Bogus ‘Debt Repair’ Companies

If you have been approached by a credit repair company or seen advertisements for credit repair services, beware. Debt service providers who charge an upfront fee or ask you to call a premium phone number are often bogus - after all, it is people with poor credit history and debt problems (past or present) who can least afford to pay up front for such services (or the large phone bill). Some so-called credit repair companies act as a 'cover' for a finance broker or lender who wants to sell you a loan. What's more, you can actually improve your credit history without paying for assistance.

Companies that offer you the chance to clean up your poor credit history or restore your credit rating should be approached with caution, especially if they charge an upfront fee or have a premium phone number. You can repair your own credit file without using the services of a credit repair company.

County court judgments cannot be removed from credit files unless they have been discharged or were incorrectly granted. Unsubstantiated claims that a court summons was not received or that correct procedure was not followed will not persuade a court to remove a judgment from its records. It is possible to check for yourself what is on your files and request that corrections are made if the information is incorrect.

Request a copy of your credit file from the Credit Reference Agencies: Equifax and Experion. If anything on there is incorrect, you can request that it is removed but will need to prove any errors. The Consumer Credit Act 1974 gives you the right to have incorrect information corrected or removed from your file or have a note put on the file which explains why you think the information is wrong.

Request cancellation of a CCJ if you have paid the debt within a month of it being granted. This is the only way to have a judgment cancelled and removed from your credit reference file and court records. However, the history of the debt will probably not be removed from your file, whether it's been paid or not. If you pay off a CCJ after one month of it being granted, you can apply for a 'Certificate of Satisfaction' to be added to your credit reference file.

 

If you believe that a trader is conning the public with bogus "debt repair" offers

Tell your local Trading Standards Service and tell us - it may help us to stop them and protect other people.