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When a fraudster steals your credit card number and makes purchases in your name, you fairly believe it is a crime. When a fraudster has access to your personal information and makes a new credit card deal in your name or files bankruptcy or whatever, you claim it is a crime. Credit card fraudsters make their criminal earnings and they do not pretend that they are not doing anything illegal.

There are shady companies, legally organized at first sight, that claim to be able to delete negative items on your credit report and you rush to their services, never realizing you might be a victim of illegal activity.

Is it anything new to you? Most likely, it is not, as there are lots of articles on how the so-called credit repair organizations work. They attract you by their miraculous promises like: "We can erase your bad credit - result guaranteed!" "We legally create a completely new credit identity!" or "We delete bankruptcies and judgments from your credit file!" and you sincerely believe all these claims.

For an ordinary credit cardholder it may be a knotty problem to avoid shady companies and find professionals whom they can really trust. Most often you can put trust with credit counselors advising on how to improve your credit scores and credit history through better credit management.

Credit counselors or legal credit repair companies cannot require you to pay for the service before they actually complete it. They should tell you about your legal rights and allow you to know what you can do yourself for free. More, they should enforce your customers' rights under the local and federal laws working on the credit repair.

Scam credit repair companies are also recognized by the suggestion to create a new credit identity by using the Employer Identification Number instead of the Social Security Number.

Now, all these signs make it a bit easier for you to avoid scams. But what if you run into a law firm claiming it can help customers who have filed bankruptcy or have inaccurate items on their credit report?

On the one hand, the fact that practicing law is the basic occupation of such companies carries conviction of its solidity and security. On the other, a law firm practicing credit repair is not much different in its strategies and requirements from non-law firms.

Some financial advisers even suppose that a credit consumer is put at a greater risk when working with a law firm as the latter is not required to place a bond guarantee with the state that it will comply with all the local and federal laws.

This fact has led to lots of scam credit repair organizations turning into law firms. But, attention! These do not really practice law! They exist only on paper and continue their fraudulent practices of pulling money out of ignorant customers.

Thus, if you are suffering the unfavorable results of credit card debt or erroneous items on your credit report and you seek help, make sure that the credit repair company is not concealing your legal rights. No matter if it is a law firm or a non-law one, make sure that it complies with the Credit Repair Organization Act assigned to protect customers from unfair practices.

Any credit repair organization is obliged to provide a copy of the "Consumer Credit File Rights Under State and Federal Law " and make a contract with you spelling out your rights and obligations.

If it is not done, it makes no sense that you work with exactly a law firm as it may be using its law status only to screen its illegal practices. Your credit rating will at best retain its negative status or will be completely damaged at worst. You will have to forget about best, lowest APR credit card offers or competitive rate mortgage.

Can't imagine it? Get educated and turn down scam firms!