For every company out there doing legal and ethical credit repair, there are numerous companies out there that are running illegal scams.  Every industry has sleazy and unethical practitioners but over the last decade, credit repair has been a major focus of many federal and state agencies and governments.  Most states have laws to protect the general public to warn and educate the average person against the scams that are out there.  The Credit Repair Organizations Act is a federal law that governs credit repair companies and many states have made their adjustments and amendments by drafting their own version of the law.

Unfortunately, the bad companies have but a huge black eye on our industry.  Keep in mind that not all credit repair companies are scams or illegal.  Keep a look out for these tell tale signs of the companies that may be after just your money:

• Companies that state:
  • We can erase your bad credit — 100% guaranteed!
  • Create a new credit identity — legally!
  • We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!
• Beware of companies that:
  • do not tell you your legal rights and what you can do for yourself for free.
  • that suggest that you try to invent a “new” credit identity.

Truth is no one can remove accurate and timely information.  Furthermore, no company can guarantee removal of any information in your credit report.  However, all information that is obsolete, inaccurate, unverifiable, and invalidated must be removed from your credit report.  Those are part of what was set forth by the Federal Trade Commission. If you do decide to use a credit repair company, like The Credit Repair Guys, be sure that the company:

• gives you a contract that states:
  • the payment terms for services, including their total cost;
  • a detailed description of the services to be performed;
  • how long it will take to achieve the results;
  • any guarantees they offer;
  • offer you a 3-day waiting period that gives you a chance to cancel the contract;
  • the company’s name and business address.
• doesn't make false claims about their services.
• perform any services until after you signed a contract and have completed the 3-day waiting period.

Each state is different.  Some states require that you obtain a license and surety bond and some do not.  Each state has different laws and guidelines set up for credit repair companies.  Ultimately, responsibility is yours.  Do your due diligence and research the company.  If you feel that they do not have your best intentions, go with your gut and call someone else.  After all, ultimately it's your credit report and you need to make sure that the company you use is someone you trust and count on.