The Warning Signs
If you decide to respond to
a credit repair offer, beware of companies that:
Want you to pay for credit
repair services before any services are provided;
Do not tell you your legal
rights and what you can do-yourself-for free;
Recommend that you not
contact a credit bureau directly;
Suggest that you try to
invent a "new" credit report by applying for an
Employer Identification Number to use instead of your Social
Security Number;
or Advise you to dispute all
information in your credit report or take any action that
seems illegal, such as creating a new credit identity. If
you follow illegal advice and commit fraud, you may be
subject to prosecution.
You could be charged and
prosecuted for mail or wire fraud if you use the mail or
telephone to apply for credit and provide false information.
It's a federal crime to make false statements on a loan or
credit application, to misrepresent your Social Security
Number, and to obtain an Employer Identification Number from
the Internal Revenue Service under false pretenses.
Under the Credit Repair
Organizations Act, credit repair companies cannot require
you to pay until they have completed the promised services.
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