Carmelas Credit Repair
Carmelas Credit Repair is run by Scott Melander. The business was started by Scott Melander, who was a U.S. Air Force Reserve member from 1972 1984, and then worked for several other car dealerships before opening his own credit repair store in 1984 known as‖C.R. Inc.
What do you know about the credit repair industry? Well, most people probably know that it exists, but they don’t really understand how it works. What happens is that a debtor gets a collection letter from a creditor or collection agency, usually through the mail. The letter tells the debtor to pay off a debt within a certain time frame or else there will be “action” taken against the debtor.
So the debtor goes to the Melander’s Credit Repair shop and applies for a loan to pay off the debt. What happens during the process? First, the debtor is examined by an appraiser to determine the value of the debt to be paid. These appraisals are usually based on a percentage of the actual debt balance, although this is not always the case.
Carmelas Credit Repair – Credit Repair is designed to increase a credit score
Next, the debtor is given a form with instructions on what he/she needs to do in order to pay off the debt. There is typically a budget included so that the debtor will know how much money they need to set aside each month to pay off the debt. Then, an agreement is made. If the debtor is unable to pay the agreed upon amount, there will be legal action. If the debtor is able to pay, then they will be asked to make future payments according to the budget set forth in the agreement.
In short, Carmelas Credit Repair is designed to increase a credit score, but it does so in a very sneaky way. The scam is in the fine print of the agreement. If the agreement is filled out correctly, there should not be any surprises for the consumer. If the agreement is filled out incorrectly, the consumer may find out that their credit score goes down because of the debt. This is not the intended result, so the credit reporting bureaus advise consumers to seek other means of improving their credit score. If one does not work, there are other options to consider.
Carmelas Credit Repair has some negative reviews online. One credit report website says that it is “probably the worst company I have come across”. However, there are also many satisfied customers to take advantage of. The only negative review that I could find online was from a loan modification company. The majority of feedbacks are very good for Carmelas, with just a few people saying that it was not what they expected.