One More Time

We have once again been advised to warn our customers about telemarketing firms that advertise that they can "fix" bad credit ratings.

The Federal Trade Commission (FTC) says there are more than 1,100 credit "repair" companies estimated to be operation in the United States.

They will either promise to remove negative information from the person's credit report (which is false, because agencies can report bankruptcies for ten years and bad credit histories for seven years under U.S. law) or they will offer to create a new credit history by having the person apply for credit using an Employer Identification Number (EIN) instead of their Social Security Number.

Using this method to obtain credit from a financial institution is considered to be using false information, which is a federal offense, and is reportable by the bank on a Suspicious Activity Report.If there is inaccurate information on a credit report, the customer can go directly to the credit reporting bureau to have it corrected.

The FTC advised that lawsuits have already by initiated against "credit-fixing" telemarketers in:California, Indiana, Massachusetts, Missouri, New Hampshire, New Jersey, Wisconsin and Washington, D.C.

Copyright © 1996 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 6, No. 7, 5/96