| **- August 1996 -**

Produced in cooperation with Associated        Credit Bureaus 

You see the advertisements in newspapers, on TV, and        on the Internet. You hear them on the radio. You get        fliers in the mail. You may even get calls from        telemarketers offering credit repair services. They all        make the same claims: 
- "Credit problems? No problem!" 
- "We can erase your bad credit -- 100%                guaranteed." 
- "Create a new credit identity --                legally." 
- "We can remove bankruptcies, judgments,                liens, and bad loans from your credit file                forever!" 

Do yourself a favor and save some money, too. Dont        believe these statements. Only time, a conscious effort,        and a personal debt repayment plan will improve your        credit report. 

This brochure explains how you can improve your credit        worthiness and lists legitimate resources for low or        no-cost help. 

**The        Scam**

Everyday, companies nationwide appeal to consumers        with poor credit histories. They promise, for a fee, to        clean up your credit report so you can get a car loan, a        home mortgage, insurance, or even a job. The truth is,        they cant deliver. After you pay them hundreds or        thousands of dollars in up-front fees, these companies do        nothing to improve your credit report; many simply vanish        with your money. 

**The        Warning Signs**

If you decide to respond to a credit repair offer,        beware of companies that: 
- Want you to pay for credit repair services before                any services are provided; 
- Do not tell you your legal rights and what you                can do -- yourself -- for free; 
- Recommend that you not contact a credit bureau                directly; or 
- Advise you to dispute all information in your                credit report or take any action that seems                illegal, such as creating a new credit identity.                If you follow illegal advice and commit fraud,                you may be subject to prosecution.

You could be charged and prosecuted for mail or wire        fraud if you use the mail or telephone to apply for        credit and provide false information. Its a federal crime        to make false statements on a loan or credit application,        to misrepresent your Social Security Number, and to        obtain an Employer Identification Number from the        Internal Revenue Service under false pretenses. 

Thanks to the new Telemarketing Sales Rule, it's also        a crime for telemarketers who offer credit repair        services to require you to pay until six months after        they've delivered the services. 

**The        Truth**

No one can legally remove accurate and timely negative        information from a credit report. But the law does allow        you to request a reinvestigation of information in your        file that you dispute as inaccurate or incomplete. There        is no charge for this. Everything a credit repair clinic        can do for you legally, you can do for yourself at little        or no cost. According to the Fair Credit Reporting Act: 
- You are entitled to a free copy of your credit                report if youve been denied credit within the                last 30 days. If your application for credit,                insurance, or employment is denied because of                information supplied by a credit bureau, the                company you applied to must provide you with that                credit bureaus name and address. 
- You can dispute mistakes or outdated items for                free. Ask the credit reporting agency for a                dispute form or submit your dispute in writing,                along with any supporting documentation. 

Clearly identify each item in your report that you        dispute, explain why you dispute the information, and        request a reinvestigation. If the new investigation        reveals an error, you may ask that a corrected version of        the report be sent to anyone who received your report        within the past six months. Job applicants can have        corrected reports sent to anyone who received a report        for employment purposes during the past two years. 

If the reinvestigation does not resolve your dispute,        have the credit bureau include your version of the        dispute (up to 100 words) in your file and in future        reports. Remember, there is no charge for a        reinvestigation. 

**Reporting        Negative Information**

Accurate negative information generally can be        reported for seven years, but there are exceptions: 
- Bankruptcy information can be reported for 10                years; 
- Information reported because of an application                for a job with a salary of more than $20,000 has                no time limitation; 
- Information reported because of an application                for more than $50,000 worth of credit or life                insurance has no time limitation; 
- Information concerning a lawsuit or a judgment                against you can be reported for seven years or                until the statute of limitations runs out,                whichever is longer; and 
- Default information concerning U.S. Government                insured or guaranteed student loans can be                reported for seven years after certain guarantor                actions. 

**Have        You Been Victimized?**

Many states have laws strictly regulating credit        repair companies. States may be helpful if youve lost        money to credit repair scams. 

If youve had a problem with a credit repair company,        dont be embarrassed to report the company. Contact your        local consumer affairs office or your state attorney        general (AG). Many AGs have toll-free consumer hotlines.        Check with your local directory assistance. 

You also may wish to contact the FTC. Although the        Commission cannot resolve individual credit problems for        consumers, it can act against a company if it sees a        pattern of possible law violations. If you believe a        company has engaged in credit fraud, send your complaints        to: Correspondence Branch, Federal Trade Commission,        Washington, DC 20580. 

The National Fraud Information Center (NFIC) also        accepts consumer complaints. You can reach NFIC at        1-800-876-7060, 

9 a.m. - 5:30 p.m. EST, Monday - Friday, or at        http://www.fraud.org on the Internet. NFIC is a private,        nonprofit organization that operates a consumer        assistance phone line to provide services and help in        filing complaints. NFIC also forwards appropriate        complaints to the FTC for entry on its telemarketing        fraud database. 

**Need        Help? Don't Despair**

Just because you have a poor credit report doesnt mean        you wont be able to get credit. Creditors set their own        credit-granting standards and not all of them look at        your credit history the same way. Some may look only at        more recent years to evaluate you for credit, and they        may grant credit if your bill-paying history has        improved. It may be worthwhile to contact creditors        informally to discuss their credit standards. 

If you cant resolve your credit problems yourself or        you need additional help, you may want to contact a        credit counseling service. There are non-profit        organizations in every state that counsel consumers in        debt. Counselors try to arrange repayment plans that are        acceptable to you and your creditors. They also can help        you set up a realistic budget. These counseling services        are offered at little or no cost to consumers. You can        find the office nearest you by checking the white pages        of your telephone directory. 

In addition, nonprofit counseling programs sometimes        are operated by universities, military bases, credit        unions, and housing authorities. Theyre also likely to        charge little or nothing for their services. Or, you can        check with your local bank or consumer protection office        to see if it has a list of reputable, low-cost financial        counseling services. 

**Do-It-Yourself        Check-Up For Free**

Even if you dont have a poor credit history, its a        good idea to conduct your own credit check-up, especially        if youre planning a major purchase, such as a home or        car. Checking in advance on the accuracy of the        information in your credit report could speed the        credit-granting process. 

Credit bureaus usually are listed in the yellow pages        of your telephone book under "credit reporting        agencies." Three large national credit bureaus        supply most credit reports: TRW, Equifax, and Trans        Union. You may want to contact each of them for a copy of        you report. 

TRW Information Services         TRW Complimentary Report         P.O. Box 8030         Layton, UT 84041-8030         (800) 682-7654 **Free**

Equifax Credit Information Services, Inc.         P.O. Box 740241         Atlanta, GA 30374-0241         (800) 685-1111 **$8 Fee**

Trans Union Corporation         Trans Union Consumer Relations         760 West Sproul Road, P.O. Box 390         Springfield, PA 19064-0390 **$8 Fee**

**For        More Information**

The FTC enforces a number of federal laws involving        consumer credit for which free publications are        available. If you would like copies of the publications        listed below, write or call: Public Reference, Federal        Trade Commission, Washington, DC 20580; (202) 326-2222.        TDD: (202) 326-2502. 
- Best Sellers  (a complete list of the                FTCs consumer and business publications) 
- Building a Better Credit Record  (produced                in cooperation with Associated Credit Bureaus) 
- Credit and Divorce 
- Credit Billing Errors 
- How to Dispute Credit Report Errors 
- Scoring for Credit 
- Solving Credit Problems 
- Straight Talk About Telemarketing 
- Women and Credit Histories 

You also can access FTC publications at        http://www.ftc.gov on the Internet. 

3/96; 8/92; 9/91; 5/91 |
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