Credit Repair Scams and Fraud

Consumers with negative information on their credit report may want help fixing their credit. There are things a consumer can do themselves for free, but credit repair companies also charge to do the same things. Consumers considering a credit repair company should know the rules these companies must follow – for their own benefit, and so they know how to identify a dishonest company or scammer.

Credit repair companies must:

· Provide a detailed contract that explains the total cost of their service and the consumer’s legal rights (including a three-day right to cancel at no charge) before they do any work.

· Be honest about what work they can do.

· Never remove true and up-to-date information, even if it is negative, from a credit report.

Scammers may:

· Ask to be paid up-front before they provide any help.

· Tell consumers not to contact the credit bureaus directly.

· Suggest disputing accurate information, lying on applications, or filing false identity theft reports.

In addition, some online influencers are telling consumers they can improve their credit by filing a false identity theft report about a debt they owe. This is fraud – a crime that could make things even worse for the consumer’s credit.

Consumers can take steps to fix their own credit by regularly checking their credit report (once a week online for free) at AnnualCreditReport.com. If they identify a mistake, consumers should contact the credit bureaus and the business that reported the information to have it corrected.