Credit repair companies may encourage violation of the law by suggesting that customers create a new credit identity with false information. Consumers who follow illegal advice, such as making false statements on a loan or credit application or misrepresenting their Social Security Number may be subject to prosecution. It is illegal to apply for an Employer Identification Number under the false pretenses. Many consumers do not realize that they can do a lot by themselves to rebuild a credit record. There is no charge to dispute mistakes or outdated information on credit records.
Consumers can ask for a dispute form and submit it a credit bureau with documentation.
Original documents should not be sent. The dispute form should include an explanation of the dispute and a request for a reinvestigation. If the thought of tackling credit independently is overwhelming, help is available. Universities, military bases, credit unions, and housing authorities often provide credit counseling services for little or no charge. Credit counseling services will try to arrange repayment plans with creditors and help set a realistic budget.