Beware of Credit Repair Scams – Protect Yourself from Fraud
The credit repair industry is full of legitimate services, but unfortunately, it also attracts fraudulent companies that make false promises and take advantage of desperate consumers.
Common credit repair scams include:
- “Guaranteed 100-Point Increase in 30 Days” – Impossible & Illegal
- “New Credit File” or “CPN” Offers – This is Fraud
- “Pay Us Upfront for Guaranteed Credit Fixes” – Violates Federal Law
At Credit1Solutions.com, we help consumers identify fraudulent credit repair companies and ensure they receive safe, legal, and effective credit solutions.
How to Identify a Credit Repair Scam
Many fraudulent credit repair companies use high-pressure tactics and false promises to lure consumers into paying for services that are ineffective or illegal.
Red Flags of a Credit Repair Scam
🚩 They demand upfront payments before any work is done (Illegal under the Credit Repair Organizations Act – CROA).
🚩 They guarantee specific credit score increases – No company can legally guarantee results.
🚩 They promise to remove legitimate negative items – Only inaccurate, outdated, or unverifiable items can be removed.
🚩 They claim they can create a “new credit identity” using a CPN – This is identity fraud.
🚩 They discourage you from contacting the credit bureaus directly – Legitimate companies encourage transparency.
Legal Credit Repair vs. Credit Repair Scams
| Feature | Legitimate Credit Repair | Credit Repair Scam |
|---|---|---|
| Follows FCRA & CROA Laws | ✅ Yes | ❌ No |
| Charges only after work is completed | ✅ Yes | ❌ No |
| Provides written contracts & consumer rights disclosures | ✅ Yes | ❌ No |
| Uses legal dispute strategies | ✅ Yes | ❌ No |
| Makes guarantees about credit score increases | ❌ No | ✅ Yes |
| Creates new credit files or fake SSNs (CPNs) | ❌ No | ✅ Yes |
If a company violates any of these legal guidelines, they are likely a scam.
Common Credit Repair Scams & How They Work
- The “New Credit Identity” Scam (CPN Fraud)
What They Claim: “We can create a new credit profile for you!”
The Truth: They give you a fake Social Security Number (SSN), also known as a Credit Privacy Number (CPN)—using it is a federal crime.
- The Upfront Payment Scam
What They Claim: “Pay us today, and we’ll fix your credit!”
The Truth: Under CROA, credit repair companies cannot charge upfront fees.
- The “We’ll Remove Everything” Scam
What They Claim: “We can erase all negative marks—even if they’re accurate!”
The Truth: Only inaccurate, outdated, or unverifiable items can be removed from your credit report legally.
If a company makes any of these claims, stay away!
How to Protect Yourself from Credit Repair Fraud
If you’re considering credit repair services, take these precautions:
- Check for CROA Compliance – Any company that charges upfront is breaking the law.
- Ask for a Written Contract – You are legally entitled to a written agreement explaining your rights.
- Verify Their Business Credentials – Check if the company is registered with the Better Business Bureau (BBB) and has real customer reviews.
- Be Skeptical of Guarantees – No company can guarantee credit score increases.
- If a company violates any of these rules, do not use their services.
What to Do If You’ve Been Scammed
If you’ve fallen victim to credit repair fraud, you still have options.
Step 1: File a Complaint
✔ Report the company to the Consumer Financial Protection Bureau (CFPB).
✔ Submit a complaint with the Federal Trade Commission (FTC).
Step 2: Dispute Any Unauthorized Charges
✔ If the company took upfront payments, dispute the charge with your bank or credit card provider.
Step 3: Contact a Legitimate Credit Repair Service
✔ Work with a trusted credit repair company like Credit1Solutions.com, which follows all legal guidelines.
At Credit1Solutions.com, we use legal-backed dispute strategies to correct errors without violating federal laws.
How Credit1Solutions.com Provides Safe & Legal Credit Repair
- We follow the Fair Credit Reporting Act (FCRA) and Credit Repair Organizations Act (CROA).
- We do not charge upfront fees—clients only pay for work completed.
- We provide written contracts detailing your consumer rights.
- We use legal credit dispute strategies, not fake “credit repair hacks.”
- We offer security clearance credit verifications for military and government personnel.
Client Testimonials
Jessica T., Homebuyer
“I almost fell for a credit repair scam promising me a new credit identity. Credit1Solutions.com educated me on the risks and helped me repair my credit the legal way!”
David W., Small Business Owner
“After paying another company upfront and getting no results, I switched to Credit1Solutions.com. They delivered real credit improvements!”
Lisa M., Military Contractor
“I needed my credit fixed for a security clearance. Credit1Solutions.com helped me legally remove outdated items and protect my financial future!”
Frequently Asked Questions (FAQs)
How can I tell if a credit repair company is legitimate?
A legitimate company follows federal laws, does not charge upfront fees, and does not promise unrealistic results.
Is paying for credit repair legal?
Yes, but only if the company follows CROA regulations and only charges after services are completed.
Can a credit repair company remove bankruptcies?
Only if they are reported inaccurately. Legitimate bankruptcies cannot be removed before the legal reporting period expires.
Are CPNs legal?
No. Using a Credit Privacy Number (CPN) is identity fraud and can lead to criminal charges.
Does Credit1Solutions.com offer a money-back guarantee?
We offer legal credit repair services and a transparent process, but we do not guarantee credit score increases (which is illegal).
Fix Your Credit the Legal Way – Contact Us Today
Don’t fall victim to credit repair scams that promise instant results and violate federal laws.
✔ We offer transparent, legal credit repair solutions.
✔ We follow all FCRA and CROA regulations.
✔ We provide written contracts and real results.
✔ We help protect consumers from fraudulent credit repair schemes.