According to the Condusef, credit repair companies, as their name indicates, are companies that can negotiate your debts and even clean up your negative image in the Credit Bureau. The body points out that it does not exist as a legal figure.
Credit repair firms are not supervised by the government and the way they operate is determined by their employees. The offer that they make to erase your credit history in the Credit Bureau in exchange for money is not possible, they cannot do it.
Some repair companies support people whose debts are greater than 30,000 pesos. Photo: My Pocket.
Some repair companies support people whose debts are greater than 30,000 pesos, on credit cards, debit cards, loans or departmental cards. Users may be behind with their payments, or have reached over-indebtedness or inability to pay.
Functions of credit repairers:
The Condusef points out that credit repair companies offer these services:
Legal and financial advice: They consider your income, your expenses and the debts you have, then they calculate the amount of money that you can dedicate to pay your debts or if they can get you another loan to put together the payment scheme. They negotiate on your behalf: They negotiate the restructuring with the credit institutions and also negotiate the reduction to the amount of your debt. They divert the calls of the collection offices to them: An attractive aspect of the service that the repair companies offer is that they free you from the phone calls of the collection offices of your creditors.
The Condusef clarifies that the discounts or discounts offered by credit repairers depend on negotiation and the goodwill of your creditors.
If you consider necessary the intervention of a repair company to solve your payment problems, the Condusef suggests that you analyze the contract, see if you agree with the conditions established there, the cost, in short, everything that they indicate and what would happen if you drop out of the program or fall behind, once again, with payments.
The Condusef also warns that some repair companies charge for each phase of the process and others a monthly fee or a percentage of the decrease in your debt.
The Condusef recommends, if you find yourself in trouble paying your debts, that instead of requesting the services of a credit repair company, you go to any credit institution that you owe and with them you see the possibility of renegotiating the payment conditions .
More information in our Credits Section.