The FTC and Credit Repair

Fraudulent credit repair companies have long been the target of FTC investigations culmination most recently in"Project Credit Despair" which snared 20 credit repair companies in Feburary 2006.

Fraudulent credit repair companies have long been the target of FTC investigations, culminating most recently in Project Credit Despair which snared 20 credit repair companies in February 2006.

The Federal Trade Commission (FTC) is responsible for enforcing consumer protection laws in the United States. In its capacity, the FTC offers a number of suggestions and warnings to consumers regarding credit repair organizations.

Beware of credit repair services that claim they can remove items that are still within the statute of limitations and that you owe. The bureaus will only remove items it the creditor agrees to (if it is a mastake or item does not belong to you or at times if the account is paid in full)

Not every item on your credit report is being picked up by the scoring moduals and are better left alone, disputing some items on your credit report could bring your scores down. Disputing is something that the public can do them self. However, a evaluation will tell you what is in your scores and what is not. Therefore you are not disputing items that will bring your scores down if they are varified by the creditors as a valid account. Dont fall prey to credit repair companies that claim that the bureaus only have 30 days to varify and if they don't respond within that time, the account will be removed. If the varification is not returned to the bureaus, it will fall off until theyget the verification and will be put on your files again.

Beware of credit repair services that don't disclose your rights

Consumers have the right to attempt to repair their own Credit. Credit Plus, LLC helps those clients who prefer do it themself. This process is fairly simple if you handle it properly. You don't need to pay a Credit Repair company to do this for you. You just need simple advise. A Credit Specialist will be able to provide you with an evaluation, addresses to all three credit bureaus and a sample letter that needs to be sent to the bureaus. (It is important that your wording is correct, as this depends on how the credit bureaus respond to your request)

Beware of credit repair services that advocate "new" identities
It is unlawful to create a "new" identity by applying for an Employer Identification Number (EIN) to replace one's Social Security Number. File segregation is a serious crime that can result in fines or imprisonment.

Beware of credit repair firms that misrepresent their expertise

Claims such as "25 years of experience" can be misleading. That number often represents the combined years of attorney experience, not the actual length of time that the firm has been practicing.

Beware of companies that imply FTC endorsement

The FTC does not endorse any business. If a credit repair organization implies FTC endorsement, you would do well to proceed with caution.