Credit Repair Scams

"Upgrade Your Credit!"

Click here to receive this free guide instantly by e-mail (delivered in seconds).

The companies behind these ads normally use credit repair tactics and methods that may be illegal and/or deceptive.

Accurate credit report information can not be removed without proper authorization. If it is illegally removed or altered, it may reappear with possible legal consequences.

Credit Report Facts

1. Accurate negative account information can be reported for seven years

2. Bankruptcy information can be reported for ten years.

3. Information reported because of employment for a job with a salary of more

$75,000 has no time limit.

4. Information reported because of an application for more than $150,000 worth of

life insurance has no time limit.

5. Information regarding a lawsuit or judgment can be reported for seven years.

6. Default information regarding United States Government insured or guaranteed

student loans can be reported for seven years.

Credit Repair

Unfortunately, credit repair companies target people with bad credit that desire good credit. But, only perseverance, time and a plan of action will help improve your credit. By law, there is nothing that anyone can do for you that you can not do for yourself.

The FTC On Credit Repair Shops
Steve Baker, Director of the Federal Trade Commission (FTC) in Chicago, says a prevailing myth about credit repair is that there are loopholes in the federal law that allows poor credit to be erased. It doesn't exist.

He says that in the past four years the FTC has not seen a legitimate credit repair clinic. "It's possible that these clinics are providing legitimate services to customers, but I've not seen it yet. When the law says that bankruptcy remains on your credit

report for 10 years, just how can it be legally removed?" questions Baker. "And, later when you are asked in your credit application if you've ever filed for bankruptcy, will you lie?"

He cites an example of one consumer who was told to steal his bankruptcy record from the county courthouse, so that the credit bureau could not verify its accuracy.

Dramatic? Yes. But it poses a good question -- how are credit repair services

removing bad credit? Worse yet, consumers have paid money upfront -- and the company disappears.

"Credit protection and credit repair" scams are one of the top consumer complaints reported to the FTC. The actual dollar amount lost by consumers to these scams is difficult to calculate, says Baker, because many people are too embarrassed to

complain. But, the FTC estimates the loss to consumers is easily in the millions. "This is an equal opportunity scam. Everyone has a credit report; anyone can suffer from a poor credit history," says Baker.

Additional Information

For more in depth information, including sample letters, forms, tips and step-by-step detailed information, click on the free publications link below.

Helpful Information

Free publications

Seminars

Credit and the credit scoring system

Credit and divorce

Legal debt collection procedures

Credit card industry secrets

Is bankruptcy right for you?

Site map