Hit these links

Let’s take a break from the Identity Theft Myths series today, and instead look at some other topics from other places on the web.

“Is Facebook becoming Phishingbook?” explores a social media scam that seems to be growing lately. Summary: if you’re Facebook friend tells you they’ve been mugged in London and need you to wire money, don’t.

Excellent advice from Craigslist. There is a lot of fraud happening through this popular site. Summary: only buy/sell locally, and never wire money. Ever.

“10 Ways to Avoid Sneaky Work-at-home Scams” is exactly what it sounds like. Summary: the economy is weak and these scams are only going to become more common.

“Beware of Cash For Clunkers Scams.” I’ve covered this here before, but the Eastern Michigan BBB has some more information on the topic. Summary: CARS works by taking your heap, junker or jalopy (or “hoopty,” in the parlance of our times) to a dealer and trading it. There is no pre-registration or anything.

We’ll return to the Identity Theft Myths next Monday. Until then, have fun.

The Internet is just crawling with these people

Just as an illustration of how careful you have to be when it comes to credit repair/credit counseling/etc. on the Internet, after I posted yesterday’s article I also updated the FPU Twitter feed. The update contained the words “credit repair,” because I was stating how many of them were scams.

This morning I had three new followers on Twitter.

Every one of them was from a credit repair scam business. The first one was obvious…every post contained the same URL, they were following a thousand people but had three followers. The second was from a place with a D- rating by the BBB. The third had a big, fat F.

Needless to say, I blocked all three. Then I found a few that I’d missed, hiding out in my list of followers. I’m not allowing these criminals (which is what they essentially are) to follow the FPU on Twitter.

They’re watching Twitter for the words “credit repair” and latching onto anyone who mentions it. Not on my watch.

I may start calling them out by name every couple weeks if it happens enough to annoy me. I’ll just post their Twitter names, their business names, and their ratings from the BBB. And a warning that the Fraud Prevention Unit recommends you do NOT contact these businesses.

If they are contacting you first, it’s a scam. Pure and simple. There are legitimate credit counselors in your area. Do the research if you need their services. You can’t afford not to.

Credit Repair Scams

They’re out there.

They’re waiting for you.

They say they want to help you. They say they can fix your less-than-perfect credit history.

What they really want is to rip you off.

Big time.

First off, it is important to know that there are legitimate agencies that can help you get your financial situation back on track. I’ll talk about some of those later.

However, there are also a lot of agencies looking to help themselves to your cash. Here are a few things to remember:

  1. You should never pay an upfront fee for any type of credit counseling service. This is a major warning sign that they are up to no good.
  2. They must (by law) provide you with a copy of your rights as a consumer. This tells you what you may and may not do in regards to your credit history. If they do not provide this information, it is another warning sign.
  3. If your credit history has accurate negative information, it’s there to stay for seven years (ten for bankruptcy). There is no legal way to have it removed. Are they offering to delete records of a credit card you actually defaulted on? Warning sign.
  4. If there are mistakes on your report, know that you can correct them yourself for free. If an agency is trying to keep you from contacting a credit bureau yourself, that’s…you guessed it: a warning sign.
  5. It is illegal to try to create a new Social Security number or Employer Identification number for the purpose of creating a clean credit file. It doesn’t work, and it can get you into far worse trouble (we’re talking about the kind of trouble that could involve handcuffs and mugshots).
  6. Check out any credit reporting agency with the Better Business Bureau before you even consider using their services.
  7. The minute they use the term “piggybacking,” walk away. It doesn’t work. Warning sign.
  8. There are advertisements everywhere for credit repair services—email messages, on the radio, even on television. I’m just going to throw this out there: ignore them all. Maybe some of them are legit, but many are not. Do your own research and make your own decision. A flashy commercial that makes big promises is a definite (say it with me) warning sign.
  9. Legitimate credit counseling agencies are non-profit organizations. Every single one of them.

So…now that you know how to avoid a scam, where can you go for legitimate credit couseling?

REGIONAL Federal Credit Union works with Consumer Credit Counseling Services of Northwest Indiana (http://www.cccsnwi.org/), a non-profit agency. REGIONAL partners with CCCSNWI because they’re trustworthy, and they do exactly what a credit counseling service should do.

You can also find information about legitimate services nationwide from the National Foundation for Credit Counseling (http://www.nfcc.org/). They don’t work with scammers.

As always, before you use any credit counseling service, check them out with the Better Business Bureau (http://www.bbb.org). If they’re not BBB accredited, and if they don’t have a pretty spotless record, look elsewhere.

Personally, I’d never use an agency that had anything less than an “A+” rating.