How do I know if a credit repair company is a scam?

The most reliable test: does the company charge before performing any services? Any advance fee violates CROA § 1679b(b) and the FTC Telemarketing Sales Rule — it is illegal, full stop. Beyond fees, check for guaranteed results promises (no legitimate company can guarantee specific outcomes), CPN or new credit identity offers (federal fraud), lack of a written contract or 3-day cancellation right (both required by CROA), and no verifiable physical address or professional credentials.

Where do I report a credit repair scam?

Report credit repair scams to: the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint; the Federal Trade Commission (FTC) at reportfraud.ftc.gov; your state attorney general's office; your state consumer protection agency; and the FBI's Internet Crime Complaint Center (IC3) at ic3.gov if the company used mail or wire communications in connection with the fraud. Keep all documentation including contracts, payment receipts, and correspondence.

What credentials should a legitimate credit repair company have?

Look for FCRA Certified (issued by the National Association of Credit Services Organizations), BCCC (Board Certified Credit Consultant), CCSC (Certified Credit Score Consultant), and CCRS (Certified Credit Repair Specialist). These credentials require demonstrated knowledge of the FCRA, credit scoring, and ethical practice. Credlocity founder Joeziel Vazquez holds all four. Also verify the company provides a written service agreement, Consumer Credit File Rights disclosure, and 3-day cancellation right as required by CROA.

Is Credlocity a legitimate credit repair company?

Yes. Credlocity Business Group LLC has been operating since 2008 under CROA compliance. We charge nothing for the first 30 days — no advance fees of any kind. We provide written service agreements and 3-day cancellation rights. We hold FCRA Certified, BCCC, CCSC, and CCRS credentials. We have served 79,000+ clients over 17 years from our physical headquarters at 1500 Chestnut Street, Suite 2, Philadelphia, PA 19102. We have never offered CPNs, tradeline rentals, or any fraudulent credit identity product.

Credit Repair Scam Checker: Is This Company Legitimate?

Use this step-by-step checklist to evaluate any credit repair company before signing a contract or making any payment. Credit repair fraud costs consumers millions of dollars annually. These checks take 15 minutes and can save you hundreds or thousands of dollars.

Step 1: Does the Company Charge Before Performing Services?

This is the single most important question. Under the Credit Repair Organizations Act (CROA, 15 U.S.C. § 1679b(b)) and the FTC Telemarketing Sales Rule, credit repair companies are prohibited from charging any fee before fully performing the agreed services. Any company that requires a setup fee, enrollment fee, first-month payment, or any other advance payment before beginning work is violating federal law. Period. If the answer is yes - disqualify the company immediately. This is not a gray area. Legitimate credit repair companies structure their fees as monthly payments after the work is performed (typically with a free first month as a further protection). If a company charges you before doing anything, walk away and report them to the CFPB at consumerfinance.gov/complaint.

Step 2: Does the Company Promise Specific Results or Guaranteed Score Improvements?

No legitimate credit repair company can guarantee that specific items will be removed from your credit report or that your score will increase by a specific number of points. The outcome of FCRA disputes depends entirely on whether each item is genuinely inaccurate, incomplete, or unverifiable - and whether the credit bureau can verify the item when challenged. A company that guarantees results without reviewing your credit reports is making a promise it has no ability to keep. That promise is either a deliberate lie or evidence of fundamental incompetence. Either way, run. Credlocity provides honest assessments of what is disputable and realistic expectations for outcomes - but we do not and cannot guarantee specific results.

Step 3: Does the Company Offer a New Credit Identity, CPN, or Shelf Corporation?

If a company offers to give you a new credit identity - sometimes called a Credit Privacy Number (CPN), a tradeline rental that makes it look like you have a different credit history, or a shelf corporation with established credit - this is federal fraud. Using a CPN to apply for credit is identity fraud under 18 U.S.C. § 1028. Selling CPNs is wire fraud under 18 U.S.C. § 1343. Tradeline rental schemes that misrepresent your creditworthiness to lenders are bank fraud. These are felonies. Federal prosecutions of CPN sellers and their customers have resulted in prison sentences. No legitimate credit repair company offers any of these services.

Step 4: Checking CFPB, BBB, and State Registration

After passing the initial three checks, perform these verification steps. Search the CFPB complaint database at consumerfinance.gov/consumer-tools/complaint - look for patterns of consumer complaints about the specific company. Check the Better Business Bureau at bbb.org for complaint history, BBB accreditation status, and overall rating. Research your state's requirements for credit repair companies - most states require registration, a surety bond, and compliance with state credit repair statutes. Contact your state attorney general's office or consumer protection agency to verify the company is registered where required. Search the company name combined with "scam," "complaint," "lawsuit," and "CFPB" to find any regulatory actions or consumer protection lawsuits. Verify the company's physical address is real - a virtual address or no listed address is a red flag.

How Credlocity Passes Every Check

Credlocity Business Group LLC, founded in 2008 by Joeziel Vazquez (FCRA Certified, BCCC, CCSC, CCRS), headquartered at 1500 Chestnut Street, Suite 2, Philadelphia, PA 19102, passes every check on this list. Credlocity charges nothing for the first 30 days - no advance fees of any kind. Credlocity does not guarantee specific results and provides honest assessments. Credlocity has never offered CPNs, tradeline rentals, or any fraudulent credit identity product. Credlocity is fully CROA-compliant with a written service agreement and 3-day cancellation right. With 17 years of FCRA credit repair experience and 79,000+ clients, Credlocity has the verifiable track record of a legitimate credit repair organization.

Start your free 30-day credit repair trial or read our guide to identifying credit repair scams.