If one decides to respond to a credit repair offer, the FTC recommends looking for these tell-tale signs of a scam: ■ Companies that want you to pay for credit repair services before they provide any services. ■ Companies that do not tell you your legal rights and what you can do for yourself for free. ■ Companies that recommend that you not contact a credit reporting company directly. ■ Companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number. ■ Companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.
Originally published in the Santa Monica Daily Press print edition on September 27, 2006. Read the original PDF.