THE ATTORNEY GENERAL'S GUIDE TO CREDIT REPAIR SCAMS

A good credit report is one of the most important bargaining tools a consumer can possess. Yet, for a variety of reasons, some people develop a poor credit history. They may also fall victim to con artists or scams that prey on the consumer’s desperation by promising to restore the consumer’s good credit.

Many of these con artists call themselves credit repair companies and advertise that they are able to "erase bad credit! 100% guaranteed" or provide a "fast and easy way to get rid of bad credit history." They charge from $50 to $1,000 to "fix" a credit report. Most of the time, companies that advertise such wonders will take your money and do little or nothing to actually fix your credit.

• Know in advance that there are no easy or quick ways to repair an accurate, but negative credit history. Only time can repair it. This is true even if past credit problems were due to illness or unemployment.

• Before paying any money, contact the Attorney General's Office or the Better Business Bureau to see if any complaints have been lodged against the company.

• Be wary of a company that asks for money in advance to restore your credit.

• Credit Protection Services - These agencies charge the consumer for credit reporting information that, in many instances, is available for free.

• Guaranteed offers for Gold or Platinum Cards - These offers promise to build your credit rating, even if you have bad credit. These cards can be used only when purchasing items from the company’s catalogue.

• Checking Account Debit Scams - In these scams, a con artist contacts the consumer and reports fraudulent activity involving the consumer's bank account. The con artist then asks for the consumer's checking account number for verification purposes. Inevitably, this leads to an unauthorized electronic bank draft from that checking account.

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