NEWARK
– The State Division of Consumer Affairs
this week launches a multi-media outreach
campaign that educates consumers about how
to avoid credit repair scams that may actually
worsen their situation.
“Your credit history is critically
important when financing a major purchase,
obtaining a loan and even when applying
for a job,” said Thomas R. Calcagni,
Acting Director of the Division of Consumer
Affairs. “Through this outreach campaign,
we want consumers to learn that everything
that a credit repair company will claim
to do for you legally, you can do for yourself
at little or no cost. We’ve seen these
so-called credit repair companies scam consumers
out of hundreds of dollars while essentially
doing nothing and we want consumers to be
alert to these frauds.”
The Division of Consumer Affairs outreach
campaign is primarily funded by a grant
from the Sears Consumer Protection and Education
Fund.
The outreach campaign includes radio ads
that began airing today and newspaper ads
will appear this Sunday. Both the radio
and print ads refer consumers to the Division's
web site, www.njconsumeraffairs.gov
, where detailed information has been posted.
The posted information includes how to obtain
a free annual credit report and how to notify
the credit reporting companies of incorrect
or missing information on your credit report.
“Consumers can report incorrect or
missing information themselves, without
the cost of hiring a company that promises
to repair your credit,” Calcagni noted.
“Be dubious of any company that claims
it can erase bad credit information from
your history.”
The
Division of Consumer Affairs in October
2008 filed suit against a Lakewood-based
credit repair and credit counseling firm,
United Credit Adjusters, alleging that it
failed to provide the promised services
after clients made required payments in
advance. The Division also alleged that
contrary to the company’s representations
and advertisements, consumers’ credit
scores were not raised nor was negative
information eliminated from credit reports.
The two officers of United Credit Adjusters
were permanently barred from doing credit
counseling, credit repair, debt adjuster
and bankruptcy work in New Jersey, under
the terms of the Final Consent Judgment
entered in 2009.
“We will investigate any and all complaints
about alleged fraud committed by companies
that promise to repair consumers’
credit ratings,” Calcagni said.
To find out more about credit repair, contact
the Division of Consumer Affairs at
888-656-6225 (toll-free within
N.J.) or 973-424-8150,
or visit www.njconsumeraffairs.gov
.
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