Protect Yourself From Credit Repair Scams (NAPSA)—Every day, companies promise consumers who have poor credit histories that, for a fee, they'll clean up their credit report so they can get a car loan, a home mortgage, insurance or even a job. The truth is, these companies can’t deliver an improved credit report using the tactics they promote. It’s illegal: No one can FE remove accurate negative infor- mation from your credit report. So after you pay them hundreds or thousands of dollars in up-front fees, you’re left with the same credit report—and a lot less money. Indeed, attorneys for the Federal Trade Commission, the nation’s consumer protection agency, say they’ve never seen a legitimate credit repair operation. The fact is, there’s no quick fix for bad credit. The only legitimate credit repair starts with you—and it takes time and a conscious effort to pay your debts. Recognizing A Credit Repair Scam If you see a credit repair offer, here’s how totell if the company behindit is up to no good: *The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair compa- nies cannot require you to pay until they have completed their promised services. The company doesn’t tell you your rights and what you can do for yourself for free. *The company recommends that you do not contact any of the three major national credit reporting companies directly. *The companytells you they Companies that promise to scrub your credit reports of accurate and timely negative information for a fee are lying— plain and simple. can get rid of mostor all the negative credit information in your credit report, even if that information is accurate and current. *The company suggests 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. *The company advises you to disputeall the information in your credit report, regardless of its accuracyor timeliness. To learn how to improve your credit and find legitimate resources for low- or no-cost help, see Credit Repair: How To Help Yourself at ftc.gov/credit. To file a complaintor to get free information on consumer issues, visit fte.gov or call toll-free, (877) FTC HELP (1-877-382-4357); TTY: (866) 653-4261.
