Recognizing a Credit Repair Scam | Page 1

"You have the right to a free credit report from AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law."

The FTC wants to hear from you if you paid for what you thought was your free annual credit report.

Everyday, companies target consumers who have poor credit histories with a promise to help clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service.  The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote.  More on Credit Repair and Debt Consolidation

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 fees, you’re left with the same credit report and someone else has your hard earned money.

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: It’s 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. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.

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