Why credit repair companies are a ripoff

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Beware of this rip off

I have a very important warning for you. There is a hot rip off that is booming all across the country that can take you from a difficult financial situation and dig you deeper into a hole. Here’s how it works. There are thousands of organizations, companies, whatever you want to call them that claim that they can clean your credit.

That whatever bad stuff is on your credit report, late pays, collections, charge-offs, that they can magically make that stuff go away and give you a pristine clear credit report. It is a big fat lie. And in fact, it is illegal in several states. What they’re doing is they’re barraging the credit reporting agencies with dispute letters that temporarily for a very short window will clean your report and then all the bad information comes back, in the meantime you pay them hundreds or thousands of dollars that will be better used in your life. I’m Clark Howard.

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