No Such Thing as a Quick Fix for Credit Woes

by Mark Wellborn

image

If you find that the only thing preventing you from being able to buy a new home is a poor credit score, do not be tempted by internet and TV offers that claim to be able to help you remedy this problem. In his latest column, Kenneth Harney examines services that claim that they can eliminate the information in your credit history that harms your score.

Harney’s piece focuses on the misdeeds of two credit repair shops, and the punishments that were handed down by the Federal Trade Commission to each. One of those settlements involved a company called Successful Credit Service that claimed to be able to remove any negative information from an individual’s credit history. The company charged between $3,000 to $4,000 up front for their services (red flag #1) and recruited clients from seminars around the country (red flag #2). However, it is illegal for companies like this to collect money before services are completed and more importantly, they are not allowed to remove damaging information from a person’s credit file.

These two infractions are almost beside the point, as Successful Credit Service not only did not deliver on the promised services to most of its clients (i.e. their credit history and score remained unchanged), but, according to the article, it was extremely difficult for clients to reach anyone at the company with questions. Believe it or not, Bernie Madoff did not have a hand in this scheme. In the end, the Federal Trade Commission ruled that the firm had to pay $8.3 million (apparently they don’t have the assets to make this payment) and it can’t “engage in unlawful credit-repair practices” anymore.

For anyone who may be tempted to use a service like this, Harney’s column is a very worthwhile read. And, if you are interested in learning about ways to legally and efficiently improve your credit score, read our article on the subject here.

3 Comments

  1. Frank Fitton said at 10:51 am on Tuesday October 20, 2009:

    In these situations its imperative to remember that if it sounds too good to be true, it probably is. If these companies could indeed do what they claimed, that payment amount would seem like a pretty good deal. Based on the improved interest rate you can get with a good credit score, consumer’s could certainly save that amount right off the bat. Making the service more than worthwhile.However, what they promise just isn’t possible.

    What people need to realize and take from this is that there are no quick fixes for your credit score if the information is accurate. That’s not to say that the entire credit repair industry is a scam. Credit repair done the right way gets rid of information on there that might be wrongly attributed to you or simply reported inaccurately. There certainly is a whole lot of that going on. People of course can attempt to clean up wrong information themselves, but as with any service its a whole lot easier if you hire a professional. Making sure all the information on your credit report is really you AND reported accurately is the service that legitimate credit repair organizations offer. Anyone offering you anything more than that, and wanting payment upfront to do it, is simply looking to take your money.


    Check out my blog on credit repair scams at…. http://www.thedebtgazette.com/2009/10/ftc-going-after-credit-repair-firms/

  1. Debbi Carroll said at 10:29 pm on Tuesday October 20, 2009:

    You are so correct… people need to be wary of quick fix credit repair company’s that promise more than they can deliver. People should first request a copy of their credit report and question any irregularities themselves. There are company’s that will help you with this, educate you on things you can do to eventually repair your credit. Learn more about credit repair

  1. Michael Lach said at 1:53 pm on Wednesday October 21, 2009:

    http://www.RemoveMyCreditInquiries.org is a site I found that is ran by a non-profit that can remove credit report inquiries for $15.  They also appear to remove late comments as well.

Join the discussion



* required fields

Find An Agent in the DC Metro Region

UrbanTurf Archive

Following are past UrbanTurf stories, organized by topic for your convenience.

Neighborhood Profiles more »

Capitol Riverfront: Still Growing

Capitol Riverfront: Still Growing

Tim Brown
March 8th | 20 Comments

Despite being one of the areas in DC hit hardest by the economic downturn, Capitol Riverfront,... read »

Editor's Choice more »

A Proposal: Georgetown Should Secede From DC

A Proposal: Georgetown Should Secede From DC

Mark Wellborn
March 10th | 9 Comments

In a post that is sure to incite the ire of DC residents, Carol Joynt, a DC columnist for New York... read »

New Condo Profiles more »

Clarendon 3131:  Boutique Quality Condos with Space and Convenience

Clarendon 3131:  Boutique Quality Condos with Space and Convenience

Jeremy Castle
February 18th | 0 Comments

In anticipation of its grand opening this weekend, UrbanTurf got a sneak peak of Clarendon 3131, a... read »

The DC Condo Market more »

Remaining New Condos in the DC Metro: Where Are They?

Remaining New Condos in the DC Metro: Where Are They?

Will Smith
February 16th | 5 Comments

The recent report on the new condo market from McWilliams|Ballard includes tallies of the remaining... read »

Green Real Estate more »

What $469K Buys You in DC?

What $469K Buys You in DC?

Mark Wellborn
March 10th | 5 Comments

In this week's installment of What X Buys You, we look at a two-bedroom row house in Shaw that was... read »

Deal of the Week more »

Deal of the Week: One-Bedroom Penthouse on Logan Circle (With Parking)

Deal of the Week: One-Bedroom Penthouse on Logan Circle (With Parking)

Mark Wellborn
March 8th | 3 Comments

For this week's Deal of the Week, we find a one-bedroom penthouse on Logan Circle that has that one... read »

Renting more »

What $750K Buys You in DC?

What $750K Buys You in DC?

Mark Wellborn
March 4th | 1 Comment

In this week's installment of What X Buys You, we look at the $749,000 price point and find a... read »

Condo Buyers more »

New Residential Project for LeDroit Park

New Residential Project for LeDroit Park

Mark Wellborn
March 8th | 2 Comments

LeDroit Park’s housing stock is known primarily for the James McGill-designed, Victorian homes that... read »

Unique Spaces more »

Unique Spaces: Tilden Street Restaurant Becomes Spacious Home

Tilden Street Restaurant Becomes Spacious Home

Mark Wellborn
March 2nd | 15 Comments

There are likely very few people in the DC area who can say that they live in a former restaurant.... read »

DC Buyer more »

DC Buyer: Attorney Power Couple Looking For More Space

Attorney Power Couple Looking For More Space

Martin Smith
March 10th | 12 Comments

In this week's DC Buyer, we’re working with a downtown attorney couple who would like to make the... read »

UrbanTurf Reader Asks more »

UrbanTurf Reader Asks: Are DC Homeowners Seeing Their Tax Assessments Increase?

Are DC Homeowners Seeing Their Tax Assessments Increase?

Mark Wellborn
March 9th | 8 Comments

In this week’s installment of UrbanTurf Reader Asks, a reader who bought a foreclosure in 2009 and... read »

Ask an Agent more »

Ask an Agent: Should I Buy a Parking Space That is Separate From My Unit?

Should I Buy a Parking Space That is Separate From My Unit?

Mark Wellborn
December 9th | 2 Comments

In this week's installment of Ask An Agent, a reader who bought a condo last year wonders if he... read »

Best New Listings more »

Best New Listings: Logan Circle and AU Park

Best New Listings: Logan Circle and AU Park (Week of Mar 8th)

Mark Wellborn
March 8th | 0 Comments

This week's Best New Listings include a four-bedroom top floor condo in Logan Circle and a... read »

Luxury Real Estate more »

“If I Had $2 Million” Listing: Ultra-Modern Home in Penn Quarter

“If I Had $2 Million” Listing: Ultra-Modern Home in Penn Quarter

Mark Wellborn
7:00 AM EST | 2 Comments

This week's "If I Had $2 Million" listing certainly caters to a particular type of buyer. The... read »