Promises that signal trouble
Credit repair fraud usually involves companies that charge before performing services, promise to remove accurate negative information, or tell customers to dispute everything regardless of the facts. A more serious version sells a so-called credit privacy number, a substitute identifier meant to build a new credit file, and using one on credit applications can expose the customer to criminal liability for false statements. The federal Credit Repair Organizations Act bars credit repair companies from charging before services are fully performed and requires written contracts that include a right to cancel. New York has its own credit services law as well. Accurate, current negative information generally cannot be removed simply because someone disputes it.
Records and cancellation
Keep the contract, the disclosures you received, payment records, and any letters the company sent to the bureaus in your name. If you want to stop, cancel in writing and ask your bank or card issuer to block further charges. Pull your credit reports from each bureau to see what was actually disputed and whether any accounts or addresses were added. If you were sold a credit privacy number or told to apply for credit using one, stop using it and talk to a lawyer before making further applications. You can dispute inaccurate information with the bureaus yourself without paying anyone.
Claims and complaints
Federal credit repair law allows consumers to sue companies that violate it and, in appropriate cases, recover damages and attorney's fees. Complaints can also go to the Federal Trade Commission, the Consumer Financial Protection Bureau, and the New York Attorney General. In reviewing your situation we look at what was promised, what was charged, and what was actually done, as well as whether your credit reports contain errors that call for a separate dispute under fair credit reporting law. If the company used your information in a way that harmed you, such as opening accounts, that becomes part of the picture. We then discuss whether a demand, a complaint, or a lawsuit makes sense for the amount involved.
