Credit repair is totally legal, but some companies are not. Our fraud detection guidelines are designed to help you tell the difference. Fraudulent credit repair companies have long been the target of FTC investigations, culminating in Project Credit Despair which snared 20 credit repair companies in February 2006.
The Federal Trade Commission
We proudly endorse the opinions of the Federal Trade Commission (FTC), particularly in regard to their views concerning credit repair agencies. The FTC is responsible for enforcing consumer protection laws in the United States. In its capacity, the FTC offers a number of suggestions and warnings to consumers regarding credit repair organizations.
The FTC’s concerns address the unethical individuals who have taken advantage of the rising demand of credit restoration by posing as credit repair companies on the Internet or via telemarketing or other advertising, making promises they either couldn’t keep or never intended to keep, and/or charging fees up-front and then vanishing after providing minimal and inadequate services – if any services at all. Several of these agencies encourage consumers to use unethical and even illegal tactics to clean their credit reports.
In an attempt to discourage these unscrupulous credit repair opportunists, the government has imposed strict regulations on credit repair agencies. Overall, these regulations are a positive step towards protecting consumers from disreputable credit repair agencies.
To avoid their scams, you, as a potential consumer, should be wary of any credit repair agency that won’t fully identify who they are (including a verifiable identity), or demand large fees in advance of services rendered. Consumers should avoid credit repair agencies that guarantee credit report results, encourage you to create a new credit file using an Employer Identification Number (EIN) or guarantee the ability to remove a bankruptcy from your credit report. Their methods are usually unethical and/or even illegal and may subject you to criminal liability.
If you believe that you have been the victim of unethical, misleading and/or deceptive behavior by a credit repair agency or law firm providing credit restoration services in an attempt to restore your credit, you should report them to the FTC immediately. Your cooperation in this regard will assist the FTC to find and eliminate the unscrupulous predators in an effort to provide a safer, fraud-free experience for everyone.
We believe timely information and knowledge breeds success and insures greater client satisfaction. If you have any questions about professional credit restoration, including if it is right for you, contact us.
Beware of credit repair services that request fees in advance
Unlike many of our competitors, we never charge you in advance for our credit repair services. We charge you only after the initial setup, consultation, and credit report analysis has been completed and the work performed. Avoid any company that wants you to pay for credit repair services before they provide any services. It is against the law.
Beware of credit repair services that don’t disclose your rights
Consumers have the right to attempt credit repair on their own. We offer our affordable services to those clients who prefer having professionals managing their credit disputes and creditor interventions.
Beware of credit repair services that advocate “new” identities
It is unlawful to create a “new” identity by applying for an Employer Identification Number (EIN) to replace one’s Social Security Number. File segregation is a serious crime that can result in fines or imprisonment. If you follow illegal advice and commit fraud, you may be subject to criminal prosecution.
Beware of credit repair firms that make outrageous claims
Claims such as “perfect credit in 30 days” or “your scored raised 100 points guaranteed” can be misleading. It’s also illegal for any company to advertise unbelievable claims such as these. Usually this is an automatic red flag for a scam artist. If it sounds too good to be true, it usually is.
Beware of companies that imply FTC endorsement
The FTC does not endorse any business. If a credit repair organization implies FTC endorsement, they are lying to you. Don’t fall for it, or you’ll risk being taken advantage of.
