Bad Credit Agency

Has anyone read the article on Yahoo today about how all credit repair companies are all frauds?

Do you think it's true? The SmartMoney.com article was very damning. I use a credit repair service and am very satisfied so the article confused me.

Public Comments

1. According to the article posted on Yahoo! today, SmartMoney.com reports that the FTC claims that ALL credit repair companies are frauds. According to them, we are frauds because we charge people to do something they can do themselves for a lot less money. While it is true that credit repair can be done by each person on their own, and yes, I admit, we do charge people money for our services, there are two things I think are important for people to understand. The first thing that is of supreme importance is that the FTC believes that ALL people who provide services to Americans are frauds. Here is why I believe this is their opinion. The company I work for, Northwest Business Advisors, LLC, provides the service of credit restoration. The average person can also do their own credit restoration. According to the FTC this makes us frauds. But, to follow this logic further, I, as an average person can also repair my car when it breaks down. Mechanics charge me money to do something I can do for myself a lot cheaper. This makes mechanics frauds, too by the FTC definition. When January comes around, I take my taxes to a tax preparation specialist. I, as an average person, am quite capable of preparing my own taxes. Tax preparation specialists charge me lots of money to do something I can do for myself. The FTC must also think they are frauds. When I need money to purchase a house, I go to a mortgage broker to obtain a loan. They charge me money for this service that I am quite capable of performing on my own. Mortgage brokers must be frauds also. I use a realtor to help me find a home. I can find a home on my own. A realtor also gets paid to perform this service. Realtors are also frauds according to the FTC. Ok, you should get my point by now. But here is one other point that I would like to make. Even though I can do all those things myself, when I use a professional I always have greater success in obtaining my goals. A mechanic knows cars better than I do, so he will have greater success at repairing it. A mortgage broker knows the market better than I do so she can get me a better rate than I could on my own. A realtor understands what I want in a home so he finds just what I am looking for rather than me finding something that I will settle for. The tax preparation specialist knows tax laws better than I do so she can get me a better refund. Credit restoration professionals know credit repair laws better than the average person so they will have greater success at the process. But, here is something of interest from that article. Consumer Credit Counseling Services called those of us in the credit restoration business, "bad, bad people." Now let's look at this further. The CCCS is a fraudulant organization by the FTC definition of fraud because they charge people to do something the average person can do for themselves. HOWEVER, it should be noted that when the CCCS is finished with you, your credit is even WORSE than when they started with you. Their process works, don't get me wrong, and I support them 100% for all the good they have done for millions of people. However, their process totally devastates a person's credit for a long time. CCCS looks worse on a person's credit report than a bankruptcy. Now, the allegedly fraudulant service that we "bad, bad people" provide for Americans leaves them with the best possible credit score they can have. They can qualify for mortgages, obtain LOW INTEREST loans to pay off those high interest debts that are causing them problems in the first place, get better interest rates on credit cards, and on, and on. The benefits of our services are incalculable to the client. Gosh, I wish I wasn't such a "bad, bad person." So I think the FTC can, in the infamous words of Bart Simpson, "Eat my shorts" when it comes to their opinion of my line of work. I take great pride in knowing that I can help a person qualify for a mortgage even though they have been told NO by a broker. I am proud of the fact that just this year alone, I have helped more than a dozen families save their homes from foreclosure because of the service our company provides. I don't go around telling the FTC that they are frauds because they get paid a lot of money to call hard working Americans frauds. I can call a person a fraud for a lot less money. So the FTC must be fraudulent. I mean, after all, they meet their OWN definition of fraud. By the way, if you want to see a copy of the Credit Repair Organizations Act that is refered to so frequently in the article, it can be found on my website. We are not afraid of the law because we are in complete compliance with the law and ALL FTC regulations regarding the conduct of credit repair firms. Thank you for taking the time to read this post. I hope you have enjoyed it. Feel free to pass this on to the FTC. If you have any further questions regarding credit restoration and want to know the TRUTH and not some propaganda spouted by uneducated fear mongers, you may contact me at nebula7693@yahoo.com Added April 27th, 2007. Studly, my clients are ALL made aware of their rights under the law. Their rights are even put in the contract they sign. We are so confident in our services, we even tell the clients how to sue us, IN WRITING. I am not concerned with word of mouth, our company has been in business for over 13 years now. We are one of the Nation's largest firms. You don't get that way by being a scam. But, having said that, I would point out that yes, indeed, there are some scam artists out there. I have been on YA for awhile and I ALWAYS promote due dilligence and even educate people on how to do their due dilligence. However, to have my own government tell me that I, a hard working, tax paying, law abiding, war seasoned veteran, am a scam artist simply so they can cause fear amongst my fellow citizens, is, as far as I am concerned, unwarranted and treasonous. I NEVER in all my years expected my government to behave in such an irresponsible manner. To answer your other questions, NO we will not make any guarantees as to how many points we can raise a credit score. You would be asking me to commit an illegal act. In this country, it is ILLEGAL for any credit repair firm to guarantee any particular results. The guarantee our company offers is that if we don't do the work, we don't get paid. I am an honorable person, so please forgive me if I become upset when my government tells the nation that I am not. It is upsetting to say the least. However, I will breathe and chill. That is good advice! :)
2. Robert makes valid points, however the industry has been tainted by the businesses that did nothing but send multuiple disputes in the hope of removing them from your credit. Don't fool yourself. If you didn't pay your bills there is nothing Robert or his company can do for you. His group CAN help if you have ligimate errors and it IS a good service. Remember only time and good financial management can fix credit. No one likes hearing it, but paying your bills and not maxing out credit is the best long term solution.
3. YES!! You are your own credit repair, a company can't do anything you can't do. My article below explains you are your own credit repair and credit manager.
4. Robert....take a deep breath and chill out! The FACT is that the vast majority of credit repair agencies are not worth the time or trouble, and can do more harm then good. This comes from my own first hand knowledge and observations from people who have "been there". The FACT is there are a lot of ill-trained mechanics, tax preparers, contractors, lawyers, and many other "professionals". If they were all fair and honest they would not need to be regulated. Same goes with Credit Repair Agencies. And just like all of these other professionals, it's still "let the buyer beware". I have a very simple test. If the credit repair agency will fill out a contract guaranteeing everything they claim....IN WRITING...then go for it. You state: "Now, the allegedly fraudulant service that we "bad, bad people" provide for Americans leaves them with the best possible credit score they can have. They can qualify for mortgages, obtain LOW INTEREST loans to pay off those high interest debts that are causing them problems in the first place, get better interest rates on credit cards, and on, and on. The benefits of our services are incalculable to the client. " Do YOU put these claims in writing? Will YOUR services reflect on your clients credit reports? Can YOU lower people's debt by 60% as your competitors claim? Can YOU raise their credit ratings by "at least 75 points" as I've seen advertised? Do you accept any money before you meet these objectives for your clients? So for now, chill out! If you are as good as you claim, word of mouth will get you tons of clients. Realize the fact that you have chosen a field loaded with scam artists and you are going to be labeled the same way. But if you are really as good as you claim, you have nothing to worry about. Same goes for many mechanics, tax preparers, lawyers, and contractors. Why do you expect special treatment?
5. The beef about credit repair services is that they are charging for something you can do for free. The only reason to use a credit repair service is if you simply have no time to do it yourself. I do not feel they are scam, but they do make allot of money off of people who could have done it themselves, but where convinced it was too difficult.