FTC issues warning to credit repair web sites – Government Activity – Brief Article
INTERNET BUSINESS NEWS-(C)1995-2000 M2 COMMUNICATIONS LTD
US law enforcement and consumer protection agencies have sent warnings to over 180 web sites in connection with their ‘credit repair’ schemes.
Such schemes offer to restore customers’ creditworthiness for a fee but many may violate state and federal laws.
According to the US Federal Trade Commission (FTC), many credit repair operations misleadingly ‘guarantee’ to remove all negative information from consumers’ credit reports. Furthermore, over 60 operations claimed that they could legally provide a false Social Security number enabling the user to begin afresh with a new credit identity, but in fact this is unlawful.
Under the recently-introduced Credit Repair Organizations Act it is illegal to offer to improve a consumer’s credit report in return for a fee.
The FTC has issued e-mail notices and letters to the operators of the web sites to warn that they may be violating the law.
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