract to show that this is a
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legitimate debt and then we can get it
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taken off of your credit score or your
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credit report the reality is that
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disputing everything on your credit
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report even the things you know for a
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fact should be there is unethical and
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it's a fraudulent act and I'm never
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gonna tell you to do something that
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constitutes fraud yeah many of these
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companies will convince you that it's
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a-okay it's no big deal because they
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should have kept the paperwork and yes
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it's true they should have kept the
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paperwork but you signed up for the day
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you agreed to the dead you said you were
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going to do these things and yeah you
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did miss the payment you did default on
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the loan you did stop paying them it's
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just the reality of the situation so I
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know it can be very tempting to say nope
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take it off because I don't want it
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there but if it's real if it's
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legitimate if it's accurate then well
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you should be taking a responsibility
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for that debt and the moment it gets
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taken off just because they didn't keep
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the paperwork is the moment that you are
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now lying on your credit report and to
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everyone that has to make a decision
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based on it another scam is when they
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tell you to stop paying your debts
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because they want you
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to pay them and they will pay the debts
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for you now this one can be a little
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obvious the truth is there's many
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companies that when they tell you this
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they don't pay the debts they just take
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your money and they run they disappear
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all of a sudden they're not answering
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the number that you've been calling the
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emails start bouncing back you can't get
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anyone on the phone all you can ever get
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is a voicemail box that's probably full
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because they haven't been checking in
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this scam has gotten a lot of people and
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has jacked many many people for lots and
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lots of money instead of you giving them
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complete control over your debts and how
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your debts are paid they need to be
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working with you as a partner they
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should be helping you stay on time with
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your debt payments they should be
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helping you figure out how much money
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you should be giving to this company
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should I be making a phone call to that
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company to create some sort of
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settlement they should be helping you
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with those things they shouldn't just
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say give me all the money and we'll make
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the payments for you that's a very
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dangerous game they need to be your
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partner they need to be educating you
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and in fact if they're not being your
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partner if they're not educating you
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they're actually setting you up for
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failure because what's going to happen
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is that you've gotten used to them
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taking care of your debt so that your
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credit score goes up and then when your
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credit score is where you wanted to be
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you have not changed your behavior and
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because your behavior has not changed
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you're probably going to end up right
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back in the same position that you were
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when you got that credit repair company
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you might even be in a worse financial
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position because your behavior has not
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changed and you go Wilin I've seen it
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many many times people do it when it
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comes to debt with credit cards for
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example you hear about debt
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consolidation loans or you take all of
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the money off of your credit cards you
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put it on this loan but then you don't
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cross the credit cards and then you're
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like paying off that debt consolidation
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loan but then you start racking up the
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debts on the credit card same concept
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applies here you're in a worse financial
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situation because you never changed your
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behavior so one you run the risk of them
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running away with your money and not
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actually paying the debts which can give
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you a worse credit score but then you
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also run the risk that even if they are
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legit they're not educating
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you they're not teaching you how to do
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this on your own and you're ultimately
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going to end up probably back in the
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same position or in a worse position
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later on because your behavior never
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change and you did the same foolishness
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that got you in trouble in the first
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place so if they tell you to stop paying
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all your debts and to paint them instead
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cuz they'll pay it for you know that
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that's a scam and even if it's not
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actually a scam even if they are
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actually going to pay the debts for you
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it's going to be something that's gonna
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be detrimental for you in the end
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because your behavior has not made the
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necessary changes to protect yourself
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from needing them again in the future
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now the next scam and I have to admit
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this one can be really really tempting
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what they'll do is they'll tell you that
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they are going to get you a brand new
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social security number a brand new
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identity and you can just start over
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with brand new and fresh credit tell me
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that's not tempting to you who doesn't
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want to start over you look at the
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message you've made with your finances
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the mess you've made which are credit
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and you wish you could just wipe the
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entire slate clean and just be free in
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fact if you've ever looked at your
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credit and said I want a do-over let me
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know in the comments by typing just that
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I want a do-over the idea of giving you
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a new social security number and a new
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identity is all about just having that
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clean slate you have no credit history
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there is nothing good there's nothing
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bad you can just start over with brand
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new habits that are good habits we had
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our positive habits to build your credit
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score the way that you want it to look
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and on top of that when the other
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companies are trying to track you down
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Trace you down they can't find you
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because you're a totally different
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person right the problem is that is 100%
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ill legal and it can land you in jail it
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is a form of a fraud and even worse
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they're offered to do that for you is in
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complete violation of the credit repair
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organization Act which is an act that
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governs how credit repair companies and
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credit repair agencies are able to help
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you how they can represent you what
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strategies they can and cannot use and
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this is one of the ones that they can
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not use they cannot offer to give you a
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brand new identity because it's fraud
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plain and simple so if they're telling
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you that they're going to get you a new
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identity you're gonna get a new social
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security number that they're just gonna
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wipe the slate clean and you're gonna
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start over this is a scam and it is a
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legal act that can land you in jail girl
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don't do it okay just don't do it do not
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even give this a try because if the
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government decides to come after you if
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one of those companies that you owe
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money to can find you and they report
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you you could end up in jail and I do
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not want that for you
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now another scam is when you come across
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a credit repair company that demands
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some sort of large payment upfront and
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this one is a little interesting because
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it seems like it makes sense from a
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business standpoint if I'm going to help
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you do something that will ultimately
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save you thousands of dollars over your
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lifetime maybe even millions of dollars
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depending on what you're able to do it
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makes sense that I would want to charge
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you a large fee upfront right the
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problem is too many of these companies
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were going out there charging large
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upfront fees and running away with the
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money so what they did with this Credit
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Repair Organizations Act the one that I
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mentioned a few the one that I mentioned
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a few moments ago they decided nope no
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more of that you cannot charge a large
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upfront fee we don't want you to take
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all these people's money and then run
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away before you've even rendered any
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services no we want to make sure that
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these people are getting the services
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that you're promising because people
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need their credit when you actually read
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the credit repair organization Act it
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talks about the reason why it's so
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important for people to be able to fix
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their credit to be protected against
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companies trying to do this it
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specifically says that in the law in
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fact if you want to go read the law go
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ahead and pop into the description below
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I have the link down there for you it's
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really short don't worry it's not going
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to take you a long time to read but if
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you look at that top part it
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specifically says why this is so
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important to protect consumers from
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these credit repair agencies that would
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take advantage of them and this is one
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of the ways that agencies were take
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advantage of people and so this act was
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used to put a stop to it so if they are
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demanding an upfront fee of any kind it
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doesn't even have to be a big one it can
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be a small one but if they're demanding
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an upfront fee to render services to you
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to help you repair your credit guess
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what they are in violation of the law
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you can report them and you know for
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sure that they're not functioning the
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way they are supposed to which now means
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it's a scam the fifth and final scam
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that I want to cover is when they tell
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you to stop paying on debts that they
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have successfully removed from your
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credit report now this one it seems like
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a they gotta take it off I don't have to
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pay it anymore
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well not really that's actually not
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quite how it works remember according to
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the Fair Credit Reporting Act you can
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have something removed from your credit
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report that's inaccurate that's
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incomplete that's false
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but clue in on the inaccurate and
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complete or maybe they didn't keep the
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paperwork and they didn't verify it in
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the appropriate time line the thing is
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just because it was removed from your
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credit report doesn't mean you don't
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still owe the money so what these
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companies are able to do is they're
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actually able to go to the courts and to
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sue you and say hey she owes me this
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money he owes me this amount of money
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for a contract that we had for a loan
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that I gave them for a line of Krait
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that I extended them and they never paid
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so the judge says hey you never paid you
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owe them this money I'm gonna garnish
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your wages I'm gonna take your taxes I'm
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gonna do whatever they are going to
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render a judgment against you and now
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you're still stuck paying this money to
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these people who you stopped paid
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because you thought that because it's no
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longer on your credit you're good to go
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a lot of these companies will not tell
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you that fact so if you just stopped
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paying on any debt that they've
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successfully removed you can easily find
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yourself in a situation where you end up
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with a where you end up with a court
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judgment against you but also there's
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the reality that they can put it back on
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your credits yeah I said that they can
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actually put it back on your credit just
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because they took it off
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I mean that they can't put it back on
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there all you have to do is start
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reporting on it again and so if they
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start reporting on it begin and you
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haven't paid that debt and three four
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five months now you find yourself in a
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situation where you have even more
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missed payments you have even more late
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payments and it makes your credit score
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go down even more what they need to be
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doing is they need to be telling you
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what do you do with these debts that are
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successfully removed how are we gonna
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handle it what is our strategy they need
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to be talking to you about that
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but if they just flat-out say well don't
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pay them anymore you're good to go and
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they don't mention the fact that it
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can't appear back on your credit report
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they don't mention the fact that these
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companies can take you to court well huh
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it's a scam because they don't want you
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to know that information they just want
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you to pay them and then they can
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artificially boost your credit score for
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a little while and you're happy you've
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given them money you walk away and then
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you get messed over down the road
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because these things hit that they never
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educated you on they should be helping
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you with these strategies and if they're
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not giving you this information they're
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not telling you what to do about these
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things it's a scam or at least at a
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minimum they don't know what that you're
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doing I'm just saying
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and boom there you have it five common
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credit repair scams that you definitely
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want to dodge now if you are thinking of
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using a credit repair company to boost
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your credit score make sure that you
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save this video so that you can refer
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back to it later or if you know someone
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who's talking about doing that be sure
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to share this video with them because
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this is information that they need to
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know in their shopping process for
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credit repair companies now also I have
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to let you know that this Saturday I'm
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dropping another video that's going to
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cover nine red flags that you should be
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looking for so that you can protect
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yourself and others from these credit
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repair scams now if you happen to come
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across this video because you were
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already googling credit repair companies
[912]
you were researching them you're playing
[914]
on hiring one ASAP you can skip ahead
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and get that list now by downloading
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episode 95 of The Dreamers financial
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playbook podcast where ever you like to
[923]
listen the podcast simply fast forward
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to roughly halfway through the episode
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and there you go you can get the 9
[930]
at flag that you should be looking for
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you can find links to the dreamers
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financial play-doh podcast on itunes
[935]
google play i heart radio and more in
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the description below now before you
[940]
were an off the dreamers financial
[941]
playbook let me know that you found this
[943]
video helpful by hitting the thumbs up
[945]
below and subscribing to my channel
[947]
don't forget to hit the bell so that
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you're notified when I drop the nine red
[951]
flags to look for this Saturday finally
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if you're looking to learn more about
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your credit score how it's calculated
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and how you can get it to go up here are
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two more videos that you definitely want
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to check out now with that I'll see you
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on Saturday bye bye
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[Music]
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you
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