Repair Your Credit By Legally Removing All Negative Accounts: It’s All Legal, I promise! (Just Don’t Report It To The Authorities)

I am sure that by now almost everyone has seen advertisements on the radio, television or the internet from companies or companies affiliated with law firms claiming to be “credit repair experts.” They boldly claim to be successful at removing from credit reports any derogatory accounts including short sales, foreclosures, and bankruptcies.

Most of the claims in these advertisements say, “We can clean your credit report and save you thousands,” “We remove foreclosures and bankruptcies from your credit report and best of all; it is all legal.”

Well, believe me when I tell you that they are lying to you! DON’T BE ANOTHER VICTIM of a credit repair scheme!

Today’s economy is a golden opportunity (in the literal cense) for these so called experts. They adapt very well to changes in the economy. During a booming economy, these companies use the consumer’s excitement to scam people out of their money. Nevertheless, in a slow economy they use the consumer’s fears to continue ripping people off.

The need to remove derogatory accounts like a short sale, foreclosure, collections, bankruptcy from credit reports and the need for new credit has resulted in aggressive marketing by these companies and law firms claiming to be credit experts.

Federal and state authorities warn that their promises may be deceptive and illegal. Why illegal? Well for starters it is against the law for organizations, companies, or individuals to collect fees upfront for credit repair services. It is also against the law to make promises of credit improvements that are not feasible, such as elimination of foreclosure or bankruptcy records that are accurate.

So, contrary to what you may here elsewhere, here is “the truth, the whole truth and nothing but the truth” about credit repair:

It is possible for any consumer to remove or modify derogatory information from their credit reports. However, this information has to be inaccurate or outdated.
No trustworthy company will ask you to pay money upfront because it is against federal law.
You should always stay away from companies that tell you not to contact a credit reporting company directly.
Stay away from companies that claim to be able to delete “all” your negative accounts or companies that advise you to dispute all your negative accounts.
Avoid any companies that suggest creating a “new” credit report by applying for an Employer Identification Number to use instead of your Social Security number. This is against the law and you could be subject to prosecution.
In addition, companies need to be registered with the California Secretary of State as “credit services organizations” before conducting their credit repair business, as required by California Law.

If you don’t follow this advice you will most definitely end up loosing your money on worthless products and with deceitful companies.

The Federal Trade Commission (FTC) launched “Operation Clean Sweep” in response to thousands of complaints from consumers throughout the nation against deceitful companies.

One of those lawsuits is against Successful Credit Service Corporation (also doing business as Success Credit Services) and Tracy Ballard (also known as Tracy Ballard-Straughn).

According to the FTC, Tracy Ballard from Woodland Hills, California promotes credit repair services through her company’s website and through seminars offering real estate investment and business opportunities.

Ballard posted recordings of herself on her website stating “If we get a client that’s got a Chapter 7 that just was discharged yesterday and included about 20 accounts in there,….maybe some extra tax liens,” their credit would be clear in about 9 to 11 months. Furthermore, she claimed to use a hard delete and further explained that “Once we remove it, it’s gone for good….we fix the credit 100 percent guaranteed whether it is a bankruptcy or a 30-day late.”

In wealth building real estate seminars held throughout the country, Ballard claimed to have special knowledge and special relationships that enable them to permanently and legally remove accurate negative information from consumers’ credit reports.

The company required an advance fee of $3,000 to $4,000. But once consumers caught on to the scheme, their requests for a refund were almost always denied. Unhappy consumers made several attempts to contact Ballard. In response, they received a variety of excuses and eventually were instructed to stop calling. Shortly after, the consumers’ emails and voice-mails went unanswered.

In another lawsuit, the FTC is suing Clean Credit Report Services based out of North Miami, Florida. The FTC claims the company’s radio ads promised that “the negative marks that appear on your credit report can be removed – legally! Things like late payments, collection accounts, charge-offs, repossessions, bankruptcy and identity theft. Clean Credit Report Services will remove all the negative remarks . . . in as little as three months.”

According to the lawsuit, customers were required to pay an advance fee for approximately $400. However, this fee simply provided consumers with a compact disc plus a book that provided instructions on how they could improve their credit files on their own.

As a result of “Operation Clean Sweep,” some of the operations and individuals charged with violating the FTC Act and the Credit Repair Organizations Act (CROA) are:

Nationwide Credit Services, Inc and James R. Dooley, based in Jacksonville, Florida
Clean Credit Report Services, Inc, Ricardo A. Miranda, Daniel R. Miranda and Ruthy Villabona, based in North Miami, Florida
Successful Credit Service Corporation (also doing business as Success Credit Services) and Tracy Ballard (also known as Tracy Ballard-Straughn), based in Woodland Hills, California
Advantage Credit Repair, LLC and Mark D. Solomon based in Chicago Illinois
RCA Credit Services, LLC and Rick Lee Crosby, Jr., based in Largo, Florida
Latrese & Kevin Enterprises, Inc (also doing business as Hargrave & Associates Financial Solutions), Latrese Hargrave (also known as Latrese V. Willimas), and Kevin Hargrave, Sr., based in Jacksonville, Florida and another office in Columbus, Ohio
Ace Group, Inc (also doing business as American Credit Experts, Inc, The Ace Group, Inc, The Ace Group, and Ace), Legal Credit Repair Center, Inc (also doing business as LCRC), Michael Singer, Melvin Kessler and Gerald Roth, based in Fort Lauderdale, Florida

Finally, here is video that may prove useful if you are drowning in debt and you are thinking about contacting a “Debt Consolidation company,” or a “Debt Solution company.” YOU HAVE BEEN WARNED!

Visit My YouTube Channel

Sources:

Miami Herald:
- Beware of Credit Fix-It Pitches
Federal Trade Commission:
- ‘Operation Clean Sweep’: FTC and State Agencies Target 36 ‘Credit Repair’ Operations

Comments

14 Responses to “Repair Your Credit By Legally Removing All Negative Accounts: It’s All Legal, I promise! (Just Don’t Report It To The Authorities)”

Brian C. Aber on December 23rd, 2008 3:53 PM

I believe Operation Clean Sweep did a good job by addressing the unsrucpulous companies in the credit repair industry. If a person if interested in professional credit repair than I would recommend making sure they are a member of NACSO. It is the trade organization for the credit repair industry. [LINK EDITED] nacso
Ney on January 7th, 2009 1:20 PM

Mr Brian Aber,

The company you work for, providing credit repair services, has a website that is administered by the same person that administers the website for this so called “Organization” that you mentioned on your comment (NACSO). This is according to WHOIS search results (here and here).

Therefore your attempt to self-advertise this so called “Organization” owned, operated, or managed by the same person who owns, operates or manages the same credit repair company you work for……let me tell you…..is not very professional or ethical.

If you decide to comment on this site, I require that you have a high level of transparency.

And in response to your comment about verifying a company that offers credit services, the correct organization to verify it against is the “National Foundation of Credit Counseling.”

This is a “true” organization and its (non-profit) members (many of them are approved HUD counselors) offer credit counseling, credit management and education about self credit repair.

Trustworthy companies offering credit services should have the distinct name of “Consumer Credit Counseling Service” or CCCS for short and be member of the NFCC.

FYI: It is illegal to request upfront fees for credit repair services.

Finally, after careful review of your comment, I decided to edit it the link of your so called “Organization.”

This site is full of information and everyone is welcome to input their comments; however, I don’t allow self-promotion of questionable and/or unnecessary services.
credit repair advice on April 18th, 2009 8:03 AM

credit repair advice…

I recently looked at my credit score and saw that it had gone up due to a few factors. These were mainly items like me not adding to my debt load and paying my bills on time all the time. I know there are a lot of people out there who have a bad credit…
National Credit Fixers – Matt Listro
credit repair companies on October 3rd, 2009 4:29 PM

Any company that states that they guarantee that your credit will be cleaned are FALSE. First of all there are factors involved and consumer laws which can work to the consumers advantage with the bureaus and the creditors placing inaccurate information on your Credit Report by law that information has to be updated 30-45 days or it is stated removed/deleted or updated. Credit repair and Credit Cleaning are two different meaning but there are credit repair companies out there that don’t educate the potential client on what’s the plan and goals in order to get your scores to a certain credit score based on us working together to clean your credit being that laws apply to incorrect information so therefore a deletion/removal has to happen and credit repair is starting with paying your bills on time and some other normal factors to repair credit. Feel free to go to our Credit Repair E-zine blog and sign-up.
Brian C. Aber on October 5th, 2009 8:19 AM

I’m surprised I missed your retort so I apologize for the delay and please allow me to respond.

I must correct you on your erroneous statement of The National Foundation of Credit Counseling being the place to go to inquire for reputable credit repair companies as it obviously has nothing to do with the credit repair industry.

Credit repair and credit counseling are two completely different industries and it would suit you well to understand that.

National Association of Credit Services Organizations (NACSO) is the trade association for the credit repair industry as featured on the 2009 September cover of Scotsman Guide.

Trustworthy credit repair companies will show their NACSO “Standards of Excellence” logo on the front of their website proving that they have gone above and beyond what the Credit Repair Organizations Act requires.

NACSO’s prime purpose is to provide a level of support for compliance with federal law for company owners and their employees.

I hope this helps and if you have any further questions on the difference between credit counseling and credit repair I would be glad to answer them for you.

Regards,

Brian C. Aber
Ney on October 12th, 2009 7:38 AM

Mr Credit repair companies,

You are very correct with your statement “Any company that states that they guarantee that your credit will be cleaned are FALSE.” However, there is no such thing as needing a company to repair or clean a credit report. Cleaning and/or repairing credit is simple. The reason why companies like yours exist is because there is so much information on the web that consumers can’t differentiate between good and bad information. For this reason, consumers end up paying fees for information and help that is available to them at no cost from credit counselors.
Ney on October 12th, 2009 7:39 AM

Mr Brian Aber,

Apparently you did not read my previous comment in its entirety; therefore, I will re-post part of it so you can read it and understand it.

This is what I said:

“And in response to your comment about verifying a company that offers credit services, the correct organization to verify it against is the “National Foundation of Credit Counseling.””

“This is a “true” organization and its (non-profit) members (many of them are approved HUD counselors) offer credit counseling, credit management and education about self credit repair.”

I am clearly stating that they offer both credit counseling and education for self-credit repair. I think it is very clear that I can tell the difference between the two!

Being featured on the 2009 Scotsman Guide does not prove anything. All it proves is that NACSO was willing to pay for the advertisement on such publication. Today, not even having a good rating with the Better Business Bureau means anything. I have seen many companies claiming to have A+ rating with the BBB and a few months later, they are being investigated by the FBI and the DA’s. So, is being featured on the Scotsman Guide mean anything or does it prove anything about NACSO? No!

Anybody can create a so called “organization” and proclaim to be the “one organization” consumers can go to. However, as I stated on my previous comment, the information I found shows that this so called “organization” (1757 E Baseline Rd #143, Gilbert, AZ 85233) is owned, operated, or managed by the same person who owns, operates or manages the same credit repair company you work for. Again I ask you, is that showing transparency with your messages?

Finally, allow me correct your erroneous statement. Trustworthy credit repair companies are not members of NACSO nor do they have a logo from such organization. There is no such thing as a trustworthy credit repair company because they simply don’t exist. Consumers looking to improve their credit history (credit repair or credit cleaning or however you want to call it…..) should contact a credit counselor member of “National Foundation of Credit Counseling.” They can teach consumers how to improve their credit and how to remove erroneous information from their credit history.
Brian C. Aber on October 12th, 2009 10:55 AM

Ney Montenegro,

Thank-you for conceding that I was correct, but your statement of “there is no such thing as needing a company to repair or clean a credit report” is obviously incorrect.

Of course there is a need, but I think you are implying that the consumers should not want to hire a credit repair company. There isn’t a need for an accountant, an attorney, a landscaper, a restaurant for you to eat your meals, but you need to do your taxes, you need to go to court, you need (should) to mow your lawn, and you definitely need to eat. Why go to a steak house when you can just BBQ at home? My point is that your point of view on the credit repair industry is trivial, misguided, and circumstantial.

I know you are a realtor, but can’t the client just sell the house on their own? Arguably, the credit repair process is much more difficult than showing a house.

The industries I previously mentioned are not attacked by you for charging (upfront) for something that the consumer can do themselves. When a realtor is less than honorable and rips off a client are you making fun of yourself and all realtors nationwide?

Of course a client can repair their own credit; we just do it better than they do because we do it every single day, understand the ever-changing laws, and have vast experience in going around the credit bureaus defense strategy of attrition and delay.

Your next statement;
“The reason why companies like yours exist is because there is so much information on the web that consumers can’t differentiate between good and bad information.”

I couldn’t agree more. But aren’t you assisting the negative with your misinformed and one-sided articles? Again I ask why you not referring to specific credit repair companies that you have found in your hard work and due diligence in preparation for writing this article?

Would you like to be held accountable when every deplorable realtor out there is exposed? Should I now make the statement, “There is no such thing as an honest realtor?” Of course I wouldn’t, because I am not even close to being an authority or an expert on realty, as you are not even close to understanding credit repair or its governing laws.

I don’t blame you directly for not understanding this industry as it is due to the high level of anti credit repair propaganda issued by the bureaus, but I do blame you for not doing your job properly and not slandering an industry and an organization brought about simply to help people and enforce federal law. As for you continuing to refer someone to a credit counselor for credit repair, please note that is dim thinking at best.

As for the transparency of the National Association of Credit Service Organizations, it is very transparent who helped spearhead this organization because the board members and their bios are on the site! The founders of NACSO go above and beyond to help clean up this industry and that should never be frowned upon. Who better to help self repair and self regulate than someone in our own industry.

I’m glad I had the opportunity to correct you on your erroneous statements (again) I do recommend you continue your research or even contact me directly at the National Association of Credit Services Organizations and I’ll answer every questions you have in regards to credit repair.

Brian C. Aber
866-976-22XX
Ney on October 13th, 2009 7:35 AM

Brian Aber,

Perhaps you need to read again the comments I have posted in response to other readers. I never conceded that you were correct. That was my response to another person who also left a comment and I stand by my statement that the consumer does not need a “credit repair company.”

There is a need for accountants because not everyone has a degree in accounting, there is a need for lawyers because not everyone has a Juris Doctor degree, and there is a need for restaurants because not everyone has the time to cook. My point of view about credit repair companies, which are a scam, is not misguided, trivial or circumstantial by any means; it is just the truth.

I am a Realtor and some experienced sellers don’t need my services but the majority cannot go on the internet and read up on how to sell a house and successfully sell it. There are so many details, legalities, and consequences that need to be considered when selling a home. If you really think that just showing a homes will get a home sold, well I think you may need to wake up and come out from wherever cave you have been living in.

You can say my point of view is bias but the reality of credit repair is that NOTHING that is correctly reported on a credit report can be erased. Credit Repair Company’s cash cow is the misinformation of the consumer making them think that anything or almost anything can be erased from the credit report therefore helping the credit repair process. Contrary to most profession you have listed, any consumer can go online or to the library and learn the truth about credit repair (I suggest you follow this link to see that the FTC has to say about credit repair).

The Federal Trade Commission (FTC), MyFico.com, and the consumer credit counseling companies also provide all this information FOR FREE!

If you think that the information I present on my blog is misinformed and one-sided, then so it must be the information provided by the FTC, MyFico.com, etc. because all the credit information comes from those sources. If you think my opinions and comments are also misinformed and one-sided, well then so be it. It does not matter what you or any other credit repair scam artist can say that will change the way I put VALIDATED AND CORRECT information available for the average consumer.

You are not the first one to make those silly comments about me. Most loan modification companies think the same of me when I tell consumers to go to NACA or another HUD approved agency or a broker who only charges for services rendered instead of charging regardless whether the loan is modified or not. In the same way you and the other credit repair companies argue that consumer credit counseling is not the place to go for credit counseling because you guys prefer to keep the consumer blind and coming to you like blind sheep. Me on the other hand, I prefer to open up the eyes of the consumer so they can see the various schemes ran by credit repair companies.

Additionally, federal law prohibits the collection of fees in advance for credit repair services. So my question to you is, do your company charge fees in advance or after the credit have been “repaired”?

As far as NACSO is concerned, I don’t see much credibility there regardless of how well you want to present them. The credibility is as non-existent as the credibility of the National Loan Modification Association of America (NLMAA) or the Home Loan Modification Association of Companies (HALOMAC) which are so called “organizations” put together to self-regulate the market of loan modifications.

NACSO is NOT a State or Federal organization regulating credit repair companies. This lack of involvement at the federal or state level in addition to self-regulation leaves the door wide open for fraud and guess who is the victim?…..The consumer of course!

So have I allowed you to correct my erroneous statements again?…Not even on my orthography have you done that, but if it helps you get through the day then I won’t burst your bubble.

I apologize if I am being too direct or to harsh on you and your industry but the reality is that I only tell it like it is. I don’t sell my integrity just to make a couple more dollars.
Brian C. Aber on October 13th, 2009 10:42 AM

Ney,

For all the reasons you mention on what you do for a living is the exact same reasons someone would hire a credit repair company. Make no mistake, no one involved is trying to paint the picture that the consumer cannot do this themselves. However if someone doesn’t have the time there is no reason to not hire a credit repair company. Also, no one involved is stating that accurate information can be removed. If they are, then that is surely the sign of a scam.

For example, one of NACSO’s requirements is that when describing the service the sales person is very clear that only inaccurate and obsolete information can be removed and that nothing that is accurate can be removed by anyone.

My point is everything in life can be done by one’s self and credit repair is no different. To say there is never a reason to sign up with a credit repair company is absurd in my opinion, especially considering that what you do for a living can definitely be done by the consumer. It’s for convenience, time management and experience.

Yes, there are definitely some bad apples in our industry; however this is the case in every industry. Thanks for allowing my responses to be posted here as I know you can choose what displays and what does not. I know I will probably never change your opinion but I simply ask that you keep an open mind and do know that there are people and companies out there that are honest and try to influence other companies to be honest as well. NACSO is a huge step in that direction and since 2007 has been consulting with thousands of companies nationwide on compliance, sales practices, etc. It might take a while but maybe one day the perception might change.
Ney on October 13th, 2009 4:26 PM

Brian,

Again, using a credit repair company when the information and services are already provided at no cost is absurd. I suggest you follow the links I provided to you so you can see it with your own eyes.

It is moronic to think anybody can sell a home just by doing a couple of open houses. There are contracts, disclosures, timelines, inspections, etc that do require knowledge of the industry. Yes, there were untrained, unscrupulous agents who got their license and were able to sell a home in just a couple days before but if you had any knowledge in this industry you would understand that the market allowed for such easy transactions.

If any consumer could sell a home as easily as you say, there would be no need for the state regulated departments of real estate in each state across the country. Is there such type of regulation for the credit repair companies?……uhhh NO!

Am I open minded about how credit can be repaired? Absolutely!

I just don’t care for companies or “professionals” who are not transparent and use the consumer’s lack of information as their cash cow. I see that in your blogs you provide useful information and I commend you for that; however, I stand by everything said on my previous comments.

Lastly, NACSO is not in any way shape or form a federal or state agency that regulates credit repair companies; therefore, as I stated before, this industry has its doors wide open for fraud just like loan modifications are.
Brian C. Aber on October 13th, 2009 5:21 PM

Ney,

“Is there such type of regulation for the credit repair companies?……uhhh NO!” Yes there is , as I have noted previously.

- Credit Repair Organizations Act (federal and statuary laws)

- Fair Credit Reporting Act

- Fair and Accurate Credit Transactions Act

- and other various laws designed to protect consumer rights.

NACSO is not a federal or state agency, nor have we ever made that impression; it is a group of ethical people doing their part to clean up its own. As for NACSO, it is an organization that’s sole purpose is to educate credit repair companies on compliance with the law.

And FSBOs are not moronic. Consumers do them all the time cause they don’t want to shell out the 3% in realtor commissions, which in my world come out to be approximately $30,000 for the homes in my area.

Contracts and disclosures are very simple. Inspections are simple and so are appraisals. What you do is very simple; however in the event someone wants to hire a professional they come to you for assistance.

Good Luck Ney,

Brian C. Aber
Ney on October 13th, 2009 10:17 PM

Brian,

Apparently you only have eyes for what is convenient to you and your arguments. You repeatedly fail to see, or refuse to see, what I actually expressed in my comments.

When I commented about the Department of Real Estate, I asked if there was such type of regulation for credit repair companies. I guess I should have made it more clear for you and asked exactly if there was such a regulatory agency at the federal or state level for the credit repair industry. I did not ask if there were laws that protected consumers against unfair credit practices or unlawful transactions by credit repair companies because I already know there are.

Also, I never said selling a home as a FSBO is moronic. I said, “It is moronic to think anybody can sell a home just by doing a couple of open houses.” So again I have to repeat myself and correct your statement. For your information, commissions are not set in stone as that would be price fixing which is illegal. A real estate transaction involves more than just contracts, disclosure, inspections, etc. If a real estate transaction was as simple as you mistakenly claim (I repeat myself once again) there would be no need for a Department of Real Estate in each state.

As you can see, you keep making incorrect statements and I’ve had to correct them once again. To tell you the truth, it is getting too redundant and you keep going in circles; so I will have to end your pointless arguments with this last comment.
Credit Repair After Bankruptcy Or Foreclosure: The Secrets They Don’t Want You To Know : San Jose-Santa Clara County Real Estate UNCENSORED on June 1st, 2010 8:37 PM

[...] radio, TV and the internet are filled with ads that promise to erase all negative information in your credit report in exchange, of course, for a fee. Companies, marketers, attorney affiliated individuals, [...]