FAQ

1. What is credit repair? Credit repair is a general term that refers to the practice of a consumer challenging inaccurate, misleading, or unverifiable information on the consumer's credit report to improve one's inaccurate credit standing.
2. Is credit repair legal? Yes, although it depends on the method. For example, while it is legal to challenge negative items on your credit reports which you believe to be inaccurate, misleading, or unverifiable, accurate information is supposed to remain on your credit report. By contrast, it is entirely illegal to create a "new" identity by applying for an Employer Identification Number to use instead of one's Social Security Number - a process known as file segregation - in order to escape responsibility by hiding one's credit history. File segregation is a serious crime and can result in fines or imprisonment.
3. Why does credit repair carry a negative connotation? Credit repair's reputation can be traced directly to exploitative and predatory companies operating within the credit repair arena such as those advocating file segregation. Many are reckless fly-by-night operations seeking a quick profit. Unsuspecting consumers are the unfortunate victims of such operations, and the damage inflicted upon them reflects negatively on the industry as a whole.
4. Aren't there laws regulating the credit repair industry? There are indeed. The most prominent one is the Credit Repair Organizations Act (CROA), a bill signed into law in 1996 to protect the public from unfair and deceptive advertising practices by credit repair organizations. Among other things, CROA requires that you be given a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract, as well as a contract that spells out your rights and obligations. Credit Attorney does both. Additionally, the Federal Trade Commission (FTC) investigates complaints about credit repair organizations and takes appropriate legal action. Fraudulent credit repair organizations have long been the target of FTC investigations, culminating most recently in Project Credit Despair which has snared 20 credit repair scammers to date.
5. How can I avoid becoming a victim of credit repair scams?  Avoid any credit repair company that will not tell you your legal rights and what you can do for free. Avoid any credit repair company that tells you not to contact a credit reporting company directly. Avoid any credit repair company that advises you to dispute all of the information in your credit report. Avoid any company that suggests creating a "new" credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number. This process is known as file segregation, and it is against the law. If you follow illegal advice and commit fraud, you also may be subject to prosecution.