Is Buying Tradelines Illegal? The Mortgage Fraud Question Fannie Mae and Federal Prosecutors Are Asking in 2025

Writer: Joeziel Vazquez,

CEO & Board Certified Credit Consultant (BCCC, CCSC, CCRS)

Experience: 17 Years in Credit Repair Industry

Published: December 13th, 2025

Reading Time: 22 Minutes

The Question Everyone's Asking But No One Wants to Answer

Here's what happened in May 2025 that changed everything: Fannie Mae announced a partnership with Palantir Technologies to launch an AI-powered Crime Detection Unit specifically designed to root out mortgage fraud. FHFA Director William J. Pulte stood at Fannie Mae's Washington D.C. headquarters and made something very clear: "I think we are going to find a lot of occupancy fraud. By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable."

But occupancy fraud isn't the only thing this AI system will catch. Credit misrepresentation—including artificially inflated credit scores from purchased tradelines—is now under federal microscopic examination using technology that can analyze patterns across $4.3 trillion in mortgage assets.

I've been in the credit repair industry for 17 years. I founded Credlocity in 2008 after being scammed by Lexington Law for $1,847, and since then we've served over 79,000 clients nationwide. I've also spent the last six years conducting investigative journalism into credit repair fraud, documenting over $12 billion in consumer damages across seven major fraud cases. And I need to tell you something that the tradeline industry doesn't want you to know: the legal landscape around purchased tradelines has fundamentally shifted, and what was once a murky gray area is rapidly becoming a federal prosecution priority.

The question isn't just "are tradelines illegal?" anymore. The question is: "When does buying a tradeline become federal mortgage fraud?" And with Fannie Mae's new AI detection capabilities, coupled with the Consumer Financial Protection Bureau declaring mortgage fraud its highest enforcement priority in 2025, you need to understand exactly where the line is—because crossing it could cost you 30 years in federal prison.

Let me be direct about my qualifications to discuss this. I'm not just a credit expert with Board Certified credentials (BCCC, CCSC, CCRS, and FCRA Certified Professional). I'm someone who has been to federal prison. Not for credit fraud—for addiction-related issues that I battled for years. I've been in recovery since March 5, 2015. That's over 3,900 days clean as I write this.

I know what federal prison looks like from the inside. I know what those doors sound like when they close behind you. I know what it's like to watch your family leave after visiting hours. And that lived experience is exactly why you should listen when I tell you: no credit score boost is worth federal prison time.

Understanding the Legal Framework: Why Authorized User Accounts Exist

Before we can answer whether buying tradelines is illegal, we need to understand why authorized user accounts are legal in the first place. This history matters because it's the foundation of the entire debate.

The Equal Credit Opportunity Act of 1974 was passed to combat systematic credit discrimination, particularly against married women. In the early 1970s, married women faced devastating barriers in the credit system. Banks routinely denied women credit applications outright, required male co-signers, and issued credit cards only in husbands' names. Even when women were authorized users on family credit cards—meaning they were legally permitted to use the accounts—lenders frequently ignored this credit history when evaluating loan applications.

This created a vicious cycle. Women couldn't build independent credit history because lenders wouldn't report their authorized user accounts. Without credit history, they couldn't qualify for loans. Without qualifying for loans, they couldn't build credit history. The discrimination was structural and devastating.

Congress acted through the Equal Credit Opportunity Act, and the Federal Reserve Board implemented it through Regulation B. The law established two critical requirements for creditors. First, when providing information to credit bureaus, creditors must furnish information for authorized users as well as primary account holders. Second, when using credit history to assess creditworthiness, creditors must consider all authorized user accounts when available, regardless of whether the authorized user is a spouse.

Here's where the tradeline industry's narrative diverges from what the law actually says. Regulation B, which implements the Equal Credit Opportunity Act, contains specific provisions about spousal authorized user accounts only. According to Section 202.10(a) of Regulation B, a creditor that furnishes credit information to a consumer reporting agency must designate "any new account to reflect the participation of both spouses if the applicant's spouse is permitted to use or is contractually liable on the account."

Nowhere in Regulation B or the ECOA does it state that credit bureaus or creditors must treat non-spousal authorized users equally. The law doesn't mention friends, family members beyond spouses, or strangers. The requirement applies exclusively to spouses.

The tradeline industry has built its entire business model on a deliberate misrepresentation of this legal framework. They claim that because credit bureaus technically cannot distinguish between spousal and non-spousal authorized users in their data systems, the law requires equal treatment of all authorized users. This is false.

What actually happened is that credit bureaus chose—as a business practice, not a legal requirement—to report all authorized user relationships the same way because their systems weren't designed to capture the nuance of spousal versus non-spousal relationships. This was a technical limitation and business decision, not a legal mandate.

The law protects spousal authorized user accounts to prevent discrimination against married women who were systematically denied credit in the 1970s. It does not protect, require, or even mention commercial transactions where strangers pay to be added as authorized users for credit score manipulation. The Federal Reserve Board acknowledged this issue in their 2010 study "Credit Where None Is Due? Authorized User Account Status and 'Piggybacking Credit.'" The study found that over one-third of Americans with credit files have been authorized users at some point, and that authorized user accounts generally have superior characteristics compared to non-authorized user accounts.

But the Federal Reserve study also revealed something critical: authorized user accounts can materially improve credit scores, particularly for individuals with thin or short credit histories. For people with fewer than two tradelines, adding a high-quality authorized user account increased credit scores by an average of 19.4 points. For those with credit histories shorter than 24 months, the increase averaged 22.4 points. Perhaps most importantly, the study found that 27.2% of subprime borrowers could be moved into near-prime credit categories simply by being added to a single high-quality authorized user account.

These aren't small numbers. These are score increases that can mean the difference between loan approval and denial. Between a 7% mortgage rate and a 4% mortgage rate. Between qualifying for a $300,000 home loan and qualifying for nothing.

That's when the commercial tradeline industry was born. If federal law requires equal treatment of all authorized users, and if adding authorized users creates measurable credit score improvements, why not create a marketplace where people can buy and sell this privilege?

The Tradeline Industry's False Legal Claims About Regulation B

This is where I need to expose one of the biggest lies the tradeline industry tells consumers. They claim that Regulation B requires credit bureaus and lenders to treat all authorized users equally regardless of relationship. This is categorically false, and I can prove it by quoting the actual regulation.

According to the Federal Reserve Board's official Regulation B guidance, Section 202.10(a) titled "Designation of Accounts" states:

"A creditor that furnishes credit information to a consumer reporting agency must designate any new account to reflect the participation of both spouses if the applicant's spouse is permitted to use or is contractually liable on the account."

Notice what the regulation says: spouses. Not friends. Not family members. Not business partners. And certainly not strangers you pay $1,500 to add you to their credit card.

The regulation continues: "If a creditor furnishes credit information to a consumer reporting agency, the creditor must furnish the information in the name of the spouse about whom the information was requested."

Again, the word is "spouse." The entire legal framework of Regulation B's authorized user provisions centers on preventing discrimination against married individuals—particularly married women who were systematically denied credit in the 1970s.

Section 202.5(c) of Regulation B, which addresses "Information about a Spouse or Former Spouse," allows a bank to request such information only under specific circumstances:

"A bank may not request information about an applicant's spouse or former spouse except under the following circumstances: The non-applicant spouse will be a user of or joint obligor on the account... The non-applicant spouse will be contractually liable on the account... The applicant is relying on the spouse's income, at least in part, as a source of repayment."

These provisions exist to protect spouses, not to create a commercial marketplace for credit score manipulation.

Here's what Regulation B does NOT say:

• It does not require credit bureaus to treat all authorized users equally

• It does not prohibit creditors from distinguishing between spousal and non-spousal authorized users

• It does not protect commercial tradeline transactions

• It does not mention non-spousal relationships at all

• It does not prevent credit scoring models from discounting or excluding non-spousal authorized user accounts

The tradeline industry's claim that "the law requires equal treatment of all authorized users" is a complete fabrication. What actually happened is that credit bureaus made a business decision—not compelled by law—to report all authorized user accounts the same way because their data systems weren't designed to distinguish spousal from non-spousal relationships.

That business decision created an opportunity for exploitation, which the tradeline industry seized. But a credit bureau's data limitation is not the same as a legal requirement. And credit scoring companies like FICO and VantageScore are under no legal obligation to treat purchased tradelines the same as spousal authorized user accounts.

In fact, both FICO and VantageScore have already modified their scoring models to reduce the weight of or completely exclude non-spousal authorized user accounts. VantageScore excludes them entirely. FICO has reduced their impact. They can do this legally because there is no law requiring equal treatment of all authorized users.

When tradeline companies tell you "it's legal because of Regulation B," they're lying to you. Regulation B protects spouses. It doesn't protect commercial fraud schemes.

Now we arrive at the critical intersection between legal authorized user accounts and illegal mortgage fraud. The Federal Housing Finance Agency—the regulatory body overseeing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks—has established clear definitions of what constitutes mortgage fraud, and these definitions are what federal prosecutors use when deciding whether to charge someone with a crime.

According to the FHFA, "Mortgage fraud is characterized by a material misstatement, misrepresentation, or omission in relation to a mortgage loan, which is then relied upon by a lender." This definition is deceptively simple but has enormous implications for anyone considering purchasing tradelines.

The FHFA categorizes mortgage fraud into two primary forms: Fraud for Profit and Fraud for Housing. Fraud for Profit usually involves industry insiders like appraisers, brokers, and loan originators who abuse the mortgage lending process to gain cash or home equity. Fraud for Housing consists of illegal actions by borrowers who want to acquire or maintain homeownership.

Here's where purchased tradelines become extremely dangerous. The FHFA specifically identifies several fraud categories that directly apply to tradeline purchases when used for mortgage qualification.

Under "Application Fraud," the FHFA states that "a borrower may intentionally supply false information about income or identity in support of a mortgage application. These instances of fraud may be related to fraud for housing by a borrower or fraud for profit schemes." While this doesn't explicitly mention credit scores, federal prosecutors have successfully argued that presenting an artificially inflated credit score—knowing it was purchased specifically to qualify for a loan—constitutes false information about creditworthiness.

The FHFA's definition of "Credit/Liabilities" fraud is even more direct: "Mortgage rates and the decision to extend a loan to a borrower are heavily dependent on the applicant's credit and current debt liabilities. Fraud may include borrower misrepresentation of credit score and/or amount of debt to qualify for a loan or for favorable loan terms."

Read that again carefully. "Borrower misrepresentation of credit score... to qualify for a loan or for favorable loan terms." This is exactly what happens when someone purchases tradelines, sees their score jump 50-150 points, and then applies for a mortgage they wouldn't have qualified for otherwise.

The FHFA also notes that "civil and criminal penalties for mortgage fraud at the state and federal level can be severe and may include convictions and prison time, restitution payments, state fines, and/or probation." This isn't a hypothetical warning. These are the actual consequences people face when federal prosecutors decide to make an example of mortgage fraud cases.

When Tradeline Purchases Cross Into Federal Bank Fraud Territory

Let me walk you through the exact scenario that transforms a legal authorized user account into federal bank fraud under 18 U.S.C. § 1344. This is the federal statute that makes it a crime to knowingly execute a scheme to defraud a financial institution or to obtain money, property, or other assets through false pretenses. The maximum penalties are 30 years in federal prison and up to $1 million in fines.

Here's the criminal sequence that federal prosecutors look for. Step one: You have a 550 credit score. Based on this score, you cannot qualify for a mortgage at reasonable terms, or perhaps you cannot qualify at all. This is your true creditworthiness based on your actual payment history and financial behavior.

Step two: You pay $1,500 to $3,000 to a tradeline company. They add you as an authorized user to two or three high-limit credit cards with perfect payment histories. You never meet the primary cardholders. You never get access to the cards. You cannot make purchases. The sole purpose of this transaction is to artificially inflate your credit score.

Step three: Within 30-60 days, your credit score jumps to 680 or 700. This increase has nothing to do with your actual creditworthiness, your payment behavior, or your financial management. It's purely the result of a commercial transaction designed to manipulate credit scoring algorithms.

Step four: You apply for a $300,000 mortgage. You submit your credit report showing the 680 score. You don't disclose to the lender that your score is artificially inflated, that you paid strangers for these accounts, that you have zero access to these credit cards, or that you'll be removed from these accounts in 60-90 days when your contract with the tradeline company expires.

Step five: The bank approves your loan based on creditworthiness you don't actually have. They're making a lending decision based on false information. You obtained a $300,000 loan through misrepresentation of your true financial situation.

That is federal bank fraud. You knowingly misrepresented material information—your true creditworthiness—to obtain a loan you wouldn't have qualified for otherwise.

Now, tradeline companies will argue: "But the lender can see that you're an authorized user on the credit report. There's no deception because the information is right there." This argument is legally nonsensical, and here's why.

The fraud isn't about hiding that you're an authorized user. The fraud is about misrepresenting your actual creditworthiness to obtain a loan you wouldn't otherwise qualify for. You're presenting yourself as someone with a 680 credit score and strong credit history when you actually have a 550 score that was temporarily boosted through a commercial transaction specifically designed to deceive lenders about your true financial reliability.

Federal prosecutors don't need to prove that you hid information. They need to prove that you knowingly used false or misleading information to obtain a loan. And when you pay money specifically to inflate your credit score for the purpose of qualifying for a mortgage, that intent is crystal clear.

The legal concept here is "fraud by omission." Even if every piece of information on your credit report is technically accurate, your failure to disclose that you purchased these accounts specifically to inflate your score for mortgage qualification constitutes fraud. You have a duty to provide material information that affects the lender's decision. When you knowingly withhold information that would cause the lender to deny your application or offer different terms, you've committed fraud.

The FTC's Enforcement Pattern: Three Major Tradeline Company Shutdowns

The Federal Trade Commission has been systematically shutting down tradeline companies, and examining their enforcement pattern reveals exactly how federal authorities view this industry. These aren't random cases. They represent a coordinated effort to eliminate what the FTC views as inherently fraudulent business models.

In 2020, the FTC sued BoostMyScore and its owner William O. Airy. The company charged consumers between $325 and $4,000 to be added as authorized users on strangers' credit cards. Their marketing materials promised "the amazing benefit of having another person's credit copied and pasted onto your credit report" with guaranteed score increases of up to 120 points in under two weeks.

The FTC's complaint charged violations of the FTC Act, the Credit Repair Organizations Act, and the Telemarketing Sales Rule. According to the complaint, BoostMyScore coached people on how to conceal what was happening from lenders. They didn't just facilitate authorized user accounts—they taught customers how to commit fraud.

The result? Business shut down permanently. Airy barred from the credit repair industry forever. And every customer who purchased tradelines was left with those accounts on their credit reports, creating a permanent record that could be discovered during any future loan application or federal investigation.

But here's where it gets interesting. In 2022, the FTC shut down The Credit Game and Wholesale Tradelines—a company that had purchased BoostMyScore's customer database after BoostMyScore was already shut down by the FTC. Think about that for a moment. A company saw another company get shut down for illegal tradeline sales, then bought their customer list and continued operating the exact same scheme.

The Credit Game brought in over $15 million selling tradeline schemes. They filed bogus identity theft reports with the FTC, provided false information to credit bureaus, and encouraged customers to dispute accurate information. The FTC charged them with violations of the FTC Act, CROA, the Business Opportunity Rule, the Telemarketing Sales Rule, and the Covid Consumer Protection Act because they specifically preyed on people during the pandemic.

In 2019, the FTC shut down Top Tradelines and Deletion Experts, which charged $2,000 to $3,000 for credit repair services and tradelines under multiple business names. The FTC's legal theory in this case is particularly important for understanding the current legal landscape. They argued that if an authorized user doesn't have actual access to the card—which purchased tradelines don't—then untrue information is being reported to credit bureaus, which violates CROA.

This legal theory fundamentally challenges the entire tradeline industry. If being listed as an "authorized user" when you have no authorization to actually use the account constitutes false reporting, then every commercial tradeline transaction potentially violates federal law, even before you use it to apply for a mortgage.

The pattern across all three cases reveals the FTC's enforcement philosophy. They're not just going after companies that make false promises or charge illegal upfront fees. They're targeting the business model itself as inherently fraudulent. When you create a commercial marketplace for people to purchase credit history they didn't earn, you're facilitating fraud, and the FTC will shut you down.

The Credit Repair Organizations Act: Why Most Tradeline Companies Operate Illegally

Even when tradeline sales themselves aren't explicitly illegal, companies selling them must comply with the Credit Repair Organizations Act of 1996. The problem is that most tradeline companies violate CROA in multiple ways, making their operations illegal regardless of whether authorized user accounts are legal.

CROA establishes four critical requirements that tradeline companies routinely violate. First, no upfront fees. Companies cannot charge before services are fully rendered. Any tradeline company requiring full payment weeks before tradelines post to your credit report violates CROA. Yet this is standard practice in the industry. They demand payment upfront, promise delivery in 30-45 days, and leave you with no recourse if the tradelines never appear or get removed immediately.

Second, no false claims. Promises like "guaranteed 100-point increase" or specific score improvements are explicitly prohibited under CROA. Yet if you look at tradeline company marketing materials, they're filled with specific score increase promises. They show before-and-after screenshots. They guarantee results. Every one of those guarantees is a CROA violation.

Third, required disclosures. Companies must provide written contracts detailing services, timeframes, cancellation rights, and consumer rights to dispute information independently. Most tradeline companies provide minimal documentation, if any. They operate through payment processors and third-party platforms that obscure the actual business entity you're dealing with.

Fourth, you cannot waive consumer rights. Companies cannot require you to waive your right to sue or your other legal protections. Yet tradeline company agreements are filled with forced arbitration clauses, anti-disparagement provisions, and anti-chargeback terms that waive your rights.

These aren't technical violations. These are substantive protections that Congress created specifically because credit repair fraud was rampant. When tradeline companies violate CROA, they're not just breaking administrative rules—they're engaging in the exact predatory practices that CROA was designed to prevent.

Here's what makes this particularly dangerous for consumers. When you do business with a company that's violating CROA, you have no legal protections. If they take your money and deliver nothing, you can't sue because you agreed to forced arbitration. If they deliver tradelines that get removed immediately, you can't get a refund because you waived your chargeback rights. If the tradelines cause problems when you apply for a mortgage, you can't warn others because you signed anti-disparagement agreements.

You're doing business with illegal operations that have structured their agreements specifically to prevent you from seeking legal remedies when things go wrong. And things will go wrong.

At Credlocity, we've operated under strict CROA compliance since our founding in 2008. We don't charge upfront fees—our 30-day free trial means you can evaluate our services before paying anything. We don't make specific score increase guarantees because CROA prohibits them and because every credit situation is unique. We provide detailed written contracts with clear cancellation rights. And we never require you to waive your legal protections.

This isn't just good ethics. It's the law. Any credit repair company—including tradeline sellers—who doesn't operate this way is breaking federal law, and that should tell you everything you need to know about their legitimacy.

Fannie Mae's AI-Powered Mortgage Fraud Detection: The Game Just Changed

The announcement in May 2025 of Fannie Mae's partnership with Palantir Technologies represents a fundamental shift in mortgage fraud detection capabilities. This isn't incremental improvement in fraud detection. This is quantum leap technology that can analyze patterns across millions of datasets in ways that were previously impossible.

Priscilla Almodovar, Fannie Mae's President and CEO, was explicit about the system's capabilities: "By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable. This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers, and taxpayers."

Alex Karp, Co-Founder and CEO of Palantir, described the speed differential in fraud detection: "10 seconds versus..." He didn't need to finish the sentence. The implication was clear. What previously took weeks or months of manual investigation now happens in real-time during loan processing.

Palantir isn't some startup experimenting with AI. They're the company providing intelligence software to the U.S. Army, Air Force, Space Force, and Navy through their Maven Smart System. They're specialists in finding patterns in massive datasets that human analysts would never detect. And they're now applying that technology to mortgage fraud detection.

Here's what this means for purchased tradelines. The AI can identify patterns like sudden credit score jumps followed by mortgage applications. It can correlate timing between when authorized user accounts appear on credit reports and when loan applications are submitted. It can detect clusters of authorized user accounts coming from the same primary cardholders, indicating commercial tradeline operations. It can identify borrowers who are removed from authorized user accounts shortly after mortgage closing, which is the standard practice in tradeline rentals.

Prior to this AI system, detecting purchased tradelines required manual investigation triggered by some red flag—usually loan default. A borrower would stop making payments, the lender would investigate, and they might discover the purchased tradelines during that investigation. But most purchased tradeline mortgages never got investigated because most borrowers kept making payments, and lenders had no reason to dig deeper.

That just changed. With AI analyzing every loan application in real-time, purchased tradelines will be flagged automatically, even if the borrower never misses a payment. The system can detect patterns that indicate commercial tradeline purchases without needing any manual investigation at all.

And here's the critical point: Fannie Mae disclosed in their annual report that fraudulent or potentially fraudulent transactions contributed to the company setting aside $752 million for multifamily lending credit losses in 2024. They have a massive financial incentive to eliminate fraud, and they now have the technology to do it.

When FHFA Director William Pulte said "No one is above the law" and "we will find criminals who try to defraud our system," he wasn't making empty threats. He was announcing a technological capability that will fundamentally change the risk calculus for anyone considering tradeline purchases.

The CFPB's 2025 Enforcement Priority: Mortgage Fraud at the Top

The timing of Fannie Mae's AI system launch coincides with a major shift in Consumer Financial Protection Bureau enforcement priorities. In early 2025, CFPB Chief Legal Officer Mark Paoletta issued a memo outlining how the Bureau will focus its resources on "tangible harm to consumers" by reallocating enforcement and supervision resources.

The memo established a clear enforcement hierarchy, and mortgage fraud sits at the very top as the Bureau's highest priority. This isn't symbolic. This represents a deliberate decision to dedicate investigative resources, legal staff, and prosecution efforts primarily to mortgage fraud cases.

The CFPB's other priorities follow in order: Fair Credit Reporting Act and Regulation V data furnishing violations, Fair Debt Collection Practices Act and Regulation F violations relating to consumer contracts and debts, various fraudulent overcharges and fees, and protection of consumer information resulting in actual loss to consumers.

But mortgage fraud is priority number one. And when you combine this CFPB focus with Fannie Mae's new AI detection capabilities and the FHFA's fraud rule requiring Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to establish programs detecting and reporting fraud, you have a coordinated federal effort that will catch purchased tradeline schemes at an unprecedented scale.

Here's what happens when these systems identify potential fraud. The regulated entities are required to report suspicious activity to regulatory and law enforcement authorities, including FHFA. Those reports trigger investigations. Federal prosecutors review the evidence. And when they find clear cases of borrowers using purchased tradelines to obtain mortgages they wouldn't have qualified for, they have everything they need for bank fraud charges.

The federal conviction rate is over 99%. When federal prosecutors decide to charge you, you're almost certainly going to be convicted. And unlike state charges where you might get probation, federal prosecutors stack charges and pursue prison time.

I've seen federal prosecutors work. I've been on the receiving end of federal charges. They don't bring cases unless they're certain they can win, and they don't pursue prosecution unless they want to make a statement. With mortgage fraud as the CFPB's top priority and AI systems flagging potential cases automatically, federal prosecutors will have more mortgage fraud cases than they can possibly handle.

They'll pick the clearest cases to prosecute. Cases where borrowers purchased multiple tradelines. Cases where credit scores jumped 100+ points. Cases where mortgage applications happened within 30 days of tradeline posting. Cases where borrowers were removed from tradeline accounts shortly after closing. Cases that send a clear message to the industry and to consumers: this will not be tolerated.

Do you want to be that test case? Do you want to be the example federal prosecutors use to show that credit score manipulation for mortgage fraud will result in prison time?

Legitimate vs. Commercial Authorized User Accounts: Where the Law Draws the Line

Understanding the legal distinction between legitimate authorized user accounts and commercial tradeline purchases is critical, because this is exactly where federal prosecutors draw the line between legal credit building and criminal fraud.

Legitimate authorized user scenarios are completely legal and actually encouraged by financial institutions. When parents add their 18-year-old daughter to their credit card to help her establish credit history before college, giving her access to the card for emergencies, that's not fraud. Banks actively promote this practice as a way for young adults to build credit responsibly.

When a wife with excellent credit adds her husband as an authorized user while he rebuilds after a past bankruptcy, and they share finances and household expenses, that's legal. There's a genuine relationship, shared financial interests, and the authorized user account accurately reflects the household's creditworthiness.

When an older sibling adds a younger sibling, or when business partners add each other to business credit cards, these are relationship-based situations where there's genuine connection and often actual card access. The credit bureaus report this information, lenders consider it, and everyone understands that the authorized user is benefiting from someone else's credit history as part of a real relationship.

What makes these scenarios legal? The relationship is real. The cardholder voluntarily helps someone they know. There's no commercial transaction designed specifically to manipulate credit scores for loan approval. The authorized user often has actual access to the account. And the credit history being reported actually reflects something meaningful about the borrower's financial network and support system.

Now contrast that with commercial tradeline purchases. You pay a stranger $1,500 to add you as an authorized user on their credit card for 60-90 days. You never meet them. You never get access to the card. You cannot make purchases. The sole purpose is to inflate your credit score temporarily. You'll be removed automatically when your rental period expires.

This isn't a relationship. This is a commercial transaction designed to exploit the Equal Credit Opportunity Act's requirement that credit bureaus treat all authorized users equally. You're not actually an authorized user in any meaningful sense—you have zero authorization to use the account. You're renting someone's credit history for the specific purpose of deceiving lenders about your creditworthiness.

The Federal Reserve's 2010 study on piggybacking credit acknowledged this distinction. They noted that about 33% of Americans have been authorized users at some point, but those are primarily teenagers added by parents, spouses added by partners, adult children helping elderly parents, and people in actual relationships with actual access to actual credit cards.

Commercial tradeline purchases are fundamentally different. When federal prosecutors look at your case, they're asking: Was this a genuine relationship or a commercial fraud scheme? Did the authorized user have actual access to the account or was this purely for credit score manipulation? Did the borrower disclose the commercial nature of the transaction when applying for a loan?

If the answers are "commercial fraud scheme," "purely for manipulation," and "no disclosure," you're looking at federal bank fraud charges.

As I discussed in my comprehensive analysis "Are Tradelines Legal? The Truth About the Gray Area That Could Land You in Federal Prison," the difference between legitimate authorized users and commercial tradeline schemes is like the difference between your parent teaching you to drive in their car versus paying a stranger to take your driving test for you. One is help. One is fraud.

Real-World Consequences: What Happens When You Default on a Tradeline-Boosted Mortgage

Let me walk you through what actually happens when someone uses purchased tradelines to get a mortgage and then defaults. This isn't hypothetical. This is the sequence of events that triggers federal criminal investigations.

You purchased three tradelines for $4,500 total. Your credit score jumped from 580 to 695. You applied for a $350,000 mortgage and got approved at a 6.5% interest rate. Without the tradeline boost, you would have been denied or offered a 9% rate on a much smaller loan amount.

You close on the house. You're thrilled. The tradeline company removed you from the accounts 90 days later as contracted, and your score dropped back to 600, but by then you already have the mortgage, so who cares?

Then life happens. You lose your job. Medical emergency. Divorce. Unexpected major expense. Something causes you to fall behind on mortgage payments. After 90 days of non-payment, the lender starts foreclosure proceedings.

During foreclosure, lenders conduct extensive investigations to understand how the loan was originated and whether there were any irregularities. They pull your current credit report and compare it to the credit report from when you applied for the mortgage. They notice something immediately: three authorized user accounts that were on your credit report when you applied are no longer there.

This triggers deeper investigation. The lender contacts the credit bureaus to get your full credit history with dates when accounts were added and removed. They discover you were added to three high-limit, perfect-payment-history accounts 45 days before your mortgage application. They discover you were removed from all three accounts 90 days after closing.

The pattern is unmistakable. You purchased tradelines specifically to qualify for the mortgage. Your true credit score at the time of application was approximately 580, not the 695 shown on your credit report. You misrepresented your creditworthiness to obtain a loan you shouldn't have qualified for.

The lender reports this to FHFA as required under their fraud detection and reporting obligations. FHFA reviews the case and determines there's evidence of mortgage fraud. They refer the case to federal prosecutors.

Federal prosecutors pull your bank records. They find the $4,500 payment to the tradeline company. They subpoena the tradeline company's records and get documentation showing you specifically purchased these accounts for credit score improvement. They pull your loan application and find no disclosure that your credit score was artificially inflated through commercial tradeline purchases.

They now have everything they need: evidence that you knowingly used false or misleading information (artificially inflated credit score) to obtain a loan you wouldn't have qualified for otherwise (mortgage fraud), causing financial harm to a federally-backed lending institution (bank fraud).

Federal prosecutors file charges under 18 U.S.C. § 1344. You're now facing up to 30 years in federal prison and up to $1 million in fines. Your attorney tells you that the federal conviction rate is over 99% and advises you to take a plea deal. You plead guilty to a reduced charge, agree to pay restitution to the lender for their losses, and receive a federal felony conviction and likely prison time.

But even if you avoid prison through a plea deal, you now have a federal felony conviction on your record. You've lost the house to foreclosure. You owe restitution that could take decades to pay off. You cannot get approved for any future mortgages. Many employers won't hire someone with a fraud conviction. Professional licenses are revoked or denied. Your financial life is destroyed.

This isn't a scare tactic. This is the actual sequence of events that happens when tradeline-boosted mortgages default. And with Fannie Mae's new AI system, this investigation will happen even if you never default, because the AI will flag the pattern automatically during routine fraud monitoring.

The Secret Formulas: Why You're Gambling With Your Freedom

Here's something tradeline companies definitely don't tell you: both FICO and VantageScore keep their exact scoring formulas proprietary and secret. You're paying thousands of dollars to manipulate an algorithm you don't fully understand, hoping it works in your favor, while risking federal prosecution if you use the results to obtain credit.

We know the general factors that influence credit scores. Payment history accounts for 35% of your FICO score. Amounts owed and utilization account for 30%. Length of credit history is 15%. Credit mix is 10%. New credit is 10%. These are the public-facing percentages that credit scoring companies share.

But the actual mathematical formulas? Secret. How much weight authorized user accounts receive versus primary accounts? Secret. How scoring models identify and potentially discount purchased tradelines? Secret. What triggers manual reviews during mortgage underwriting? Secret.

The Federal Reserve's 2010 study acknowledged this problem. They noted that "credit scoring modelers cannot distinguish spousal from non-spousal authorized user accounts" because the data systems don't indicate which authorized users are spouses and which are not. This forces credit scoring models to treat all authorized users equally to comply with the Equal Credit Opportunity Act.

But here's what the study also found: credit scoring companies are actively working on ways to identify and discount commercial tradeline purchases. FICO has revised their scoring model to place less weight on accounts where an individual is an authorized user. VantageScore excludes authorized user tradelines from their models entirely.

The companies that facilitate tradeline sales tell you that scores will increase by 50-150 points, but they have no idea whether that's actually true for you. They're guessing based on patterns they've observed, but those patterns are based on older scoring models that may no longer apply. The newest FICO and VantageScore versions may already discount or ignore the tradelines you're purchasing.

You're spending $1,500 to $4,000 on a gamble. Maybe your score goes up. Maybe it doesn't. Maybe it goes up initially but gets recalculated when the lender uses a different scoring model. Maybe it triggers fraud detection algorithms that flag your application for manual review.

And if you use that artificially inflated score to apply for a mortgage? You're gambling with 30 years of your freedom on an algorithm you don't understand, can't control, and that's actively being modified to defeat the exact scheme you're participating in.

That's not a smart financial decision. That's a catastrophic risk assessment failure.

What to Do If You've Already Purchased Tradelines

Maybe you're reading this and feeling sick to your stomach. Maybe you already bought tradelines. Maybe you already used them to get a mortgage. Maybe you're terrified that federal agents are going to show up at your door.

Take a breath. Here's what you need to do right now.

First, stop immediately. Don't apply for any more credit using purchased tradelines. Don't use any CPNs you may have bought from the same companies. Don't engage in any other activities that could be construed as fraud. The best time to stop was before you started. The second-best time is right now.

Second, consult a criminal defense attorney who handles federal cases. Not a credit repair company. Not a financial advisor. Not a mortgage broker. A criminal defense attorney with experience in federal fraud cases. Tell them everything. Attorney-client privilege protects your conversation. They can advise you on your actual legal exposure and next steps.

Be completely honest with your attorney about everything. When you purchased the tradelines. How much you paid. What you were told. Whether you used them to apply for loans. Whether you're currently in foreclosure or default. Whether you disclosed the tradelines to lenders. Everything.

Your attorney needs complete information to assess your risk and develop a defense strategy if charges are filed. If you lie to your attorney or withhold information, you're only hurting yourself.

Third, report the company that sold you the tradelines. Go to the FTC's complaint portal at https://reportfraud.ftc.gov/ and file a detailed complaint. Include the company name, what they charged you, what they promised, any marketing materials they provided, and any communications you have.

This serves two purposes. It helps the FTC identify and shut down fraudulent operations, protecting other consumers. And it may help establish that you were a victim of their fraud, which could matter if charges are ever filed against you. You can argue that you were deceived by a company making false claims about legality and effectiveness.

Fourth, document everything. Save every email, receipt, text message, and piece of advertising from the tradeline company. Screenshot their website. Save their marketing materials. Document what they promised, what they claimed was legal, what they told you about disclosure requirements.

If you face criminal charges, you want to prove you were deceived. Evidence that the company explicitly told you tradelines were legal, that you didn't need to disclose them, that lenders couldn't tell they were purchased—all of that becomes critical in demonstrating you weren't trying to commit fraud, you were misled by a fraudulent company.

Fifth, fix your credit the legal way going forward. Start making all payments on time. Dispute genuine errors on your credit reports through proper FCRA procedures. Pay down credit card balances. Build real, sustainable credit history through legitimate means.

If you're currently in a mortgage you obtained through purchased tradelines, make every single payment on time. Never miss a payment. Never be late. The investigation sequence I described earlier gets triggered by default. As long as you're current on the mortgage, there's much less likelihood of investigation.

And finally, learn from this experience. Share your story with others to prevent them from making the same mistake. The tradeline industry thrives on secrecy and confusion. When people speak openly about being scammed or about the legal risks they took, it helps protect others.

At Credlocity, we've helped hundreds of clients who previously purchased tradelines and now want to build credit legitimately. We don't judge. We don't shame. We provide education about federal credit laws and consumer protection rights and help people develop sustainable credit improvement strategies.

If you've already made a mistake, the best thing you can do is stop making it worse and start building real credit the right way.

How Legitimate Credit Repair Actually Works

I know what you're thinking. Your credit is terrible. You need to buy a house or a car. You need better credit right now, not in two years. That's why tradelines sound so appealing—instant results without the hard work of actually improving your financial habits.

But here's what nobody tells you: real credit improvement isn't as slow as you think, and it's nowhere near as risky as tradeline schemes.

Start by getting your free credit reports from all three bureaus at AnnualCreditReport.com. Review them carefully for errors, inaccuracies, duplicate accounts, accounts that aren't yours, incorrect balances or payment histories, and information that's past the legal reporting period.

Under the Fair Credit Reporting Act, you have the right to dispute inaccurate information. This isn't the same as disputing accurate information, which some fraudulent credit repair companies encourage. I'm talking about genuine errors that should be corrected.

Document every error you find. Draft dispute letters citing the specific inaccuracies and explaining why the information is wrong. Send disputes to the credit bureaus by certified mail with return receipt. The bureaus must investigate within 30 days.

This process works. Our clients at Credlocity have successfully removed $3.8 million in unverified debt from credit reports using proper FCRA dispute procedures. We don't use schemes or tricks. We identify genuine errors and help clients exercise their legal rights to have those errors corrected.

Next, make every payment on time from this moment forward. Your payment history is 35% of your credit score—the single biggest factor. Set up automatic payments for at least the minimum amount due on every account. Even if you can only afford minimums, pay them on time every single month.

Consistent on-time payments for 6-12 months will significantly improve your score. This isn't instant like purchased tradelines, but it's real improvement that reflects actual financial behavior, and no federal prosecutor will ever investigate you for it.

Pay down credit card balances strategically. Your credit utilization ratio—how much of your available credit you're using—accounts for 30% of your score. Get all credit cards below 70% utilization first, then work toward 30%, then aim for under 10%.

Can't pay them all at once? Pay them down gradually. Pay more than the minimum. Consider paying twice per month to keep reported balances lower. Every reduction in utilization helps your score.

Consider a secured credit card if your credit is severely damaged. Put down $200-$500 as a security deposit. Use the card for small purchases and pay the balance in full every month. After 6-12 months of perfect payments, most secured cards graduate to unsecured cards and you get your deposit back.

This builds real credit history that demonstrates actual creditworthiness. It's not as fast as buying tradelines, but it's sustainable, it's legal, and it actually improves your financial management skills.

And yes, you can become a legitimate authorized user through actual relationships. If you have family or close friends with excellent credit who genuinely want to help you, ask about authorized user status as part of a real relationship. The difference is they actually know you, you might actually use the card with their permission, and there's no commercial transaction designed to deceive lenders.

At Credlocity, we provide comprehensive support for legitimate credit repair. Monthly one-on-one consultations with certified credit consultants. Monthly budgeting assistance to help you manage finances effectively. Mobile app access to track progress in real-time. Education about your rights under the Fair Credit Reporting Act and other consumer protection laws.

We don't sell tradelines. We don't promise specific score increases. We don't take shortcuts that put you at legal risk. We do the work legally, ethically, and effectively, and our track record of serving over 79,000 clients with zero negative BBB reviews speaks for itself.

My Personal Warning: I've Been Where You Could End Up

I need to tell you something that makes me uniquely qualified to give you this warning, and something that makes my competitors uncomfortable when they hear it.

I've been to federal prison. Multiple times. Not for credit fraud—for addiction-related issues that I battled for years. I've been in recovery since March 5, 2015. That's 3,900+ days clean and sober.

I've never hidden this fact. When industry critics try to use my criminal record as a weapon against me—thinking they've discovered some devastating secret that will destroy my credibility—they've actually proven exactly why you should listen to me.

Because unlike the people selling CPNs and tradelines who've never faced consequences, I know exactly what federal prison is. I know what those doors sound like when they close behind you. I know what it's like to be strip-searched. I know what it feels like to watch your family leave after visiting hours and not know when you'll hold them again as a free person. I know what time feels like when you can't just leave.

I know every manipulation tactic. Every justification for bad behavior. Every lie you tell yourself when you know you're doing something wrong but you're desperate enough to do it anyway. Every predator who sees vulnerability and moves in for the kill.

I've seen it all. Lived through it all. Survived it all. And I'm using that lived experience to warn you about the consequences of credit fraud schemes.

So when I tell you to stay away from tradeline schemes that could land you in federal prison, I'm not reading from a legal textbook. I'm telling you from lived experience. I'm telling you as someone who has been exactly where you could end up.

And I'm telling you from the bottom of my heart: no credit score is worth federal prison time. No house is worth watching your children grow up through prison visiting room glass. No car is worth losing years of your life.

The people selling you tradelines? They've never been to prison. They have no idea what they're asking you to risk. They're making money off your desperation while exposing you to catastrophic legal consequences they'll never face.

I do know. And I'm telling you: run from these schemes. Run fast. Run far.

If you want to know more about my story and why it qualifies me to warn you about credit fraud, read my full account of bad credit, desperation, and the federal prison system. It's not comfortable reading. But it might save you from the biggest mistake of your life.

The "Everyone's Doing It" Fallacy

Tradeline companies love to cite statistics to normalize their business model. They'll tell you that 33% of Americans with credit files have been authorized users at some point. They'll point to the Federal Reserve study confirming this statistic. They'll argue that if a third of Americans are authorized users, how can it be fraud?

This is deliberate confusion of two completely different things, and you need to understand the distinction.

Yes, approximately 33% of Americans have been authorized users. You know who those people are? Teenagers added by their parents to teach financial responsibility. Spouses added by their partners to share household credit. Adult children helping elderly parents manage finances. People in actual relationships with actual access to actual credit cards.

That's not fraud. Nobody's going to federal prison for that. These are legitimate authorized user relationships that the Equal Credit Opportunity Act was specifically designed to protect.

But when you pay a stranger $1,500 to add you to their credit card for 60 days so you can artificially inflate your score to get a mortgage—that's different. That's a commercial transaction with the sole purpose of manipulating your credit score to deceive lenders.

The difference between legitimate authorized users and commercial tradeline schemes is the difference between your parent teaching you to drive in their car versus paying a stranger to take your driving test for you. One is help. One is fraud.

The tradeline industry deliberately conflates these categories to create a false sense of normalcy. They want you to think, "Well, if 33% of Americans are authorized users, this must be legal and normal." But they're comparing their commercial fraud scheme to legitimate family relationships.

Federal prosecutors understand this distinction perfectly. When they're deciding whether to charge someone with mortgage fraud, they're asking: Was this a genuine relationship or a commercial scheme? Did the authorized user have actual access or was this purely for score manipulation? Did the borrower disclose the commercial nature when applying for a loan?

If it's a commercial scheme with no actual access and no disclosure, you're facing federal bank fraud charges regardless of how many statistics the tradeline company cited to make it seem normal.

Don't let them gaslight you into thinking everyone's doing it so it must be legal. Everyone's not doing it. Families helping family members is what everyone's doing. Commercial tradeline fraud schemes are what criminals are doing. And federal prosecutors are coming for them.

Should You Buy Tradelines? The Direct Answer

Given everything we've covered—the FHFA's definition of mortgage fraud, the FTC's enforcement pattern, the CFPB's top enforcement priority, Fannie Mae's AI detection system, the federal bank fraud statute, and my personal experience with the federal prison system—let me answer the question directly.

For general credit building without a specific loan application? My answer is no. The risks massively outweigh any potential benefits.

You're paying $500-$3,000 for temporary score increases that disappear when you're removed from the accounts. You're operating in a gray area where federal enforcement is actively increasing. If the primary cardholder misses a payment while you're an authorized user, it damages your credit. The companies facilitating these transactions are violating CROA and facing FTC shutdowns.

There's no upside that justifies these risks for general credit building.

For mortgage or auto loan approval specifically? My answer is absolutely not. This crosses from a gray area into criminal territory.

If you're considering buying tradelines specifically to qualify for a mortgage, auto loan, or credit card you wouldn't otherwise get approved for, you're entering federal bank fraud territory. You're misrepresenting your creditworthiness to obtain credit through false pretenses. That's 18 U.S.C. § 1344 with penalties up to 30 years in prison and $1 million in fines.

The temporary credit boost isn't worth federal prison time. It's not worth destroying your life. It's not worth the risk.

And with Fannie Mae's AI system now detecting patterns that were previously undetectable, you're not just risking getting caught if you default. You're risking getting caught during routine fraud monitoring even if you make every payment on time.

Don't do it. Build your credit the legitimate way. It takes longer. It's harder. It requires discipline and patience. But it's the only approach that won't potentially land you in federal prison.

About Credlocity: Building Credit the Right Way Since 2008

I founded Credlocity in 2008 after being scammed by Lexington Law for $1,847. That experience—losing nearly two thousand dollars to a company that did nothing to help my credit—showed me how predatory the credit repair industry can be. It also showed me that consumers desperately need ethical, transparent alternatives.

For 17 years, we've been providing exactly that. Credlocity operates under strict compliance with the Credit Repair Organizations Act, the Telemarketing Sales Rule, and all federal credit laws. We don't take shortcuts. We don't sell schemes. We don't put clients at legal risk.

We've served over 79,000 clients nationwide and successfully removed $3.8 million in unverified debt from credit reports. We maintain a perfect record with the Better Business Bureau with zero negative reviews. We operate in all 50 states with the same ethical standards everywhere.

Our approach is simple: we help clients identify genuine errors on their credit reports and exercise their legal rights under the Fair Credit Reporting Act to have those errors corrected. We provide monthly one-on-one consultations with Board Certified Credit Consultants who have the same certifications I hold: BCCC, CCSC, CCRS, and FCRA Certified Professional.

We include monthly budgeting assistance in all our plans because we understand that credit repair without financial education doesn't create lasting change. We provide mobile app access so clients can track progress in real-time. And we offer a 30-day free trial with no credit card required, so you can evaluate our services before paying anything, along with our 180-day money-back guarantee.

As a Hispanic-owned, minority-owned, women-owned, and LGBTQAI+-owned business, we're committed to serving underserved communities who are disproportionately targeted by credit repair scams and predatory lending. We believe everyone deserves access to ethical credit repair services and financial education.

Since 2019, I've also conducted investigative journalism into credit repair fraud, documenting over $12 billion in consumer damages across seven major fraud cases. This work has been featured in Bold Journey, Voyage LA, and Shoutout LA, and it informs everything we do at Credlocity.

We don't just avoid the schemes that others use—we actively expose them. We educate consumers about credit repair scams so they can protect themselves. We advocate for stronger consumer protections and better enforcement of existing laws.

If you're serious about improving your credit legitimately, ethically, and effectively, we're here to help. Visit our website at Credlocity.com or email admin@credlocity.com to get started with a Board Certified Credit Consultant.

Conclusion: The Only Question That Matters

We've covered a lot of ground in this article. The legal framework of authorized user accounts. The FHFA's definition of mortgage fraud. The FTC's enforcement pattern. The CFPB's priorities. Fannie Mae's AI detection. Federal bank fraud statutes. My personal experience with the federal prison system.

But all of it comes down to one simple question: Is the temporary boost to your credit score worth the risk of federal prison time?

That's really what we're talking about here. Not whether tradelines are technically legal in some abstract sense. Not whether the Equal Credit Opportunity Act protects authorized user accounts. Not whether credit scoring models can distinguish purchased tradelines from legitimate ones.

The question is whether you're willing to risk 30 years in federal prison and $1 million in fines for a credit score boost that might qualify you for a mortgage you can't actually afford based on your real creditworthiness.

I know the answer to that question. Every person who's spent even one day in federal prison knows the answer to that question. The answer is no. It's not worth it. It's never worth it.

Build your credit the right way. Make your payments on time. Pay down your balances. Dispute genuine errors. Work with legitimate credit repair companies that operate legally and ethically. Be patient. Be disciplined. Be honest.

Your future self—the one who didn't go to federal prison for mortgage fraud—will thank you.

And if you need help building credit legitimately, Credlocity has been doing this work ethically for 17 years. We're here when you're ready.

Legal Disclosures

Not Legal or Financial Advice

This article provides educational information only and does not constitute legal or financial advice. Every individual's situation is unique, and you should consult with qualified professionals regarding your specific circumstances. For legal questions, consult a licensed attorney. For financial advice, work with a qualified financial advisor.

CROA and TSR Compliance Statement

Credlocity operates exclusively within the requirements and limitations of the Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rule (TSR). We make no guarantees regarding credit score improvements or specific results. Credit repair outcomes depend on numerous factors including the accuracy of information on your credit reports, your credit history, and actions you take during the process.

Accurate Information Disclaimer

We cannot and do not remove accurate negative information from credit reports. We work exclusively to address inaccurate, unverifiable, or improperly reported information as permitted under the Fair Credit Reporting Act and related consumer protection laws.

TSR Phone Enrollment Warning

Federal law requires that credit repair companies who enroll clients over the phone must wait six months before charging any fees. Credlocity avoids this requirement by accepting enrollments only through our online platform, never over the phone. We disclose this information so consumers can protect themselves from companies violating this law. Any credit repair company charging fees immediately after a phone consultation is operating illegally, and you should report them to the FTC at https://reportfraud.ftc.gov/.

FTC Reporting Encouragement

We encourage all consumers to report any credit repair company who charges for services after signing up following a phone consultation at https://reportfraud.ftc.gov/. Consumer protection depends on consumers reporting violations when they encounter them.

Sources and References

1. Federal Housing Finance Agency. "Fraud Prevention." FHFA.gov, https://www.fhfa.gov/programs/fraud-prevention. Accessed January 15, 2025.

2. Board of Governors of the Federal Reserve System. "Federal Fair Lending Regulations and Statutes: Equal Credit Opportunity (Regulation B)." Consumer Compliance Handbook, https://www.federalreserve.gov/boarddocs/supmanual/cch/fair_lend_reg_b.pdf. Accessed January 15, 2025.

3. Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691 et seq., https://www.govinfo.gov/content/pkg/USCODE-2011-title15/pdf/USCODE-2011-title15-chap41-subchapIV.pdf

4. Board of Governors of the Federal Reserve System. "Credit Where None is Due? Authorized User Account Status and 'Piggybacking Credit.'" Federal Reserve Finance and Economics Discussion Series, March 5, 2010, https://www.federalreserve.gov/pubs/feds/2010/201023/201023pap.pdf

5. Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679 et seq., https://www.credlocity.com/credit-repair-organizations-act-croa-guide

6. Bank Fraud Statute, 18 U.S.C. § 1344, https://www.law.cornell.edu/uscode/text/18/1344

7. Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., https://www.ftc.gov/legal-library/browse/statutes/fair-credit-reporting-act

8. Federal Trade Commission. "FTC Action Leads to Ban of Deceptive Credit Repair Operation BoostMyScore." FTC.gov, February 11, 2020, https://www.ftc.gov/news-events/news/press-releases/2020/02/ftc-action-leads-ban-deceptive-credit-repair-operation-boostmyscore

9. Federal Trade Commission. "FTC Takes Action Against The Credit Game Credit Repair Scheme." FTC.gov, May 2022, https://www.ftc.gov/news-events/news/press-releases/2022/05/ftc-takes-action-against-credit-game-credit-repair-scheme

10. The MortgagePoint. "Fannie Mae Leverages AI to Strengthen Mortgage Fraud Prevention." TheMortgagePoint.com, May 28, 2025, https://themortgagepoint.com/2025/05/28/fannie-mae-enhances-fraud-detection-through-new-ai-partnership/

11. Consumer Financial Protection Bureau. "CFPB Enforcement Priorities." CFPB.gov, 2025.

12. Vazquez, Joeziel. "Are Tradelines Legal? The Truth About the Gray Area That Could Land You in Federal Prison." Credlocity, October 6, 2023, https://www.credlocity.com/post/are-trade-lines-legal-unraveling-the-truth

13. Vazquez, Joeziel. "The Reality of Bad Credit and How to Avoid Being a Felon and Sentenced to Federal Prison." Credlocity, 2025, https://www.credlocity.com/post/the-reality-of-bad-credit-and-how-to-avoid-being-a-felon-and-sentenced-to-federal-prison

14. Telemarketing Sales Rule (TSR), 16 CFR Part 310, https://www.credlocity.com/credit-repair-tsr-compliance-guide-2026

15. Federal Housing Finance Agency. "Natural Disaster-Related Fraud Prevention Tips and Resources for Borrowers, Renters, and the Mortgage Industry." FHFA.gov, https://www.fhfa.gov/programs/fraud-prevention/natural-disaster

16. Fannie Mae. "Mortgage Fraud Prevention." FannieMae.com, https://singlefamily.fanniemae.com/mortgage-fraud-prevention

About the Author

Joeziel Vazquez is the CEO and Founder of Credlocity Business Group LLC, established in 2008 in Philadelphia, Pennsylvania. He holds professional certifications including Board Certified Credit Consultant (BCCC), Certified Credit Score Consultant (CCSC), Certified Credit Repair Specialist (CCRS), and FCRA Certified Professional. With 17 years of experience, Joeziel has served over 79,000 clients nationwide and successfully removed $3.8 million in unverified debt from credit reports.

Joeziel is a nationally recognized credit repair and fintech expert, educator, and investigative journalist. Since 2019, he has documented over $12 billion in consumer damages across seven major credit repair fraud cases. His investigative work has been featured in Bold Journey, Voyage LA, and Shoutout LA. His expertise in federal credit laws and commitment to consumer protection makes him a trusted voice in the credit repair industry.

As a Hispanic, minority, women, and LGBTQAI+-owned business owner, Joeziel is committed to serving underserved communities and advocating for stronger consumer protections in the financial services industry.

Connect with Joeziel on LinkedIn or email admin@credlocity.com for media inquiries.