Consumers Warned By FTC Against Illegal Credit Repair Scams That Promise Quick Fixes

The Federal Trade Commission has warned that many “credit repair” services and social‑media tips promising quick fixes are illegal scams that can leave people worse off, financially and legally. These schemes often target people who urgently need better credit to rent a home, buy a car, or qualify for a loan.​

What the FTC is warning about

• Many companies and influencers falsely claim they can erase accurate negative information or “clean” a credit report quickly, which cannot be done legally.​

• Some advise people to file fake identity‑theft reports or dispute debts they know are valid, which is considered fraud and can lead to fines or even prison.​

Clear red flags of a credit repair scam

• Asking for upfront payment before doing any work, which is prohibited under federal credit‑repair laws.​

• Promising a “new credit identity” or selling a CPN or EIN to use instead of a Social Security number, which can amount to identity‑related crime.​

• Telling you not to contact credit bureaus or creditors directly, or to lie on loan or credit applications.​

What credit repair companies are not allowed to do

• They cannot legally remove accurate, current negative information from your credit report, no matter how much you pay.​

• They cannot charge you before they actually provide services and must give you a written contract and a three‑day right to cancel without charge.​

Safer ways to improve your credit

• Check your credit reports regularly and dispute only information you genuinely believe is wrong or outdated.​

• Focus on consistent on‑time payments, lowering credit card balances, and avoiding new unnecessary debt, which are the lawful ways to rebuild credit over time.​

Where to get help or report a scam

• For free, legitimate information on fixing credit, the FTC provides consumer guides and FAQs on improving credit and spotting scams.​

• If you suspect a credit repair scam, you can report it to the FTC and your state attorney general or consumer protection office so enforcement agencies can act.​