In Defense of Credit Repair Companies

People are naturally skeptical when hearing about credit repair. The skepticism is partly due to the large number of scams. But also by the criticism he has received in mainstream media. The general consensus is that you should stay away from it - but that would mean you have to live with bad credit forever.
When traditional media and "experts" will tell you to stay away from credit repair because they say credit repair companies have no special privileges. That you have the right to do what a company can do. And this is true. However, credit repair companies are much more experienced, and I've worked with thousands of customers. Who do you think is more qualified to repair your car: you, with all the knowledge we have gathered from Internet and books, or the mechanic who has worked on cars for several years?
Because companies have worked with clients in different credit situations that have accumulated valuable experience to help you clean up your credit report. While they may not have a "in" with the credit bureau, often know the right way to dispute an item to get it removed from your credit report. That, moreover, have access to the templates of the same card disputes that have been sent to the credit bureaus often by customers trying to repair their own credit.
Another benefit of hiring a company is that you have someone whose main goal is your credit. Like most people, you have a job and not to repair your credit. Therefore, you can only spend so much time credit repair each day. The company, on the other hand, makes a living from credit repair so you will have much more time to spend working on your case.
In many cases, hiring an agency to help clean your credit is in your best interest. However, you should always ensure you are dealing with a reputable company. There are bad companies in every industry, but that does not mean that the whole industry is bad. Just make sure that the vet of the company. Take a look at his record with the Better Business Bureau and read reviews from other customers online.
The companies most reputable credit repair operate under the law. The Credit Repair Organizations Act was created to protect consumers from predatory companies credit repair. One of the main ways to make sure that is not being used is to prevent credit repair companies that require you to pay in advance. The companies that actually work in his name only after they have given credit repair services. So, you know what you're paying.
Finally, you can not place unrealistic expectations on any agency. Outstanding accounts are very difficult to remove permanently from your credit report because it can reappear in the next month when the creditor confirms the balance due. Pay your bills for the best result. Also, to see the best improvement in your credit score, you must have some positive accounts on your credit report. Even if the credit repair company to successfully remove items from your credit report, your score needs timely payments before they get better. That part of improving your credit score depends on you.

How to protect yourself against fraud

Credit Card Fraud and identity theft are rising at a rapid pace. Here's how you can protect yourself against them. There is some good news in your inbox. Your wait for a tax refund is over. At least that is what the mail says: "The Reserve Bank of India takes full responsibility of your tax refund to your bank account. Please select your bank and complete the refund request." All you have to do is open the link, key in your name, credit card number and code number at the back of the card, it says.

Wait a minute... Tax refund from the RBI? Credit card details for a refund ? If these questions didn't crop up in your mind, you may have fallen victim to Net fraud. The RBI or the Income Tax Department never ask for your PIN, passwords or credit card details. So, the next time you see such a mail, delete it.

Netizens regularly receive mails that tell them about jackpot prizes they have won and ask for bank or credit card details to transfer millions . "In the faceless, new era of banking, a customer's identification is done through his user ID and password. This has brought new vulnerabilities as anybody who possesses these can transact on his behalf ," says RVS Sridhar, president, IT & RBO, Axis Bank.

Common frauds

The most common Net attacks are phishing (fraudulent e-mails ) and vishing (fake voice messages and phone calls), data leaks while a card is inserted or swiped on a machine and copying of the personal identification number (PIN). Stealing information through counterfiet cards is also rampant. The data on the magnetic strip is electronically copied on to another card,while a surveillance camera observes the user's PIN, and this is then used without the cardholder's knowledge.

ATMs are more vulnerable than other channels. Says Uttam Nayak, country manager, Visa: "ATMs have poor security at the location and some controls on other platforms are missing."

If you travel abroad frequently and use your credit or debit card, beware . An RBI report says that counterfeiting typically happens during international travel.

Parampreet Kaur, 31, who works with an advertising agency in Delhi , had travelled to London in 2009 and shopped through her add-on card. A month after she returned, she got an SMS asking whether she had made transactions worth 2.82 lakh in Delhi. Realising that something was fishy she wrote to the foreign bank. "I was told that my card had been skimmed and eight transations were made on it," she says.

Even those who transact using cards on foreign Websites need to be careful. "Chances of fraudulent attack are higher on these as the 2-factor authentication mandated by the RBI is only for Web businesses in India ," says Bhavin Mody, senior product manager, ElectraCard Services.

Steps taken by banks

Banks are adopting measures to bring down fraud losses. Unusual transactions are immediately crosschecked with the customer. Card issuers are also moving away from the traditional magnetic strip-based cards to more sophisticated ones.

ATM manufacturers are doing their bit by adding security features. A fraudulent device inhibitor makes it difficult for criminals to attach foreign devices on or around the card reader. "The machine has a screen which asks the consumer 'Does your ATM card slot look like this?' If it looks different than that in the picture, consumers are advised not to transact and inform the bank," says Rakesh Aulaya, PR manager, South Asia Pacific, NCR, an ATM manufacturer.

Soon, many machines won't allow anyone else to use your card at the ATM. "Banks have started installing biometric ATMs. It is an effective way of preventing PIN theft," adds Aulaya. Banks are also issuing one-time use passwords to customers.

Preventive Measures

ATMs

While making transactions, watch out for suspicious looking devices around the machine. Block the view of the number pad with one hand while keying in the PIN. This may not be enough, though. "Criminals get better and better and may use small things which may lead to data leakages.

There may be a fake keypad atop the number pad. So, be alert," suggests Jelle Niemantsverdrie , principal consultant, forensics and investigative response, EMEA Verizon Business Security Solutions. If your card is stuck inside an ATM, be suspicious of anyone offering help.

Card transactions

While at a shop, keep an eye on the person swiping the card. If he swipes it on two different machines, there is something fishy. "If the merchant asks for the PIN, don't give it away. Punch in the number yourself," says Nayak. Register your e-mail ID and mobile number with the bank to get alerts whenever your card is used. Inform the bank when you get an alert for unathorised transactions.

Online transactions

Avoid using public computers for Net banking. "You must have the latest anti-virus , malware protection, personal firewalls, etc, enabled on your system," says Sridhar.

Phishing is a common trick. Don't supply information to fraudsters camouflaged as banks. "We already have your account number, customer ID, telephone numbers and other details . So, don't respond to mails that ask for this data," says Vishal Salvi, senior VP and chief information security officer, HDFC Bank.

It's a good idea to use virtual cards while transacting on foreign Websites. "The actual credit card number is never used, so virtual cards are the most secure way to pay," says Sridhar. Even if a fraudster gets hold of the card details, he won't be able to re-use these as the validity is for a single transaction.

Phone banking

While mobile banking frauds are few, data theft can happen easily via this channel. If the phone is stolen, inform the bank and get the registered mobile number changed because banks use mobile phones as another layer of securing transactions by messaging a one-time password.

Mumbai-based playback singer Vibha Dutt was going out of town, but her SIM was not working. The mobile service provider told her that she should collect it personally when she returned. By the time she returned , someone had collected the SIM and transferred 86,000 in eight instalments from her account. "I had used the Net banking facility on the mobile twice earlier," says Dutt.

Others

Be careful about banking information leaked through wasteful photocopies . Sunil Thatte, 27, a financial services industry professional in Mumbai, landed in trouble due to the misuse of a discarded photocopy of his PAN card. He got a call from a Pune-based company asking why he had fraudulently transferred a cheque to his Axis Bank account in Pune. Thatte was surprised as he never had an account in Pune. Later , the police found that the fraudster had used his PAN card copy, changed the picture and created a benami account in his name.

He then made a cheque in Sunil's name, taking help from a company insider, and deposited it in the benami account to encash 2 lakh.

"When someone is travelling by an airline and the ticket is booked using your credit card, a photocopy of the card is needed with the traveller . In such a case, strike out the CVV or CVC number from the back of the card," says Mody.

Discard cards and important documents properly. Cut the cards diagnolly so that the magnetic strip is destroyed . "Never throw your receipt in a public trash container. Avoid speaking out your account number if others are within hearing distance ," says a MasterCard spokesperson . Change the passwords and ATM PINs as soon as you get them.

10 Steps that can protect you from loss

Register for transaction alerts via SMS and e-mail . If you change your mobile number, update it with the bank. Reduce the limit on your credit card if you use it sparingly. Use virtual cards for e-shopping . Make use of the virtual keyboard wherever possible. Instead of going to the bank's Website using links in e-mails , type the Web address directly. Memorise the 3-digit CVV number at the back of the card and scratch it out.

Do not leave unwanted photocopies of essential documents at the photocopier. If you lose your phone, deactivate all banking services linked to that number. Place your Internet router away from doors and windows and switch it off when not in use.