Credit Repair Fraud and Credit Repair Scams
Credit Repair Fraud: Avoid these consumer credit reporting and repair scams!
WARNING! Credit repair advertisements that claim to erase bad credit or legally create a new credit identity for you are dangerous and illegal!
Credit Repair Scams
Don't be fooled by companies promising to repair bad credit by establishing a whole new credit identity for you - it's illegal!
You can be prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit with false information. It is a federal crime to:
- make false statements on a loan or credit application;
- to misrepresent your social security number; and
- to obtain an Employer Identification Number (EIN) from the Internal Revenue Service under false pretenses.
Your state may have a law strictly regulating credit repair companies. If you have lost money to credit repair scams, contact your State Attorney General or the FTC for help:
- State Attorney General Web Sites
- Consumer Protection Laws - State Listing
- Federal Trade Commission Complaint Form
The National Fraud Information Center accepts consumer complaints about telemarketing and Internet credit repair offers at 1-800-876-7060.
Many companies offering credit repair services provide nothing more than a cheap kit containing form letters, that you still have to fill out and send to the credit bureaus yourself! More Info on Repair Kits
Credit Repair Choices
If your credit files contains inaccurate or outdated information, then you can repair your own credit or hire a credit repair company. The problem is many so-called credit repair companies end up costing you money; sometimes putting you in even worse financial shape than before. If your reports are not too bad, you can correct the errors yourself with a little patience and persistence. Your first step is to obtain a copy of your credit reports from the three national credit bureaus.
If you've been denied credit in the past 30 days, you can request a Free Credit Report from the credit bureau that provided a report to the creditor who denied the credit. Use this Sample Letter
If you have not been denied credit or are not unemployed then you'll need to purchase your credit reports. The best method is to purchase a comprehensive 3-in-1 Credit Report Online Instantly