Federal regulators have filed complaints against seven companies that allegedly promised to wipe credit reports clean of damaging information _ even if it was accurate.
“Companies that promise they are able to scrub your credit reports of accurate, negative information for a fee are lying, plain and simple,” Lydia Parnes, director of the FTC’s Bureau of Consumer Protection, said in a statement on Thursday.
Under federal law, she said accurate information can be reported for up to seven years. Some bankruptcies can be reported for up to 10 years.
The FTC, along with agencies from 22 states, is asking that a judge stop the companies from operating, prohibit future unlawful practices and force the companies to repay customers, said Frank Dorman, an FTC spokesman.
Tags: FTC, states crack down on credit repair companies