Previous Story
AG warns against credit repair scams
|
Posted on Feb 24 1999
Acting Attorney General Maya B. Kara yesterday warned the public against companies operating in the commonwealth which offer services to “repair” credit for a fee.
Kara said there has been a considerable fraud in this industry, victimizing unsuspecting consumers who were charged thousands of dollars for services which were either not rendered or ineffective, and could have been done without assistance from such companies.
“Some activities are even illegal and consumers have committed felony offenses at the direction of these unscrupulous operators,” Kara said in a press release issued by the Office of the Governor’s Press Secretary.
Thirty-one firms have been recently targeted by the Federal Trade Commission in the United States for such practices as guaranteeing consumers they could have negative information removed from their credit reports and restore their credit worthiness for a fee.
Some of the companies even encouraged people to use false Social Security numbers or obtain Employer Numbers from the International Revenue Service and create a new credit identity, a felony offense.
The FTC recently settled cases against credit repair defendants who under the settlement are prohibited from representing that they can improve consumer credit reports by removing truthful negative information, misrepresenting their ability to improve credit reports, as well as their products or services they sell; and accepting money in advance.
The press release says consumers should be aware that credit reports might contain truthful, accurate, negative information for up to seven years. As long as the information is truthful and accurate, there is no action can be taken to have it deleted.
David Lochabay, consumer counsel at the AG’s office, advised consumers whose credit information contain inaccurate reports to complain to credit-reporting agency. The agency must verify the complaint in 60 days and remove it from the report.
However, if a consumer disagrees with the report, one may write a letter to agency which will be attached to the credit information.
