Recommendations to victims of credit redemption scams
Credit repair services can help you correct your score. Unfortunately, the industry is full of crooks. Follow our advice if you have succumbed to their promises.
What to do about a credit repair scam
Some borrowers don’t pay on time and their credit scores plummet. This gave birth to a special type of business. Credit repair companies in Thailand promise to correct your score, eliminating negative records. Unfortunately, most of these companies are fraudulent. Here’s what their victims should do.
Too good to be true?
The credit rating can deteriorate for a number of reasons. If borrowers do not make their payments, this is reflected in their rating. Sometimes mistakes are to blame. The first thing to do is identify the cause. If this has happened without you being responsible for it, let your bank and credit bureaus know.
A lower credit score means problems in the future. Your mortgage application may be rejected. If you are still on loans, you will be charged higher interest. As a result, the loan will be inaccessible or expensive.
Credit repair seems to be the perfect solution. A company claims this will increase the score, so you can borrow again. They offer to remove all negative information from your credit report and replace it with positive information. For desperate borrowers, this pattern is often overwhelming. Don’t be fooled!
How are credit scores repaired?
Usually, borrowers can improve their scores on their own. This process is long but doable. First, they should see if there are any positive cases that the credit bureau overlooked. For example, if you have a credit card and always pay off on time, these details are positive for your history. They can be ignored due to an error in the system.
If there are bad debts, make it a priority. Create a budget and see what’s stopping you from finding the right amount and how your expenses can be managed. There is no dearth of smartphone apps that can budget for you.
Look for other sources of income. For example, you can open a live trading account through a brokerage company like Forextime. This provides access to global financial markets and entry is affordable for everyone.
Educational resources are plentiful. Traders make profit by buying and selling online. In Thailand, you can trade currencies, stocks, derivatives, etc. Thanks to a copy trade plan, you can delegate the decision-making to an expert.
Any one-off payment has a favorable effect on the score. Hence, you can try to get another loan or another credit card and pay it off properly. Of course, a bad history means that you will be charged higher interest.
If you have been scammed
If you’ve been a victim of fraud in the past, follow the steps below. The credit repair scam is more and more common in Thailand. Don’t let criminals go unpunished.
Keep all documents
All documents related to your transactions must be carefully kept. Never throw away receipts or other evidence. Of course, your contract is essential because it contains the provider’s written promises and obligations. In addition, keep all proof of payments made to the company. Even a copy of your bank statement will do.
Request a refund
If you prepaid, request a refund. It is illegal for a credit repair business to collect an advance payment. If they refuse, let them know that you are ready to contact the authorities and take legal action. It is better to mention the exact names of the monitoring organizations, so that they know that you are very serious.
File a complaint
Find a protection agency, licensing office, or professional association in your area. Usually, organizations that advocate for consumer rights can guide you. Report scammers to all organizations that listen. If the business claims to be accredited, contact the agency that supposedly gave the approval.
File a complaint
If the company does not respect its contractual obligations, legal action should be taken. If neither the services nor a refund have been provided, go to court. Breaching of contract is a crime.
Post negative comments on social media: Facebook, Instagram, etc. The more channels, the better. Disseminate information in specialized online communities. Let everyone know that the business is a fraud. They will continue to attract new victims.
Avoid credit fraud
Never sign a contract before reading it. If the company is pressuring you to sign quickly, don’t! Key details of the contract may be missing, such as:
the cost of services;
the date by which they must be returned;
the name and business address of the company;
conditions for terminating the contract.
Scammers will always ask for payment in advance. This is because they have no intention of doing any work!
The bottom line
If you need help repairing your score, be extra careful with providers. No reputable company can promise to remove information from your credit report. Scammers can also use questionable practices like creating a new identity!