It is important to be aware of what is in your credit report and make sure the information is accurate. This is your right under the Fair Credit Reporting Act (FCRA). It is another thing to try to remove negative information that you know is correct – that is illegal.
The Federal Trade Commission (FTC) charged the operators of a credit repair company in Texas, RMCN Credit Services, of violating the Credit Repair Organizations Act. The FTC complaint, which can be seen here, alleges the company made false statements to the credit reporting agencies and charged retainer fees of $2,000 to the consumers for services. RMCN advertised a six-month program to improve consumer’s credit reports and, according to the FTC, did not show the consumers the letters sent to the credit reporting agencies disputing all the negative information on the consumers’ credit reports. Even after the investigation was completed by the credit reporting agencies and information was verified with detailed payment data, RMCN continued to send the dispute letters. read more »