Every day, companies
promise consumers who have poor
credit histories that, for a fee,
they’ll clean up their credit report
so they can get a car loan, a home
mortgage, insurance or even a job.
The truth is, these companies
can’t deliver an improved credit
report using the tactics they promote.
It’s illegal: No one can
remove accurate negative information
from your credit report. So
after you pay them hundreds or
thousands of dollars in up-front
fees, you’re left with the same
credit report—and a lot less
money.
Indeed, attorneys for the Federal
Trade Commission, the
nation’s consumer protection
agency, say they’ve never seen a
legitimate credit repair operation.
The fact is, there’s no quick fix for
bad credit. The only legitimate
credit repair starts with you—and
it takes time and a conscious
effort to pay your debts.
Recognizing A Credit
Repair Scam
If you see a credit repair offer,
here’s how to tell if the company
behind it is up to no good:
- The company wants you to
pay for credit repair services
before they provide any services.
Under the Credit Repair Organizations
Act, credit repair companies
cannot require you to pay
until they have completed their
promised services.
- The company doesn’t tell you
your rights and what you can do
for yourself for free.
- The company recommends
that you do not contact any of the
three major national credit reporting
companies directly.
- The company tells you they
can get rid of most or all the negative
credit information in your
credit report, even if that information
is accurate and current.
- The company suggests that
you try to invent a “new” credit
identity—and then, a new credit
report—by applying for an
Employer Identification Number
to use instead of your Social Security
number.
- The company advises you to
dispute all the information in your
credit report, regardless of its
accuracy or timeliness.
Did You Know?
Under federal law, accurate,
negative information can be
reported for up to seven years,
and some bankruptcies can be
reported for up to 10 years. To
learn how to improve your credit
and find resources for low- or nocost
help, see Credit Repair:
How To Help Yourself at
ftc.gov/credit or call toll-free
(877) 382-4357.
Companies that promise to
scrub your credit reports of
accurate and timely negative
information for a fee are lying—
plain and simple.
No company can legally
remove accurate and timely information
from your credit report. Protect Yourself From Credit
Repair Scams
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