While there are some reputable non-profit credit counseling services available, some for-profit credit repair companies are scams. They often make false promises and exploit consumers who may not fully understand their rights. Here’s why you should steer clear of paying for credit repair services:
1. Accurate and Timely Negative Information Cannot Be Removed
No credit repair company can legally remove accurate and timely negative items from a credit report. They might dispute these items, possibly leading to a temporary boost in credit score but once investigated, accurate and up to date information will reappear.
2. Consumers Can Fix Errors for Free
You have the legal right to dispute errors in your credit report at no cost. Correcting genuine mistakes is fast, free, and simple through the credit bureaus’ online dispute tools.
3. Advance Fees Are Illegal
Charging upfront fees for credit repair services is against the law. Under the Credit Repair Organizations Act, these companies cannot collect payment until they provide the promised results. Additionally, companies using telemarketing must also adhere to the Telemarketing Sales Rule, which bans credit repair organizations from collecting payments until enough time has passed to see the promised results on your credit report.
4. You May End Up in More Debt
Sadly, paying a credit repair company often leads to more debt, not less. Scammers target people in tough situations, draining their resources without delivering any real results.
Midland Credit Management (MCM) Policies: What You Need to Know
If you want more information about Midland Credit Management’s (MCM) credit reporting practices, here are the highlights:
- If your account is paid in full or settled after reporting begins, MCM will request the deletion of its tradeline. Typically, credit bureaus process this request within 45 days.
- MCM will not report an account if:
- Payments start within six months from when they send their initial notice.
- Payments are made at least monthly until the account is resolved.
- All tradelines must be deleted seven years after the delinquency date, though certain states require shorter timeframes.
Beware: Some credit repair companies may attempt to impersonate MCM. Here’s how to ensure you’re
speaking with us if you receive a call from MCM:
- We will always introduce ourselves using our company name, Midland Credit Management (MCM).
- Our account manager will provide their full name and title.
- If we call you, we will verify your identity to ensure we are speaking to the right person by confirming specific account information unique to you.
If something feels off, don’t hesitate to contact us directly.
In Summary
The safest way to avoid falling deeper into debt is to steer clear of costly credit repair scams. Rely on trusted, non-profit credit counseling services or handle disputes directly with the credit bureaus for free.
