The Reality of bad credit and how to avoid being a felon and sentenced to federal prison

The reality of bad credit affects millions of Americans everyday. Americans who suffer from bad credit do so in ways that many don't take into account. Not only do you not get a fancy credit card, or an unsecured loan, but many suffer by paying high interest rates, being denied the American dream to become a homeowner, even being denied for credit that is necessary like credit for dental or eye care needs.

When people google their problems looking for solutions you run into billions of ways to “help” you, but in reality 99% of what's on google is untrue or pushes you towards something that does not apply to you.

I performed a generic search “Get a new credit profile” the first ad that came up was a Transunion ad so you can sign up for their 29.95 a month service, then there are several other ad’s that have nothing to do with “getting a new credit profile”. Next after the ad’s the first generic search item that appears is a book from amazon titled: “How To Create A New Credit Profile, Obtain New Credit, And Rebuild Your Old Credit: A detailed step-by step process designed for anyone recovering from bad credit”. This is where I'm going with all this. We see millions and millions of ad’s that talk about CPN’s and how to “beat the credit system”. And we see millions of consumers fall victim to this type of scam. Do not fall for it. This is a complete scam, its illegal, and there is absolutely no way that your credit situation will get better over time. What you need is a professional credit repair firm who will look at your credit report spot errors and come up with a plan or blueprint to get you back on track.

WHAT IS A CPN:

A CPN number is known as a credit profile number, credit privacy number, and even a secondary credit number (SCN). These numbers are for sale and have generally been marketed to consumers who have bad credit, as sort of a path to great credit and a new start in life. But let's be serious, there is no such magical solution. Everything that is legal and worth it takes time.

If you are considering buying a CPN don't do it! Take this warning seriously because it's illegal and will land you in jail. The Federal Trade Commission has labeled this a SCAM. The FTC breaks this scam down as “Identity theft” in most cases.

Recently the United States Justice Department, the Federal Trade Commission, the Consumer Financial Protection Bureau, and other federal agencies have been working together to crack down not only on the fraudsters who are offering CPN’s/SCN’s but also on those who are buying them. The very recent case of USA v. Michael Griffin Case No. 5:20-CR-245-1D(2) is a very real example of what they are doing to crack down on these and other SCAMS (i.e Credit Sweeps).

WHAT IS A CREDIT SWEEP:

In the credit repair industry the term credit sweep is used in several different ways. Credit Sweep can be a “dispute all at once (valid or invalid) reported trade lines”, could also be filing an identity theft affidavit and police report to have the credit report swept of all tradelines, or it could be an arrangement between a bank and a client to use left over funds in an account to pay down a customers reported debt. The last one being the legal one, the first two very very illegal in different ways and a complete waste of money.

Daniel Rosen, a credit repair software provider describes credit sweeps as “immoral, illegal, and detrimental” in his blog dated 7/13/2020, and he is correct about this. Although Mr.Rosen is a controversial figure in the credit repair community I would certainly agree 100% by his description of credit sweeps.

First the “dispute all at once (valid or invalid) reported trade lines” is a trick many fraudsters use to steal your money as a consumer. Because everything will come off of your report or be temporarily blocked while the disputes are being processed but about 30-60 days later it will reappear and you lose your money.

The second one also is bad, (filing an identity theft affidavit and police report to have the credit report swept of all tradelines), this one I would say is worse than the first one because this one involves you swearing on a federal affidavit something that is a lie, and then filing a fake police report, and sending both through the mail across state lines, Yikes! I smell fed time.

The third one, using left over funds or excess funds from an account to pay off debt that is being reported.

Overall every consumer should do his or her research and check credible sources to verify their research. Anything that promises fast results or overnight solutions wont be of much real help and will waste your time and money.