Credit Repair Fraud Proliferates

The truth is, no one can legally remove accurate and timely negative information from a credit report. But the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete.

There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act, you are entitled to a free copy of your credit report if you've been denied credit within the last 30 days, and you can request a free copy of your credit report annually for free by visiting www.annualcreditreport.com. You can also dispute mistakes or outdated items for free. Ask the credit reporting agency for a dispute form or submit your dispute in writing, along with any supporting documentation.

If you decide to respond to a credit repair offer, the Better Business Bureau suggests you beware of companies that:

• Do not tell you your legal rights and what you can do -- legally -- for free;
• Recommend that you not contact a credit bureau directly;
• Want you to pay for credit repair services before any services are provided; 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 by obtaining a federal employer identification number to use instead of a social security number. If you follow illegal advice and commit fraud, you may be subject to prosecution.
  

Also, remember that 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.