Credit Cleaning SCAMS …

I just received an email from some company that asked: Is your clients credit history hindering your revenue?
What? What kind of messed up question is that?
The email went on to say: “We’ve removed thousands of negative items from our clients credit reports.” And went onto list “commonly removed items:
  • Late Payments
  • Charge-Offs
  • Foreclosures
  • Tax Liens
  • Collections
  • Judgments
  • Repossessions
  • Student Loans
Nowhere in the entire email did it mention that they work with people to remove INCORRECT information … Just NEGATIVE information.
What kind of scam is this?

(Sure, you can read the rest of this post, but now you can also watch the video!)

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From what I understand, it looks like this company will somehow temporarily delete negative items on a home buyers credit report just long enough for them to buy a home and the agent to get paid a commission. Well, creditors are not very stupid (well, most of the time) and those negative items will eventually re-appear on the credit report. Right?
If you are sitting there thinking, “So what? As long as they get the house that they want and the agent gets paid, who cares?” then you should not be in this business. In fact, you should probably be in ANY business that involves people. You people make me so dang frustrated!!
Not only is this an ETHICAL no-no (why LIE about anything?), but it is harmful to everyone involved…
  1. The Home Buyer. If this persons credit is so poor that the only chance of buying a home is by erasing the bad credit, then this person SHOULD NOT BUY A HOME … at least not until he or she gains a little more financial and economic maturity. The credit report is a symbol of how they behave financially. Do you really think that purchasing a home will CURE them of their irresponsible ways? No. No way. This scam will only put them in a situation where the home buyer will probably wind up in a foreclosure and an even WORSE credit situation.
    Also, by providing a “false” credit report to the lender, isnt that a CRIME?
  2. The Lender. The lender loaned the home buyer the money partially based off of the credit report, which was ultimately falsified. When (and I say “when” because “if” really isnt appropriate…) the buyer defaults on the loan, the lender will now be dealing with ANOTHER foreclosure. America has seen too many foreclosures already, IMHO…
  3. The Real Estate Agent. If a real estate agent goes along with this “credit cleaning” scam, it just shows their unforgivable GREED. If an agent is so desperate that they need to resort to selling homes to non-qualified home buyers, then we have more than a credit-cleaning scam to deal with, here. Dont we? (I will not use this post to get into how many incompetent people are in this business, but this scam sure brings out the “winners” … )
  4. The Credit-Scamming, er, Cleaning Company. How much money are they charging these non-credit worthy people to put them (ultimately) in a worse (foreclosure) situation? Fraud. Scam. Crime. What are the penalties for lying to lending institutions, besides a heavy conscious? The mail I received stated: “Creditors and credit reporting agencies have spent millions convincing Americans that credit repair is not possible. Dont be a victim any longer.” Their motto should read: “Be a victim to US instead.”
Credit reports SHOULD be personally evaluated at least once a year, to correct any WRONG information. But you do not need to pay a company for this. Any inaccuracies WILL be cleared up if you just fill out the appropriate credit-item dispute form, and supply proof that it is wrong. Thats it.
If your credit is jacked up because of things that REALLY happened, bills that WERE NOT paid or things that LIFE puts in your way, just own up to it. Make an honest effort to pay off your debt, and BEHAVE from this point on. Your credit report will start looking better as soon as you start behaving better. You need to EARN your good credit back.
For a copy of your credit report, visit these 3 main Credit Reporting Agencies:
Note: If you have been denied credit for some reason, you may be entitled to a FREE credit report. This information should be enclosed in the denial letter from the creditor.
Colorado Residents: In addition to any FREE credit report that you may receive due to a credit denial, Colorado residents are entitled to ONE FREE credit report, per credit reporting agency, per year.
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Posted By: Mariana Wagner Colorado Springs Real Estate Monument Real Estate
“Advocate for consumer empowerment in real estate.”

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Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
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Posted on August 17th, 2007 by Mariana Wagner

This entry was posted on Friday, August 17th, 2007 at 5:33 pm and is filed under BUYERS, Colorado Springs Real Estate, Mortgage and Finance, Scams and Fraud. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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