Credit Rehabilitation Services Inc

Credit Repair Scams

Getting a New Social Security Number

Individuals are only permitted to have one Social Security number. It is against the law to use a different Social Security number to create a false identity.

Getting a Federal Employer Identification Number

(Abbreviated as EIN or FEIN)  Proponents of this "file segregation" scam claim that you can obtain a federal tax ID number, as if you are a business, then get a clean credit record under that tax ID number. It is against the law to use an EIN to set up a false identity. Further, a new credit report under an EIN will not show any credit history. It is unlikely that a creditor would regard a new business with no credit history as a good credit risk.

Challenging Every Negative Entry on a Credit History 

 As a general rule, it is lawful for credit agencies to keep accurate records of negative entries on your credit history for up to seven years, and to keep records of any bankruptcies for up to ten years. There are certain circumstances where truthful negative information may be reported beyond those time periods.

As much as you do not like having negative information on your credit report, your ability to object to inaccurate information is not meant to be a license to harass honest creditors in an effort to remove accurate negative entries. However, the creditor MUST report to the credit reporting agencies information about you, that is 100% accurate.

Another illegal process that the scam artists use, is to promise to remove any type of public records information; such as bankruptcies, tax liens, repossessions, judgments and evictions from a consumer's credit file; (for an UPFRONT fee of course). 

The aforementioned is totally untrue, however in some rare cases where there was a mistake in recording the information at the court house; and a violation of the method used by the credit reporting agencies to obtain the information; can public record information be removed from a consumer's credit file.

However the average consumer does not have the knowledge nor the time to take on the challange of dealing with the court house or the credit reporting agencies; and would need the services of a professional.