How to Avoid Fake Credit Repair Companies

The fact is, no one can remove bad information from your credit report if it is correct and timely. If a debt, bankruptcy, or other item has been accurately reported, it stays on your credit report for up to 10 years. Negative data may be deleted if found to be incorrect or out of date.

Legitimate credit repair companies say they know how to navigate the intricacies of credit reports to find and fix these errors. But they can’t legally do anything you couldn’t do yourself, cheaply or for free: File disputes with major credit bureaus (Equifax, Experian, and TransUnion) about negative items , in the hope that the investigation will show them that they are wrong.

Fake credit repair companies use illegal tactics or use the promise of clean credit to trick you into committing crimes yourself, like fraud or identity theft. They may offer to sell you a new social security number to use when applying for a loan. The number was probably stolen, possibly from a child, and using it could land you in jail.

Scammers may also offer you another nine-digit number called a CPN (Credit Privacy Number or Credit Profile Number), or ask you to obtain an Employer Identification Number (EIN) from Internal Revenue. Service. Using any of them can also land you in legal trouble.

And scammers will charge you huge sum for such dangerous advice. A company that was taken down by the FTC in 2019 allegedly defrauded consumers of more than $6.2 million and threatened legal action against those who dared to complain.

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