Credit repairs scams are very common as scammers take advantage of people with debt problems and promise to fix their credit and clear their credit report of adverse information for up front fees. Recently the Attorney General of Arkansas shut down companies operated by Latrese and Kevin Hargrave who advertised credit repair companies that could “erase bad credit” for a $250 fee.
Don’t fall prey to scammers operating phony credit repair companies. and never pay an upfront fee to one of these companies. Advance fees for credit repair companies that operate for profit are banned by the Credit Repair Organizations Act. Negative information on your credit report remains on your credit report for seven years and bankruptcies for ten years. Anyone who tells you otherwise is just trying to scam you. Many of the scam credit repair companies use illegal tactics such as applying for a federal employer ID to use as your Social Security number for credit. This is illegal. If you need real credit counseling you should consider contacting companies that are afiiliated with either the Association of Independent Consumer Credit Counseling or the National Foundation for Credit Counseling.