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Saturday
Oct302010

Feds Combat Online Credit Scams

Photo Courtesy - Getty Images(SAN FRANCISCO) -- Regulators are cracking down on some firms that promise to fix your credit problems.

"The way that debt settlement companies bill consumers has now changed," said John Ulzheimer of Credit.com.

Before these new rules, Ulzheimer said, "the debt settlement companies could have charged consumers an upfront fee for their services whether they actually did anything for the consumer or not,” a practice that is now illegal.

The change means some operators could be forced out of business.

“Many of these companies did nothing more than survive on upfront fees,” said Ulzheimer, who added that the true practice of fixing incorrect credit reports takes time and effort.

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