What to Do About a Credit Repair Scam
Some borrowers fail to pay on time, and their credit scores plunge. This has given rise to a special type of business. Credit repair firms in Thailand promise to fix your score, eliminating negative records. Sadly, most of these companies are fraud. Here is what their victims should do.
Too Good to Be True?
The credit score may deteriorate due to different reasons. If borrowers fail to make payments, this is reflected in their rating. Sometimes, errors are to blame. The first thing to do is to identify the cause. If this happened through no fault of yours, notify your bank and credit report bureaus.
A lower credit score spells trouble in the future. Your request for a mortgage may be rejected. If you are still given loans, you will be charged higher interest. As a result, borrowing will be inaccessible or expensive.
Credit repair sounds like the perfect solution. A company claims it will raise the score, so you can borrow again. They offer to delete all negative information from your credit report and replace it with positive details. For desperate borrowers, this scheme is often irresistible. Don’t let it fool you!
How Credit Scores Are Repaired?
Usually, borrowers can improve their scores themselves. This process is lengthy but feasible. First, they should see if there are any positive cases overlooked by the credit bureau. For instance, if you have a credit card and always repay on time, these details are positive for your history. They may be ignored due to an error in the system.
If there is bad debt, make fixing it a priority. Create a budget and see what prevents you from finding the right amount, and how your expenses can be managed. There is no shortage of smartphone apps that can do budgeting for you.
Look for alternative sources of income. For example, you can open a live trading account through a brokerage firm like Forextime. This gives access to global financial markets, and entry is affordable for everyone.
There is a wealth of educational resources. Traders make a profit by buying and selling online. In Thailand, you can trade currencies, stocks, derivatives, and more. Through a copy trade scheme, you may delegate decision-making to an expert.
Any timely payments have a favorable effect on the score. Hence, you can try getting another loan or credit card and repay it properly. Naturally, bad history means you will be charged higher interest.
If You Have Been Scammed
If you have already been defrauded, follow the steps below. Credit repair scam is increasingly common in Thailand. Do not let criminals remain unpunished.
Keep All Docs
Any documents related to your transactions should be carefully stored. Never throw away any receipts or other evidence. Of course, your contract is essential, as it contains the written promises and obligations of the provider. In addition, keep all evidence of payments made to the company. Even a copy of your bank statement will do.
Ask for a Refund
If you have paid upfront, demand a refund. It is unlawful for a credit repair company to collect advance payment. If they refuse, let them know you are willing to contact authorities and file a lawsuit. It is best to mention the exact names of watchdog organizations, so they know you are dead serious.
File a Complaint
Find a protection agency, licensing office, or trade association in your area. Usually, organizations that defend consumer rights can guide you. Report the scammers to all organizations that will listen. If the firm claims to be accredited, contact the agency that supposedly gave the approval.
File a Lawsuit
If the company fails to perform its obligations under the contract, there are grounds for a lawsuit. If neither the services nor a refund was provided, go to court. A breach of contract is a crime.
Spread the Word
Post negative feedback on social media: Facebook, Instagram, etc. The more channels - the better. Spread information in specialized communities online. Let everyone know that the company is a fraud. They will continue luring in new victims.
Avoiding Credit Fraud
Never sign a contract before reading it. If the company is pressuring you to sign quickly, do not! Essential details of the contract may be missing, such as:
the cost of services;
the date by which they must be rendered;
the name and business address of the firm;
conditions of contract termination.
Fraudsters will always ask for payment in advance. This is because they do not intend to do any work!
The Bottom Line
If you need help repairing your score, be very careful with providers. No reputable company can promise to actually delete information from your credit report. Scammers may also use dubious practices like creating a new identity!