Law enforcement agencies nationwide say they’re tracking down companies that claim they can help consumers get new credit histories with fake Social Security numbers.

Tuesday, May 15, 2001

Law enforcement agencies nationwide say they’re tracking down companies that claim they can help consumers get new credit histories with fake Social Security numbers. And the Federal Trade Commission has filed dozens of complaints against various companies that collected fees from victims by promising to repair their bad credit records by providing fake Social Security cards with new numbers.

Anyone who applies for credit with a false identification number is breaking federal law, says the Federal Trade Commission’s Bureau of Consumer Protection.

Credit repair con games are spreading like wildfire on the Internet and in unsolicited junk e-mail, targeting consumers who are anxious to repair their credit profiles.

The crooked companies also sell "advice" on how to develop new credit ratings by doing such things as getting new driver’s licenses using the new I.D. number – another violation of the law by the victim.

There are several ample federal laws covering this practice, including the Credit Repair Organizations Act and other laws. Cases have also been made under state law in several states.

The credit repair scam is unusually cruel because, unlike some other scams, it puts the victim in an illegal position that is absolutely transparent. The victim thus becomes the primary lawbreaker.

Trying to achieve a good credit rating with fake credentials gets people into – not out of – a bind that’s much worse than having a bad credit record.