Just in time for the holidays, Freddie Mac is releasing a new 65-second video warning consumers about credit repair scams. These are the ads you see promising to erase bad credit records and/or create new credit identities so people can get new credit cards or mortgage loans and start spending again. That's an appealing pitch, especially during the winter's gift-giving holidays.
The fact is, attorneys at the Federal Trade Commission say they've never seen a legitimate credit repair operation make such guaranteed promises.
As the video shows, people who fall prey to credit repair scams lose their upfront fees and don't improve their ability to borrow. Some scam victims even end up breaking the law and going to court by following the bad advice they got from these alleged credit repair entities.
The truth is, rebuilding credit takes time and patience, a good household budget, and paying your bills on time.
Share this video with someone you know who is shopping for a better credit reputation or send them this link for more information on credit repair fraud. You just may stop them from buying more trouble.
When you or someone you knows sees something suspicious, do something about it. Email Freddie Mac's Financial Fraud Investigation Unit at firstname.lastname@example.org or call Freddie Mac's Fraud Hotline 1-800-4FRAUD8 (1-800-437-2838).
Want to receive our weekly blog round up? Subscribe at the right – and each Friday we'll send you our latest blog posts.
Have a comment or question about this post? Email us to let us know what's on your mind.