The appeal of claims such as “Clean credit in 30 days! Guaranteed!” or “Plagued by poor credit? Our new credit package lets you start over with a clean slate!” can be very strong for people who financially hampered by a poor credit history.

These claims lead many people down very dangerous (often illegal) road every year.

If you’ve got a not-so-great credit record, things could get a lot worse for you if you end up falling for a credit repair scam.

Watch Out for the “Clean Slate” Pitch

Any one organization that promotes such claims is usually advocating an illegal method of getting credit. This usually involves getting the Credit Reporting Agencies to start a “new” file on you using a new identity.

This “new identity” is typically gained through a fresh IRS Taxpayer Identification Number (or a stolen or deceased person’s Social Security Number) which is then used to apply for new credit.

Illegal!!! These programs will charge the desperate customer anywhere from hundreds to thousands of dollars and the penalty for such activities can be severe. Using a Federal Taxpayer Identification Number for such activities is a felony and can result in fines, probation and jail time.

So when you hear such claims as mentioned above, consider them to be warning signs of credit repair scam!

A tip worth remembering

Any honest and sincere attempt to repair one’s credit report will involve a diligent, consistent and often time-consuming effort, whether done by a do-it-yourselfer or an experienced attorney.

It will never involve misrepresentations about one’s identity or outright illegal activites.

Now that we’ve identified the outright illegal outfits, let’s look at the aspects of the legitimate credit repair companies. (Yes there is such a thing!)

A reputable credit repair organization will:

• Educate you as to what to expect and give you details of the repair process
• Offer detailed personalized service. This includes 24 hour access to support personnel.
• Use the legal dispute process resulting in negative items being dropped from credit reports.
• Never charge an upfront fee for item removal.
• Never guarantee specific results.
• Give regular updates as to progress.
• Comply with the The Credit Repair Organizations Act.
• Use the Fair Credit Reporting Act (FCRA) to your advantage.

What to do if You’ve Been a Victim of a Credit Repair Scam

Many states have laws regulating credit repair companies. State law enforcement officials may be helpful if you’ve lost money to credit repair scams.

If you’ve had a problem with a credit repair company, dont be embarrassed to report it. While you may fear that contacting the government will only make your problems worse, remember that laws are in place to protect you.

Contact your local consumer affairs office or your state Attorney General (AGs). Many AGs have toll-free consumer hotlines. Check the Blue Pages of your telephone directory for the phone number or check www.naag.org for a list of state Attorneys General.

Lexington Law Firm is very successful in repairing and restoring credit and has many thousand of satified customers. You can stop living with bad credit and let a law firm remove your negative items from your credit report.