Credit Report

Credit Repair - Scam Artists - Be Aware

• Be aware of newspaper advertisements, radio advertisements, TV advertisements, internet advertisements, mail advertisements, and calls from telemarketers offering credit repair services such as this:
  
  
  • Credit Problems? NO problem...
  • We can erase your bad credit - 100% guaranteed.
  • We can remove bankruptcies, judgments, liens, and bad loans from your credit file, FOREVER!
  • Create a new credit identity - legally.
    
    
• Don't believe these statements. Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to erase accurate negative information in your credit file so you can get a credit card, auto loan, home mortgage, insurance, or even a job. The scam artists who run these ads can't deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report, most simply vanish with your money.

• The truth is no one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost.
  
  
• You can dispute genuine mistakes or outdated items in your credit report for free. Under the The Fair Credit Reporting Act (FCRA), both the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the consumer reporting company and the information provider.
  
  
• Only time, a deliberate effort, and a personal debt repayment plan will improve your credit report.
  
  

The Warning Signs

• If you decide to respond to a credit repair offer, look for these tell tale signs of a scam:
  
  
  • Companies that want you to pay for credit repair services before they provide any services. It is against the law.
    
    
  • Companies that do not tell you your legal rights and what you can do for yourself for free.
    
    
  • Companies that recommend that you not contact a credit reporting company directly.
    
    
  • Companies that suggest 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.
    
    
  • Companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
    
    
• Do not let anyone encourage you to violate federal law. If they ask you to make false statements on a loan or credit application, misrepresent your Social Security number, or advise you to get an Employer Identification Number from the Internal Revenue Service under false pretenses, you will be committing fraud.
  
  
• You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It is a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
  
  
• If you think you might have paid a company to repair your credit, contact the Federal Trade Commission (FTC). You can file a complaint at the Federal Trade Commission (FTC) website at www.ftc.gov or by calling toll free 1-877-FTC-HELP (1-877-382-4357). You can also ask for free information about recognizing credit repair scams and building a better credit record.
  
  

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