“Some Credit Repair Companies are a Rip off”

Managing Real Estate Broker with Compass Realty Solutions 990300265

We all think that if we spend enough time doing our research well and try really really hard, we can find an easy solution to our problems.  We want to believe it so much when we find something we fall for it.

There is a saying that I learned as a child....."there ain't no such thing as a free lunch".  If you go to someone's house and eat their food, it wasn't "free food".  In order to prepare the lunch, the other person went to the store, or wherever, and purchased it.  If everything that was served was grown in a garden, it still wasn't free.  It was still planted, watered, weeded, and perhaps fertilized.  It was harvested and then cooked.  So it wasn't actually "free" to this person either.  Through a combination of effort, this person earned the food.  

This phrase has served me well over the years.  Here's an interesting take on "free food":

 The "free lunch" in the saying refers to the nineteenth-century practice in American bars of offering a "free lunch" in order to entice drinking customers. The phrase and the acronym are central to Robert Heinlein's 1966 science-fiction novel The Moon is a Harsh Mistress, which popularized it.[2][3] The free-market economist Milton Friedman also popularized the phrase[1] by using it as the title of a 1975 book,[4] and it often appears in economics textbooks.[5] Campbell McConnell writes that the idea is "at the core of economics".[6]

I learned the phrase from Robert Heinlin, who incororated economic and social issues into his fiction.  I have also read a little Milton Freeman.  I can't imagine paying someone I didn't know for something that I may or may not have in the future, but some people do.

Original content by Joe Petrowsky NMLS # 6869
“Some Credit Repair Companies are a Rip off”
I received a referral from a Realtor recently. She had a client that wanted to buy another home, but there were a number of things on the prospective buyer’s credit. She told me that he had gone to a credit repair company, but after a few months, nothing on the credit report had changed.
I actually met with the client and ran the credit. As the Realtor told me there were numerous items that were a problem. I went over the list with the client and as it turned out, all the obligations were actually owed.
credit repairHe told me that the credit repair company told him, they could get the items off his credit without paying any part of the debt. He paid them $2,500 to get rid of $5,000 worth of obligations. He has called them numerous times to get a status, but each time he was able to speak to someone they said we should be all set real soon. He wasn’t ready to admit it, but he was ripped off.
Here is what anyone in this situation needs to know, if the debt is owed, NO ONE can get anything off a credit report, unless the debt is paid or settled. Certainly if the obligation is incorrectly reported, it shouldn’t have to be paid.
I coached him on the process, gave him all the phone numbers of the collection agencies and coached him about arranging for 2 secured credit cards. Hopefully, he will make his other monthly obligations on time and not create any additional problems.
I let the Realtor know, if the client did what I have suggested, he should be ready to go in 4-6 months.  
image courtesy of phanlop88/freeditialphotos.net


Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comments (2)

Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Thank you for the re-blog, really appreciate it. it drives me crazy when I see the public taken advantage off, like these folks.

May 15, 2013 10:35 AM
Susan McCall - - Compass Realty Solutions
Compass Realty Solutions - Portland, OR
Listing and Buyer's Agent

It drives me crazy too.  I have seen it happen so many times. 

May 15, 2013 12:09 PM