Earlier this week, the Federal Trade Commission (FTC) announced plans to target 33 credit repair agencies who violated both the FTC Act and the Credit Repair Organizations Act (CROA). According to an FTC press release, the agencies deceived customers by promising to remove accurate, negative information from their credit reports. The agencies also accepted advance payment for their services. Both actions violate the CROA.
The FTC launched what they're calling "Operation Clean Sweep" after receiving thousands of complaints from consumers like you. That's why it's so important to report unscupulous credit businesses. If the FTC receives enough complaints, they'll possibily file a lawsuit that could recover some, if not all, of your losses.
Credit repair organizations make some lofty promises, but truthfully, they're unable to act on those promises. You cannot legally remove accurate information from your credit report unless the reporting time limit has expired. If these companies promise otherwise, they're violating federal law. On top of that, credit repair companies can't do anything to improve your credit that you can't do yourself. You're better off researching credit repair, saving some money, and doing it yourself.Credit Repair Resources: