Recently, I have been bombarded by Credit Repair Companies promising to increase by borrowers credit scores. These sometimes, Law Firms, are offerring me an Affiliate Fee for my referral of clients. The fees range anywhere from $35.00 to $300.00.
Likely, you are being marketed to as well. Let me give you some references and experience. All citizens of the US are protected under the FTC - Federal Trade Commission. There are clear laws and guidelines about credit reporting and strick laws governing Credit Repair, Debt Managment companies. Take a look at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.pdf
This is a PDF that you can print or email to clients regarding their own credit repair and things to watch out for with these companies. What is legal and what is not. First of all, they have to perform their service within 6 months of the time that you sign any contract. Second, they cannot collect or charge you any fees without performing their promised service.
Third, no one can change your credit score!! No one can have stuff deleted off of your credit report. Only you can do that for yourself. Under the law, it is illegal to have legitimate items removed off of your report, even if they are negative. I recently saw a company promising to remove Short Sales and Foreclosures off of reports. Sorry, no can do. Only the lender can do that, it just won't happen.
So if you are referring your precious clients that you worked hard to obtain and maintain. Don't send them to the sharks to be eaten alive!! Remember, upfront fees, membership fees, lump sum fees, all illegal. The FTC is busy these days and likely understaffed to keep up with regulating these clowns that are finding a new way to take advantage.
If you want to help your customers, download the PDF and show compassion and guide them to repair their own credit. They are likely to get more results on their own for free than anyone else can.
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