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Multi Credit Repair Companies Informative - Nationwide Credit Services, Inc.; Clean Credit Report Services, Inc., Successful Credit Service Corp. and Advantage Credit Repair

Review by DebtorBasher on 2008-10-27
FTC and State Agencies Target 36 'Credit Repair' Operations...

The FTC announced a sweeping enforcement program last week that is targeting companies that claim they can remove negative marks from consumers' credit reports.

The Federal Trade Commission said late last week that it, along with government agencies in 22 states, launched a “crackdown” on dozens of companies that claimed they could remove negative information from consumers' credit reports.

Dubbed “Operation Clean Sweep” by the FTC, the crackdown netted an announced seven enforcement actions that seek to halt the defendants' allegedly unlawful business practices, prohibit further violations, and make them pay consumer redress and give up their ill-gotten gains.

In the cases announced last week, the FTC charged seven operations with violating the FTC Act and the Credit Repair Organizations Act (CROA) by making false and misleading statements, such as claiming they can substantially improve consumers' credit reports by removing accurate, negative information from their credit reports.

The FTC also said that the crackdown led to 26 state enforcement actions.

“Companies that promise they are able to scrub your credit reports of accurate, negative information for a fee are lying - plain and simple,” said Lydia Parnes, Director of the FTC's Bureau of Consumer Protection. “Under federal law, accurate, negative information can be reported for up to seven years, and some bankruptcies can be reported for up to 10 years.”

State law enforcement efforts involved the attorney general offices in Arkansas, California, Colorado, Florida, Illinois, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, and West Virginia; the justice departments of North Carolina, Oregon, and Wisconsin; Idaho's Department of Finance; Louisiana's Office of Financial Institutions; Vermont's Department of Banking, Insurance, Securities & Health Care Administration; and Wisconsin's Department of Financial Institutions.

The companies that were hit with FTC enforcement actions include Florida-based Nationwide Credit Services, Inc.; Clean Credit Report Services, Inc., also of Florida; California-based Successful Credit Service Corporation; and Illinois-based Advantage Credit Repair LLC.

insideARM
October 27, 2008
Comments:13 Replies - Latest reply on 2009-01-27
Posted by DebtorBasher on 2008-10-27:
I'd like to hear from some members who have used any of these types of services and how they worked for them.
Posted by Anonymous on 2008-10-27:
Sorry, but this doesn't apply to me.
Posted by Slimjim on 2008-10-27:
"""“Companies that promise they are able to scrub your credit reports of accurate, negative information for a fee are lying - plain and simple,” said Lydia Parnes,"""
Actually Lydia's statement isn't all that factual. While it isn't a gimme, very ethical, or anything that should be guaranteed, the fact is a credit repair company can achieve said results with their dispute letter tactics in some cases.
Posted by DebtorBasher on 2008-10-27:
I think some of them can do it Slim..but it's these specific companies that are in trouble for misleading the people.
Posted by Anonymous on 2008-10-27:
Any person with a bit of savviness can do this on their own like Slim, said.
I have and they can only do what you are able to do as well.
Any Joe Shmoe, that can at least "count payroll" could do it. Save your bucks.
Posted by jktshff1 on 2008-10-27:
Great post genral' VH. Your shooting for that 6th star huh!!
Posted by DebtorBasher on 2008-10-27:
Yup...just call me the "Six Shooter"...LOL!
Posted by Nohandle on 2008-10-27:
For some reason this reminds me of the radio ad I hear once or twice a week on the ride into work. "Credit Card Problems? It's not your fault. Call telephone number whatever and we can settle your debt for pennies on the dollar." I wonder how many fall for that one?

As far as Credit Repair Companies..yes they can do the legwork for someone who doesn't know how to correct inaccurate information. As far as the portion: claiming they can substantially improve consumers' credit reports by removing accurate, negative information from their credit reports. My question is how can they possibly claim to remove accurate information? Is there something here I am missing?

If your credit report is correct, although negative, how can a company remove accurate, negative information from your report? I think that's what this review is about. Companies claiming they can.
Posted by DebtorBasher on 2008-10-27:
Yes...that's what the issue is...promising to remove negative entries on a credit report that are not errors.
Posted by Slimjim on 2008-10-27:
Well yeah, of course they are not really errors. You don't have to be a rocket scientist to know the target consumer isn't the .001% of those who really do have a legit error on a credit report. The problem I think these companies must have had is being unable to clean credit as they claimed in their sales pitches. Credit repair agencies have been around for 20+ years and are still strong in numbers. The are very scrutinized now though and any pattern of complaints one starts having will get the FTC's attention. What bothers me still is this ladies quote. The promise is not a lie. That's what credit repair firms intend on doing, and many times, do pull it off.
BTW nohandle, debt settlement/negotiations is a completely different type of service and in today's economy, really is thriving. It can be a good option for certain debtors and I wouldn't say the term 'falling' for it would be necessarily accurate.
Posted by DebtorBasher on 2008-10-27:
I don't know if we are reading the same line differently or not. Slim, are you saying that these companies are ABLE to erase a negative comment off of a person's credit report that is legitamently placed on it because the customer did not pay a bill (or whatever the reason is)? I can well understand them being able to do all the footwork for a consumer, to erase a negative comment if it was placed on it in error.
Posted by Slimjim on 2008-10-27:
Sure. All credit repair companies do is write dispute letters claiming the negative entries are not the clients. These letters have to be written as if the client themselves wrote them, so they are template that way and either sent to the client to sign or done without signature. Once sent, it's a roll of the dice whether the creditor(s) can/do verify the debt or not. If they don't, vola, legit negative entry gone. It doesn't work all the time and sometimes if the account is still active, may pop back up. My beef is this Lydia's statement is just not correct. The companies do sincerely believe they can pull a neg and many times do.
Posted by Carl84 on 2009-01-27:
I'm about to hire a company to work on my wife's credit. They said on the website no charge at all until the bad stuff start to fall out of her credit report, somebody had deal with bcrcosulting.us before? We want to buy a house this summer and I have no idea how to deal with all this credit bureaus stuff. They kind of expensive but we are willing to pay if they really can help, I just need some referals I heard so many horror stories about this kind of companies. Thanks

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