Credit Repair or a New Scam?

Good Morning,


Last Friday CNBC(link below) reported that Consumer Financial Protection Bureau filed a lawsuit against two companies(Lexington Law and Creditrepair.com). The government agency claims that these companies are using fraudulent activities to gain clients. From the article two points that stood out were:

1. The government agency wants to end the upfront fee and deceptive marketing techniques (bait and switch)

2. Some credit repair companies charge hefty fees of $79.95 to $129.96 per a month

I have noticed that there are more sites and advertisement for credit repair, and with low rates it is advantageous to have the best credit rate possible. Unfortunately, I’m not familiar with who or what are the best programs, so I would consider gathering a couple of different options then decide which option is best for your situation. The cost does matter because the prices mentioned in the article equate to $1,000+ a year which could be used for paying down debt.

Doing some of the basics like paying bills on time and lowering credit card balances are two ways to start the process, which is a good start.


https://www.cnbc.com/2019/05/03/consumer-watchdog-sues-two-credit-repair-firms-over-fees-practices.html



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