Part 2 of Credit Repair Scams – Avoiding the 10 Year Plan
Posted on September 17th, 2007 by Marc Chase Posted in Credit Repair | 9 CommentsI promise, some day I’m going to write something positive about the Credit repair industry. It just isn’t going to be today!
I was going to add this in the last post, but I wanted to save some ammunition for a second post. Being in the industry, I know exactly where this pathetic little plan comes from. It’s a greedy attempt to milk clients for as long as possible.
Luckily for you, it’s very easy to spot. Here is how it works.
When you sign up with the credit repair company only 2 to 3 items are disputed on your behalf to only ONE BUREAU.
Then, 15 to 30 days later 2 to 3 items are disputed on your behalf to another bureau, then 30 days later…etc etc etc.
If you do the math - only 2 items are being disputed to a particular bureau every 3 months or so. That means if you have 8 negative items, you could be milked for monthly fees for a year or more.
Here’s the beauty of this scam. With just a couple items being disputed every couple weeks to different bureaus, its going to appear as though there is a lot of activity going on in your account.
The reality of the matter is that you are wasting a lot of money and a lot of time. Any legitimate credit repair company should be disputing at least 5 items per month, to every bureau - every month.
The Bottom Line!
To fully understand credit repair and all its laws is no easy task, but common sense does go a long way. You need to really, REALLY quiz any credit repair company before you hire them.
Do all the math, listen to that little voice and hopefully you should do fine. In case you didn’t read the last post, here is a list of questions you should get clear answers to before hiring them.
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BBB Track Record: Anything more then 2 or so complaints, I would look elsewhere.
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A Backend you can track your progress is a must.
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Outsourcing your files and/or customer service over seas. A huge no no in my book.
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Contacting everybody on your credit report. That means creditors, collection agents, credit bureaus and attorneys.
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They should dispute at least 5 items, per month, per bureaus every single month
If you are currently with another company and not getting the answers or results you deserve, please feel free to post your questions here and we’d be glad to answer them.
Holy Crap! I signed up with ******** and thats exactly what happened. They told me they get better results that way but it completely makes sense why they did it now.
Son of a bitch!!!!!!!!!!!!!!
Burt,
Sorry to hear about that but at least you know now. I edited out the name of the company because I dont want this to be a place to single out credit repair companies.
I want consumers to be aware and learn, but I don’t want to stoop to dropping names.
If you have any questions about the service you’re currently getting elswhere, we’ll be happy to explain how to get the most of of your credit repair company.
I’ve read everywhere that the credit bureaus have 30 days to respond to your dispute.
How come the company I’m with says I should see results every 60 to 90 days?
Am I being taken for a ride?
Spencer,
It sounds like you’re on the 10year plan. The bureaus have 30 days PLUS mail time which always comes out to be about 40 days.
60 to 90 days clearly they are not turning your disputes around as quickly as they could.
WOW, great info, this is something definitely worth knowing!
I hope this isn’t too off topic, but I just came across your blog and have a quick question for you. Being in the real estate industry, I get a lot of questions from people who want to repair their credit quickly. Who would you reccomend for doing rapid rescores and such?
Great article Marc.
Credit takes time to build up, and repair…but not too much time!
I’ve never heard of the “10 Year Plan” before, but now I know what to look out for!
Hi Barry,
Just about any mortgage professional should be able to do a rapid rescore
Unfortunately, credit repair scams are all to pervasive. I guess the best method in finding a good one is to ask around and find out a good company.