Credit Cleaning Companies: Illegal! Must read!
Beware on of the latest internet pitches: “Remove poor credit from your credit report immediately and permanently!” Claims of guaranteed credit repair are out and out false and may place clients in jeopardy of committing a felony.
The Tactics: A common theme or “strategy” is to tell clients to apply for a new Social Security Number, Employer Identification Number, or Taxpayer ID Number — all are illegal.
Another method: inundating credit bureaus with letters disputing negative information on a credit report, in hopes they will default on the 30-day limit allowed to respond to such requests.
Ethical Ways to Do It Yourself: What so called credit cleaners don’t tell you is that instead of paying them, you can work to repair your credit yourself if there is an error on your credit report.
How? Contact your creditor personally. Inaccurate info on your credit report can often be removed with a phone call to the creditor. Be calm and respectful, never aggressive or angry. Even if you paid a bill late years ago, you may be able to convince them to remove the bad mark on your credit report, especially if there were mitigating circumstances.
Brochures about credit repair schemes are available at http://www.ftc.gov or by calling toll-free 1-877-382-4357.