July 20, 2009
By Mike Wayman
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!
{ 2 comments… read them below or add one }
Good stuff…keep it coming
Thanks for posting about this, I would like to read more about this topic.