Credit Score Promises May Be a Rip Off

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Posted: 4:55 AM Jul 24, 2008
Last Updated: 3:37 PM Jul 24, 2008

2 comments

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Last year Americans owed nearly $915 billion on their credit cards.
The ads are everywhere that say they can help you improve your score. Some companies do provide a useful service, but people are discovering others aren't all they're cracked up to be.

The Better Business Bureau says people will pay hundreds, possibly even thousands of dollars for a service that doesn't help. The BBB says it's received 7,000 complaints about credit repair services in the past five years.

The BBB says for an upfront service fee it will work with the credit reporting agencies to improve your score. That's when they say the customer is strung along, with nothing being done, and they can't get their money back.

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Comments are posted from viewers like you and do not always reflect the views of this station.

Posted by: Brent Location: Waterloo on Jul 24, 2008 at 02:58 PM
Unfortunately, this article paints all Credit Repair companies the same. While it is true there are dishonest companies out there, it is unfair to paint them all the same. There are dishonest mortgage brokers, mechanics, etc out there also, but does that mean they are ALL bad, absolutely not. The best policy is to check out nacso.org to see if the credit repair company is a member and reputable and if any complaints have been filed.

Posted by: Dominic Location: Phoenix, AZ on Jul 24, 2008 at 08:27 AM
If this is truly what the BBB has said, then this is completely sensationalized and untrue. I'm with the National Association of Credit Services Organizations, and we help regulate the industry mentioned. The service that Credit Repair Organizations provide works. In the event that a customer is not helped by a service provided by a Credit Repair Organization, then a refund is typically granted. Additionally, 7000 complaints in five years for all the companies that are out there is very small and not even worth talking about. We, like the BBB, process complaints on all credit repair companies, members or non members. We find with the majority of the complaints, the credit repair organization is not at fault. Rather, with how confusing the credit system is, the consumer forgets to forward results or follow their part of the program, and they think the company is at fault.