When is a credit score repair service offer a scam?

By the end of 2007, Americans owed more than $915 billion in credit card debt, and the credit crunch is clearly impacting consumers as lenders are becoming more choosey about who gets loans and who doesn't. Given stricter loan and credit requirements, Better Business Bureau is warning that some companies are using the credit crunch to take advantage of consumers by promising bogus credit repair services that can be costly and in some cases illegal.

Complaints to BBB about credit repair companies have risen for three straight years, topping more than 1,400 in 2006 - a 38 percent increase since 2004. More than 400 of those complaints were not resolved, meaning BBB was not able to track down the company or the company refused to take steps to resolve the issue with the consumer.

With the economy slowing and lenders becoming increasingly picky, many people are looking for fast, easy ways to fix or even erase damage to their credit history. Consumers need to be very careful when searching for or using a credit repair agency. In some cases consumers are being charged for work they could have done on their own for free, and in the worst case scenarios, consumers are unwittingly encouraged to engage in illegal activities, without their knowledge.

news source : http://www.theadvertiser.com/