Watch out for individuals claiming that they can perform credit repair services to increase your FICO scores so you can purchase a home. Don’t do it! Don’t believe it! It’s a SCAM! This information is provided based on reports obtained through individuals recently victimized in and around the city of Indio, CA.
How do these fraudsters convince you to turn over your hard earned money?
a. These crooks will prey upon their own kind. The Hispanic community tends to trust other Hispanics, especially those who appear to be very experienced and “father-like”. A smooth con will attempt to provide you with a sense of ease and comfort in a situation that should cause you apprehension and fear. It is that “fear” that these crooks prey upon.
b. They provide you with a series of success stories on how they were able to perform a “home purchase miracle” when no one else could. As you listen to the stories of their ability to place families into homes in less than 30-60 days by using their guaranteed and proven plan, you will begin to listen more intently without noticing that they are casting their net upon you, pulling you into their web of deceit.
c. The crooks operate their schemes in a relaxed atmosphere like public swap meets and festivals where an individual might attend as a FREE day for the family to spend time together looking at exhibits, vendors, eating food of all sorts, collecting free samples, receiving free neck messages and balloons for the kids. You are happy, comfortable and speak more freely than you would under different circumstances.
d. You will notice other people surrounding these fraudsters, listening intently to how they perform their tricks. If other people appear interested then it could create the illusion that their operation might actually work.
e. Just like the others before you, you also sign up for a phone appointment to get this program started to begin your path towards home ownership. If it all sounds too good to be true, then it usually is. Listen to your gut instinct.
f. The Hispanic communities located in economically challenged areas hit hard by the recession are ripe for this type of crime. Many do not speak English very well, if at all. They can communicate with these thieves in their natural language which appeals to their overall sense of trust and belief that what these crooks are saying is true. The victims begin to overlook the red flags as their instinctive sense of caution comes down.
g. Just because someone speaks Spanish and may share the same or a similar background with you does not mean that you can or should trust them. Scammers are experts in fraud and gaining a victim’s confidence. When you believe you have common interests with someone and believe in the same faiths and traditions, you are more inclined to trust and ultimately be taken advantage of. Quite simply, verify, verify, and then verify again before you trust anyone with your family and your money.
h. The thieves have a well thought out plan in their selection of venues to operate from preferring to operate at small swap meets or outdoor festivals. The less fortunate, out of work, God fearing husband and father is tempted by his thoughts of a better home and life for his struggling family. The victims will pool their money together to pay the thousands of dollars needed to provide a better home for their families.
i. Many victims do not own a computer or use the internet as a source of information to verify the credentials of the crooks. Many do not speak English well enough to communicate the crime to the proper authorities or choose not to for fear of appearing ignorant or irresponsible. Or when the crime is finally reported, the thieves have closed up shop never to be heard from again.
j. Victims of mortgage, credit, loan modification or real estate related crimes pay thousands of dollars up front and in advance of any services provided which in itself is a crime. Both the California and Federal Acts contain requirements for consumer disclosures, written contracts, and numerous protections against false and misleading statements. They also both contain prohibitions against charging or receiving any money or other consideration before fully performing the credit repair services the “repairer” has agreed to perform. Stated otherwise, both the California and Federal laws preclude the collection of “advance fees” for credit repair services. Under almost every circumstance, do not pay for financial related services before they have been performed.
k. The contracts provided, if any, are typically copied from other related service companies. The agreements are not dated or signed by the fraudster promising the services and little to no contact information is provided. There is no state licensing number. They will “forget” to provide you with a copy of the signed contract when you leave. Never sign a contract without receiving a copy of what you signed immediately to take with you. Review the contract for blank spaces or empty lines that could be filled in later by the criminal. Do not sign a contract written in a foreign language or without a proper translator. The contract should be signed by all parties with a clear understanding of the duties to be performed, the cost of the service, how it will be collected, what you can do in the event you choose to cancel and what the refund policy is. You will never be able to collect your money in a court of law if you don’t have any documents to prove that the terms of your agreement were breached.
l. The thief will tell you that they will call you as soon as the victim’s credit score is high enough to purchase a home, typically within the next 30-60 days, which will NEVER happen. Many victims find out that their credit report was never obtained to begin with. If your credit report was obtained by a third party, demand that you receive a copy of the report for your records.
After a few months have passed you may receive a phone call stating that your file has been declined because you failed to deliver the requested documents needed to repair your credit score. Even if you know that you delivered the required documents, they will tell you that you that they are still waiting on updated information from you. They will tell you that it’s too late to do anything further without collecting additional money from you. Remember, these are all lies to perpetuate their deceit and defraud you of your money. Demand to see the letters sent to your creditors, which creditors were contacted and the results from their requests. Was anything ever done to repair your credit score?
m. Never, ever pay someone for services using a money order, Western Union, cashier’s check or money gram. And never, ever give anyone a check made payable to “blank or no name”. The thief will tell you not to fill out who the check is payable to because they do not know what credit reporting company they need to send it to or they have a stamp with the company name to use for convenience. DON’T DO IT!! That check is going to be cashed using the crook’s name or immediately deposited into their bank account. Even if you receive a receipt for your cash payment, you can count on never seeing that money again. It is very easy for a criminal to say that they never received your cash payment if your case needs to be tried in court. If you received a receipt for the cash payment, the thief could claim that the receipt is fake and no money was ever received from you.
n. You may be told that you are approved for a loan and asked to begin looking at homes to purchase. Request your updated credit report showing the items that were corrected or removed and how it affected your FICO score. Request a letter from the lender who approved you for a loan. Contact the lender to verify the information and more importantly, contact a lender of your own choosing to provide you with a second approval to confirm your eligibility for a home loan.
To sum up the red flags to look for when confronted with this type of fraud remember the following:
- There are no miracles in financial or credit repair services. Request references.
- Beware of individuals who make promises and guarantees.
- Credit repair services cost an average of $300 to $600 depending upon the number of items needing attention. Beware of anyone attempting to collect a fee outside of this range.
- Hispanics will prey on their own kind to gain trust through the Spanish language.
- Credit repair scams often begin at swap meets or outdoor fairs among low income communities.
- Advance collection of fees is illegal in California in nearly all circumstances.
- Never pay for services using a money order, cashier’s check or cash.
- Never provide a check for services with blank spaces. Do not agree to have your check stamped.
- Always receive a complete contract for services with contact information, licensing info, date the service is to be performed, terms, defined cancelation and refund policies and a clear understanding of what is expected of you. Full disclosure and open communication at all times.
- Take any approval to a lender of your choosing to verify your eligibility and prove that the credit repairs were performed.
DON'T BE FOOLED!!
Comments (0)Subscribe to CommentsComment