I’m sure you’ve seen these types of advertisements all over the place. It seems like when I’m in my car at a stoplight I see the signed stapled to the light pole “WE FIX CREDIT”, or flashing advertisements on the internet “Legally Erase Bad Credit”. I’ve even met people who claim that they have a “special disk” that holds “all” the secrets of credit repair and I’ve purchased a few books from Credit Repair clinics. I’ve also heard one couples horror story about paying a mortgage lender $2,000 to hack into the credit bureaus computers and remove all the bad credit.

My all time favorite scam that thousands of people have done is crediting a “new” identity. This is done by applying for a new social security number or slightly altering your social security number or name. Then you are encouraged to apply for new credit with this new identity. This whole concept is packaged and sold as “The secret that the Credit bureaus don’t want you to find out” and you typically buy this “program” online and download the book.

What this person or company is teaching consumers to do is quite frankly…. ILLEGAL! When a person signs a credit or loan application they are solemnly swearing that everything is true and correct. If they are not disclosing they have two social security numbers or misspelling the middle initial they are lying on the credit application and potentially committing bank fraud.

What these Change Your Identity companies are also neglecting to tell consumers is that with the “new identity” they will have No Credit. Having No Credit is just as bad, if not worse, as having Bad Credit. With both scenarios applying for new credit would require signing up for a secure credit card with a high interest rate. The difference between the people with the bad credit is that they would not be commit bank fraud by putting a bogus or newly developed social security number.

Being a Credit Bureaus FICO Specialist I can testify that it is true you can improve your credit anywhere from 25 to 200 points in as little as six weeks. However, it is not something that a person who is advertising on a light pole or teaching your how to obtain a new identity can do for you. Having good credit is more than just trying to take off negative marks on your credit report or trying to create a new identity.

If you have been encouraged by a Credit Repair Agency to alter your identity or have been told that they have “friends” who work at the Credit Bureaus then I suggest that you file a complaint against them with the FTC (Federal Trade Commission)*. What many people are not aware of is in a Criminal Court of Law the excuse of “I did not know I was committing a crime” or “they made is sound so legal” usually does not hold up as a Defense to Committing a Crime.

FTC claims and actions taken against Credit Repair Clinics on behalf of the average consumer

http://www.ftc.gov/opa/2003/08/nationwide.htm

http://www.ftc.gov/opa/1998/08/quaite-2.htm August of 1998

* The Federal Trade Commission regulates credit bureaus and credit repair organizations. For more information contact: The Public Reference Branch, Federal Trade Commission, Washington, D.C. 20580.