By changing numbers in my social security number or by using an EIN tax number, can I fool the credit bureaus into creating a completely clean, new credit file under my name?
Many credit repair operators have promoted this scheme, known as "file segregation". Technically, we have seen some few people that have succeeded in using a false Social Security Number and have fooled the credit bureaus into giving them a new credit identity. The scheme is complicated: one must change almost all identifying information about oneself and be very careful never to use the old information again. Most often, we've seen people embark on these schemes only to slip and, at some time, provide the old information mixed with the new. Then, both credit reports merge and the consumer is left with a tangled mess of deception and suspicious credit reports.
In the worst cases, people have been charged with crimes, or terminated from jobs, for using the false information.
This scheme has proven to be complex, difficult, and (according to the FTC) is considered illegal credit repair methods. Lying about any personal information on a credit application is usually a federal crime. Using these "file segregation" credit repair schemes requires an enormous amount of coordination, not to mention personal risk.
Recently, the FTC has gone out of its way to shut down any credit repair company that promotes literature discussing file segregation. It remains to be seen if they will be successful under the First Amendment.
If asked for our recommendation as to whether a person should try a file segregation credit repair program, our answer is always, "No, it is too risky, difficult and legally problematic."
Lexington Law - Legal and Effective Credit Report Repair. Learn more
More credit repair FAQs here.
Many credit repair operators have promoted this scheme, known as "file segregation". Technically, we have seen some few people that have succeeded in using a false Social Security Number and have fooled the credit bureaus into giving them a new credit identity. The scheme is complicated: one must change almost all identifying information about oneself and be very careful never to use the old information again. Most often, we've seen people embark on these schemes only to slip and, at some time, provide the old information mixed with the new. Then, both credit reports merge and the consumer is left with a tangled mess of deception and suspicious credit reports.
In the worst cases, people have been charged with crimes, or terminated from jobs, for using the false information.
This scheme has proven to be complex, difficult, and (according to the FTC) is considered illegal credit repair methods. Lying about any personal information on a credit application is usually a federal crime. Using these "file segregation" credit repair schemes requires an enormous amount of coordination, not to mention personal risk.
Recently, the FTC has gone out of its way to shut down any credit repair company that promotes literature discussing file segregation. It remains to be seen if they will be successful under the First Amendment.
If asked for our recommendation as to whether a person should try a file segregation credit repair program, our answer is always, "No, it is too risky, difficult and legally problematic."
Lexington Law - Legal and Effective Credit Report Repair. Learn more
More credit repair FAQs here.