Can A Credit Repair Company Erase My Credit?

How to Spot a Credit Repair Scam

You see ads on television, the Internet and even the side of the road promising to erase your bad credit.   If your credit history could use some improving you may be tempted to respond to these enticing ads.  

Before you respond to one of these ads, you need know you may be walking into a scam. Consumers with poor credit histories are targeted by companies with offers of erasing bad credit histories.   The truth is no one can legally remove accurate negative information from your credit report.  Consumers will often find that after they have paid hundreds of dollars to a company to clean up their credit report they are left with the same credit report, but less money in their pocket.

Louisiana law requires all credit repair businesses operating and/or advertising in Louisiana to post a $100,000 surety bond with the Attorney General’s Office.  

The Federal Trade Commission recommends consumers do their homework before obtaining the services of a credit repair organization.  

The following tips will help you spot a credit repair scam:

• Companies that want you to pay for credit repair services before they provide any services.
• Companies that do not tell you your legal rights and what you can do for yourself for free.
• Companies that recommend that you not contact a credit reporting company directly.
• Companies that suggest that you try to invent a “new” credit identity, then order a new credit report, by applying for an Employer Identification Number to use instead of your Social Security number.

If you have any questions regarding credit repair or believe you are a victim of a credit repair scam, please contact the Louisiana Attorney General’s Consumer Protection Hotline at 1-800-351-4889 or visit our website at www.agbuddycaldwell.com .  You should also visit the Federal Trade Commission’s website at www.ftc.gov .