Written disclosures and a written contract are required for credit repair services. Under the federal Credit Repair Organizations Act which took effect on April 1, 1997, credit repair services (except for nonprofit organizations, banks and credit unions, and creditors themselves) must give consumers written details of the offer before any agreement is made. This applies to companies operating either within a state or interstate, by telephone or any other means. No agreement is binding unless there is a written contract signed by the buyer, and he or she has three business days to cancel. No payment can be requested until the promised services have been fully performed.
	Don't pay money upfront for credit repair services. It's against the law for a company to require payment before the promised credit repair services have actually been performed. If the services are offered through an interstate phone call, the federal Telemarketing Sales Rule says that the company cannot ask for payment until it has provided you with proof of the promised results by giving you with a copy of your credit report that has been issued by a credit bureau more than six months after the corrections were made.
	You can correct your credit record yourself. If there is a mistake in your credit record, contact the major credit reporting agencies to find out how to make corrections yourself. It's simple and there is no fee. If you have just been denied credit because of a mistake in your report, you can get a copy of it for free. Otherwise, there may be a small charge for obtaining your report if you want to check for inaccuracies. The Federal Trade Commission publishes information on credit history self-help and how to avoid scams.
	No one can remove negative information if it is accurate, even for a fee. Only incorrect information can be erased from your credit report. Accurate negative information remains a part of your record for at least 7 years from the time it is reported (10 years for bankruptcy). Don't believe any company that promises to remove negative information; there is no legal way to do so.
	You can include an explanation in your report concerning negative information. If the information is accurate but you have a good explanation, such as falling behind on payments because of a sudden illness or unemployment, you can place a short statement in your credit file. You can also explain if there is a disagreement over whether you owe a debt; for instance, if you refused to pay for something because it was defective. This may help if you are applying for a loan or other credit in the future.
	You can't create a second credit file. Don't believe anyone who offers to help you get credit by creating a second credit file using a tax-id number or a second social security number. This is sometimes called "file segregation." It's illegal, and you could be subject to serious penalties.
	Get help rebuilding your credit record from legitimate organizations. Consumer Credit Counseling Service, a nonprofit organization, provides low or no cost services to consumers who need a plan to repay debts and improve their credit. To find the nearest CCCS office, call toll-free, 1-800-388-2227.

If you need advice about a telephone solicitation or you want to report a possible scam, call the NFIC hotline at 1-800-876-7060. You can also ask questions or report fraud using our online forms.

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