The Federal Trade Commission (FTC) and the Consumer Finance Protection Bureau (CFPB) say that you should be wary of companies that claim they can repair your credit. These companies are commonly called credit clinics. They don’t do anything for you that you can’t do on your own for free.
Beware and consider not dealing with organizations that offer to create a new identity and credit file for you. The FTC, CFPB, and state attorneys general have filed legal actions against some of these organizations. The FTC, CFPB, and others warn that the following claims or actions signal that you may be dealing with a credit clinic:
- The company asks for money up front and charges you before they’ve performed their services.
- The company guarantees to remove late payments, bankruptcies, or similar information from a credit report.
- The company charges a lot of money to repair credit.
- The company asks you to write to the credit reporting company to verify the same credit account information in the file, over and over, even after the information has been determined to be correct.
- The company doesn’t want to or can’t provide a business address.
- The company pushes you to decide to engage them right away.
EACM, Inc. 