Don’t Fall for ‘Credit Repair’ Scams!

November 10, 2021

If you’ve struggled to meet credit card payments, defaulted on loans or declared bankruptcy, it can lead to frustration (when you’re denied a loan, an apartment rental or a credit card you’ve applied for) or penalties (interest rates can be ‘tiered’ according to your credit rating). So when you see an ad offering to help you repair or re-create your credit score by erasing bad credit information (even if it’s true), or promising to help you to start over from scratch, it can be very tempting.

Unfortunately, these offers are not what they seem to be. You can easily end up paying hundreds of dollars, without legally improving your credit score. If you have a history of late or missing payments, or have otherwise failed to live up to your financial obligations, you should know that there is no quick fix.

How the scam works

Typically, the ‘credit repair company’ will claim they can help you repair or hide a bad credit history or bankruptcy – for an up-front fee and, possibly, a continuing monthly fee. Once you pay, they’ll provide you with a nine-digit number they may refer to as a CPN (a Credit Profile Number or Credit Privacy Number), but it’s really a pirated Social Security Number (SSN) that they have purchased from someone who steals personal identities, or taken from a child. Alternatively, they might instruct you to apply for…

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