Have you heard the claims? "Turned down because of bad credit? We can help!" "Get a bankcard in 30 days." "Repair bad credit." Credit repair companies, known as "credit clinics", regularly make false claims like these that many consumers take at face value.
		esponding to credit clinic claims, Jodie Bernstein, director of the Federal Trade Commission's (FTC) Bureau of Consumer Protection, said in a press conference on April 1, "These con artists charge hundreds of dollars and claim they can 'fix' credit reports so that accurate, timely information about the consumer's credit history will no longer appear. These claims are false." The bottom line is there is no way to legally remove bad credit information that's accurate from a consumer's credit report. While credit clinics may claim to remove negative information from a consumer's credit report or promise to get a consumer a bankcard regardless of their previous credit history, only time can improve bad credit. Accurate information that shows negative payment habits will remain on a credit report for up to 10 years. This is mandated by Federal law. Credit clinics typically saturate consumer credit agencies with demands to reinvestigate negative as well as positive information in a consumer's credit file in an attempt to overwhelm the credit agencies' resources and pressure them into removing negative credit information. This practice often backfires and negatively affects all credit active consumers by tying up credit agencies' resources dedicated to dealing with consumer disputes.
		he FTC is cracking down on credit clinics and has an initiative underway "to shut down fraudulent credit repair schemes." A federal law regulating credit repair and passed in September requires companies claiming credit repair capabilities to provide the consumer with a written description of consumer rights and a written contract, which the consumer can cancel within 3 days. In addition, the law prohibits credit repair companies from charging for services before they are completed, a common ploy in the past. The FTC is also targeting World Wide Web sites that fraudulently claim that they can repair consumer's credit reports by removing negative information that is accurate. Two brochures are available to consumers from the FTC that can help them learn more about credit repair, "Getting Back in the Black", and credit counseling, "Knee Deep in Debt." For more information, contact the FTC by phone at (202) 326-2222, on the Internet at www.ftc.gov, or request one of its brochures from the Federal Trade Commission Public Reference Branch, Washington, D.C. 20580.
		onsumers can do everything a credit clinic does-at least the legal activities-for free or for a nominal cost. If a consumer finds inaccurate information on his or her credit report, the Fair Credit Reporting Act (FCRA) gives consumers the right to dispute the information free of charge. When you receive your personal credit report or your 3-Agency Credit Report from ConsumerInfo.Com®, you will also receive information about how to dispute inaccurate information. You can also read our online guidelines for disputing inaccuracies. If you have any questions about your credit report or the dispute process, call our Customer Service Center toll-free at 1 (888) 888-8553.
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