Seven "credit repair" companies have been charged with violating federal consumer protection and credit laws by promising to remove negative information from customers' credit reports, even credit information that is accurate and up to date.
According to a Federal Trade Commission (FTC) News Release announcing the filing of a complaint and restraining order, "the defendants charge consumers up to $2,000, including $300 in advance, promising to improve credit scores by removing information such as late payments, charge-offs, collections, inquiries, delinquencies, judgments, and accounts discharged in bankruptcy." Defendants named in the complaint include companies doing business as United Credit Adjustors, Bankruptcy Masters Corp., National Bankruptcy Services Corp., Federal Debt Solutions Ltd., and United Money Tree Inc.
According to the FTC, the defendants' promotion tactics included online ads promising a “100% Guarantee to raise your credit score!” and telephone calls that lured customers with statements like: “I can’t tell you much because I’ll be giving you my trade secrets, but I can definitely guarantee that we’ll take care of anything that’s derogatory on [your] credit report. It’s all legal.”
In reality, there is no way to remove accurate information from your credit report. And if your credit report does show actual errors, you have the right to have those errors corrected for free, under federal law. Otherwise, the only valid and proven "credit repair" tactics are conscious efforts toward debt management and systematic repayment that will improve your credit score over time.