In relation to the economic crises that have occurred in recent years, it is possible that your credit debts are increasing day by day, due to the use of credit cards, delays in paying mortgages, job losses, business closings , reduction of salaries among others. Reason why you could make the decision to go to a credit repair company thinking that they could support you with your credits. But before you could choose to request the advice of this type of companies, here are some tips to avoid being defrauded, according to what has been published by the National Commission for the Protection and Defense of Users of Financial Services (Condusef).
Tips to avoid being defrauded by credit repair companies
Although you could be anxious to pay your debts, you should be careful, because just as there are credit repairers that are known, there are others that only engage in fraud.
1.- Stay alert
There are no credit repairers that request cash or that you transfer it by deposit to a personal bank account. If you are presented with this type of situation, it is likely that they will try to carry out a fraud, so it is convenient that you could look for other options.
Tips to avoid being defrauded by credit repair companies. Photo: My Pocket.
2.- Do not sign any type of document without having read
If you have in mind to sign a contract with the credit repair company, first read this document in detail and verify what the conditions and deadlines are, and check what penalties are applied in case of delay or abandonment of the program. If you are not 100% convinced, do not sign it.
3.- Repair companies do not clean your credit history
In the event that the credit repair company you go to tells you that it could clean up your credit history, it is probably not true, so your credit history will be negative and in the future it could be difficult for you to obtain a new credit. It is also important to mention that no repair company could erase you from the credit bureau, even if they ask for money, since no person or institution can carry out this procedure.
4.- Look for valid options to negotiate your credit
There are other organizations that you could go to to negotiate or settle your debts, such as your financial institution, where you could agree on a fixed payment plan or, failing that, restructure the credit and also you could not be presented with fraudulent situations, which could lead to affect your personal finances.
It should be mentioned that credit repairers are companies that perform the function of intermediaries between the debtor and the financial institution to which it could be owed and their purpose is to offer the person who has the debt, a kind of negotiation with the banking institution through options for credit settlement. It also tries to reduce the amount through discounts and modify the credit history in the credit bureau.
According to information published by the Condusef, there is currently no legal framework that regulates the operations of credit repair companies, which means that these companies operate independently and independently, for this reason some people may go with repair companies who are not accredited, existing the probability that they are victims of fraud, and in the event that this happens, the Condusef does not have the faculties to offer them support.
More content about loans and personal finances, in our Credits section.