The office of the Consumer Financial Protection Bureau (CFPB) has been forced into action because many consumers put themselves in situations that make them susceptible to credit repair schemes. In response, CFPB periodically names a few of the most blatant offenders. It’s recently called out companies such as Prime Credit LLC, IMC Capital LLC, Commercial Credit Consultants and Park View Law.
What Victims Face
A good example of what’s happening took place in Chesterfield County, Virginia. There, Timothy Scott Wenk is charged with stealing $750,000 from local residents in a credit consultant scheme. Many of these people were looking to improve their credit scores and financial health and now face financial devastation.
The CFPB shows a variety of situations in which individuals were taken advantage on. For example, there is evidence that they target customers who just sought after a mortgage loan or those who never disclose the limits of their money back guarantees. These guarantees are worthless until clients pay at least six months into their subscription of services. Many companies send dispute letters to credit agencies, never follow up, and never determine if scores increased. Thomas Conwell III, the President, and CEO of Michigan-based Credit Technologies stresses to consumers that there is nothing a credit repair company can do which a borrower cannot do themselves.
The bottom line is simple. The best way to overcome debt is to pay it down or refinance it with a source of capital that offers better terms. The “quick fix” credit service lacks any real benefit to today’s consumers.