LANSING- Today the Office of Financial and Insurance Regulation (OFIR) warned Michigancitizens about companies promising, for a fee, that they can clean up and fix credit reports. OFIR told consumers that these companies do nothing to improve a credit report and only cost citizens money.  After consumers pay these companies hundreds or thousands of dollars in fees, most of them simply vanish.

No one can legally remove accurate and timely negative information from a credit report and according to the Federal Trade Commission (FTC), the government agency "has never seen a legitimate credit repair company."

"Consumers should avoid companies pitching quick and easy credit repair," said OFIR Commissioner Ken Ross. "Removing blemishes from a credit report requires the passage of time, careful budgeting and establishing a successful track record of on-time payments."

According to the FTC, the tell-tale signs of a scam include companies that:

● want you to pay for credit repair services before they provide any    services.

● do not tell you your legal rights and what you can do for yourself for    free.

● recommend that you not contact a credit reporting company directly.

● suggest that you try to invent a "new" credit identity - and then, a    new credit report - by applying for an Employer Identification Number    to use instead of your Social Security number.

● advise you to dispute all information in your credit report or take any    action that seems illegal, like creating a new credit identity. If you    follow illegal advice and commit fraud, you may be subject to    prosecution. 

A free annual credit report is available at annualcreditreport.com.

If consumers are not disciplined enough to create a workable budget they should consider contacting a credit counseling organization.  For a list of the U.S. Department of Justice's approved credit counselors, visit: http://www.usdoj.gov/ust/eo/bapcpa/ccde/ccapproved.htm

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