One of the most devious credit repair schemes is referred to as file segregation. In this scam a credit repair company not only promises perfect credit, they promise an entirely new credit identity. Instead of using your social security number they argue that it is legal to use something called a PCN or CPN. These acronyms stand for a personal credit number.
If you want me to explain what a PCN or CPN number is I can do it relatively simply: It’s fraud! Imaging that you own a car dealership and a client comes in. They want financing from you and you ask them for the typical laundry list of requirements: name, address, date of birth, social security number, name of employer, etc. Well instead of giving you their social which is the primary means of tracking credit the give you some made up number. The credit report you pull indicates the buyer has perfect credit. Well, if you were to use their social security number you’d find they had terrible credit and as such you wouldn’t want to extend them credit.
Stay away from anyone offering file segregation! It could land you in a federal jail!
The New Jersey Attorney General recently indicted 11 different companies for mortgage and credit related fraud. One specific company under indictment was run by a two men, one a practicing attorney, that used a non-profit organization as a front in their efforts to drain their victims of cash. Allegedly the non-profit company charged fees up front for loan modifications, debt settlement and credit repair and failed to provide tangible results although they offered a 100% money back guarantee. The non-profit group set up a credit repair service that allegedly violated FTC rules and bilked over 40 people out of their savings.
Non profit organizations are designed to help people, not take their money. It’s doubly insulting that someone would set up a non profit for the purpose of victimizing people that are in the greatest need. WHile no one is guilty until proven so, it’s hard to read news like this and not wish for the alleged perpetrators to get very long jail sentences.
From Real Estate Rama New jersey:
In one of the two lawsuits, the defendants also are accused of violating federal law governing credit repair activity, and with founding a non-profit “financial advocacy council” solely to legitimize their fraudulent enterprises. The state has identified 42 homeowners victimized by the latest schemes.
By Mike Wayman
One of the reasons that so many homes are in foreclosure is that some real estate agents and loan officers, without any sense of morals or respect for the law, understand far too well how to maniuplate the credit and lending systems. Taks Diane Atari, real estate agent and fraudster. Mrs. Atari has [...]
June 30, 2009
By Mike Wayman
Credit repair scammers beware! The Federal Trade Commission announced today that they will be holding a press conference tomorrow announcing a widespread attack on companies that are taking advantage of consumers due to the economic downturn. The FTC is calling the new attack on fraud “Operation Short Change.” Operation Short [...]
June 29, 2009
By Mike Wayman
Disputing items on your credit report with Experian is actually rather simple. Moreover, it’s also free, that is, free if you have recently purchased a credit report from the Experian website in the last 90 days. There are three options consumers have to improve their credit on Experian’s website. The [...]
June 25, 2009
By Mike Wayman
Dispute letters are rarely affective in getting legitimate, negative tradelines removed from a consumer credit report. The funny thing about dispute letters is that consumers can send them to the bureaus themselves as a hard copy and as an electronic dispute through the bureaus as well.
It doesn’t surprise me, then, that [...]
June 24, 2009
By Mike Wayman
This week at Cornell University, the theft of a laptop computer resulted in the loss of 45,000 records of former and current employees as well as students. These records contained social security numbers as well as other personal records. While Cornell is not disclosing where the laptop was stolen from this [...]
June 23, 2009
By Mike Wayman
Identity theft is much easier than it used to be with the advent of web 2.0. Almost everyone nowadays has a myspace, facebook or twitter account. On each of these accounts people like to post as much as they can about themselves, their friends and their families.
The biggest problem with social [...]
June 22, 2009
By Mike Wayman,
One of the most common forms of credit repair practice around is for a credit repair company to send off dispute letters to each of the tradelines on your consumer credit report that appears negative. This is a very temporary solution. Moreover, it’s a solution that won’t necessarily work in the [...]
June 19, 2009
By Mike Wayman
When you begin work with a credit repair company you place a great deal of trust in their hands. These companies have access to your social security number, date of birth and sometimes your driver’s license number. This makes it rather easy to steal your identity.
Sometimes these scammers start out as [...]
Mike Wayman has over twenty-five years of experience in the financial services industry covering the full spectrum of financial products. His business skills are demonstrated by his ability to take a company from a concept to a reality as a successful entity.
In addition to being a successful business entrepreneur, Mike has distinguished himself for over fifteen years as a Police Officer and Deputy Sheriff. Along with many notable achievements, he has been awarded the Courage Under Fire Commendation Medal.
Mike is a dedicated family man and has been married for twenty-six years, is the father of two grown children and is an active member of the business community. Over the years, Mike has generously donated his personal time and effort to help his friends and neighbors find financial solutions to their problems. As Founder and Chief Executive Officer of Financial Hope for America, Mike hopes to provide a host of financial services that meets the growing needs of everyone across America that is struggling with the current financial crisis.
If you want to find a trustworthy credit repair company look no further. Certified Credit Repair is your trusted source for effective, efficient and ethical credit repair services.
