“Credit repair” companies charged by the FTC
March 20, 2009
The Federal Trade Commission is cracking down on companies that are making false promises to repair people’s credit.
The FTC charged seven “credit repair” companies with “violating federal law by falsely promising to remove negative information from consumers’ credit reports, even information that is accurate and current, and by charging an up-front fee and failing to provide written disclosures.”
The FTC is trying to make the companies stop committing the violations and pay restitution to consumers.
You can read a complete copy of the FTC’s news release about the charges here.
This was welcome news to my ears. There are so many of these companies making promises they can’t keep. Some of these companies even disguise themselves as law firms to gain the consumers’ trust.
No one can remove accurate information from your credit report. If there is inaccurate information contained in your credit report, you can dispute the information yourself. You do not need to pay someone to perform this service for you.
It’s up to the consumers to help agencies like the FTC find these companies.
If you suspect a company is engaging in deceptive business practices, it’s very important that you report the company to the FTC.
You can file a complaint at (877) 382-4357. You can also file a complaint online by going to the FTC’s Complaint Assistant.
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