Is Credit Correction a Scam? (CC)

There is every possibility if you are approached by an individual or company offering CC that they may not be experts in this particular field. You must always ensure to approach a reputable company such as Navigate Business Recovery, to correct your credit file.   

Can I correct my file itself?

You can correct your credit file by yourself and a copy of this can be obtained from credit reference agencies usually Experian or Equifax. However, Navigate Business Recovery can obtain the same report for you but in addition provide you with detailed analysis and guidance to possibly improve your credit rating.   

Can I obtain credit afterwards?

It is not always guaranteed that you may be able to obtain credit after correcting your credit file, as loan companies, banks and credit card companies do not use just your credit file when making their decision. They also have their own rules and criteria which they use to determine their final decision.     

Does Credit Correction (CC) work?

CC does not always guarantee an improvement in your credit file, especially if the individual’s past credit history has suffered badly. What CC can do is improve the existing credit file by eradicating any County Court Judgements or defaults (with the agreement of the creditor).         

How to identify if a Credit Correction is a scam.

It is imperative to ensure that the CC you are pursing is not a scam and there are several indicators to look out for;

How were you approached? If you were contacted by email, be very cautious.

Have you been asked for a fee in advance?

If so, it should only be for a minimal sum initially to cover the cost for obtaining and analysing your credit file. Make sure to pay for work completed when you have received the final analysis.   

What if they are offering a loan?

Always read their terms and conditions as in most cases their interest rates would be extortionate and repayments impossible to maintain.

What are you been offered?

If you are advised they can remove all bad credit history from your file, be very cautious as there is no guarantee this will happen. If you are advised to provide false information on any credit application avoid this like the plague! It is a serious criminal offence which could lead to prosecution and possibly prison.                    

How do I proceed if I wish to do it myself?

If you decide to do it yourself, you will need to request a pamphlet called ‘No Credit?’ which is available from the Office of the Data Protection Commissioner. Please refer to https://ico.org.uk.

Obtain a copy of your credit file from Equifax or Experian (the two main credit reference agencies in the UK). You can easily download the file from their website. Once received you can query anything you think is incorrect or you can request to have a note added to your file stating why you think an entry is incorrect.

If there have been any County Court Judgements against you and it has been paid in full within a month you can elect to have this updated on your credit file to reflect this. However, the history of the debt may not be deleted from you credit file. If a County Court Judgement has been paid off after one month, you may still request for it to be marked as ‘satisfied’ on your credit file.       

How to proceed if you wish not to do it yourself? Be vigilant on who you approach and make sure it is a reputable company that you use. Preferably a company that has a good reputation and ensure that the company is regulated to proceed on your behalf (e.g. Accountants regulated by the FCA, Solicitors regulated by the Law Society).   

It is also best to shop around and compare quotes from several different companies, along with any good reference/past successes the company can provide to you. On a final note, make sure you are fully aware of the company’s terms and conditions. 

Please feel free to contact Vee Bharakda at Navigate Business Recovery on 07961-116321 or 01494-786000.

DISCLAIMER This blog / article is for information and interest only. It is not a substitute for full professional advice, which will take account of the specific and individual circumstances surrounding your matter. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.

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T: 01494 786000 - M: 07961 116321