Credit Repair Scams- FTC releases Top 10 Scammers List
Should payday loan companies be in the same category as credit repair companies? The FTC seems to think so, the only problem is that credit repair companies are catching the slack for payday loans and their bad reputations.
A recent article from the FTC found HERE details a list of the top 10 industries that received the most consumer complaints in 2011. Credit repair companies rounded out the list as # 10 on the list however there are a few details that should be mentioned that are completely left out.
There is no question that there are still plenty of credit repair scammers out here taking peoples hard earned money and we are always against those types of so called companies because they often ruin the reputation of legit companies like ours. The clarification that needs to be made however is the fact that the #10 category is unfortunately shared with another type of service in which credit repair has absolutely nothing to do with- payday loans! I recently posted an article detailing the absolute horrible rates that payday loan companies charge and why its so important to avoid them, on top of that we have to share the same category with them which makes no sense what so ever.
The worst part of it all though is that upon further investigation into the details it turns out that the actual complaints against credit repair companies in 2011 make up only about 1% of the complaints in that whole entire category!! Something is not right here!!! You can find the details in this report HERE.
Its obvious that the biggest portion of issues comes from the payday loan side- in fact its actually 99% of the problem!
So although there are still credit repair scammers out there and you should always be vigilant, be aware that sometimes these facts and figure are not always what they are stacked up to be.