How to Spot and Avoid Illegal Credit Repair Scams

The Law That Protects You

Ashley Boswell begins every scam-prevention conversation by pointing to the Credit Repair Organizations Act, or CROA. This federal law, enforced by the Federal Trade Commission, sets strict rules for how credit repair companies must operate. Damon Boswell explains that the CROA exists because, before it was passed, fraudulent companies routinely charged large upfront fees and made false promises about removing accurate negative information.

The most important protection, Damon & Ashley Boswell emphasize, is that a credit repair organization cannot charge you any fee before the agreed-upon service has been fully performed. If a company demands payment before delivering results, that is a direct violation of federal law.

Red Flag: Upfront Fees

Damon Boswell calls this the single clearest warning sign. Under the CROA, a credit repair company cannot charge or receive money for a service before that service is fully performed. Any company asking for payment before work is done — whether they call it a setup fee, consultation fee, or retainer — is breaking the law. Ashley Boswell advises walking away immediately.

Red Flag: Guaranteed Results

Ashley Boswell is blunt: no legitimate credit repair company can guarantee a specific outcome. The CROA prohibits credit repair organizations from guaranteeing the removal of accurate, verifiable information or promising a particular score increase. Damon Boswell notes that anyone promising '100% guaranteed deletions' or a set number of points is either lying or planning to use illegal methods.

Red Flag: Creating a New Identity

Damon Boswell warns against one of the most dangerous scams — companies that encourage you to create a new credit identity by applying for an Employer Identification Number, or EIN, to use in place of your Social Security number. Ashley Boswell stresses that this is not just a violation of the CROA; it is federal fraud. If a company suggests this, report them and end all contact.

Red Flag: Advising You to Lie

Damon & Ashley Boswell never dispute accurate, verifiable information on a client's behalf, because the CROA prohibits credit repair organizations from using illegal means or advising consumers to make false statements. Damon Boswell explains that legitimate credit repair focuses on inaccurate, unverifiable, outdated, or incomplete items — not erasing truthful history.

How to Choose a Legitimate Company

Ashley Boswell's checklist: the company must provide a written contract before any work begins, give you a three-day right to cancel without charge, explain your legal rights in writing, and never charge before services are performed. Damon Boswell adds that a reputable company will be transparent about what they can and cannot do, set realistic expectations, and welcome your questions.

At Mortgage Help ASAP, Damon & Ashley Boswell operate fully within the CROA. We provide written agreements, perform work before billing, and never promise specific results. If you want honest, compliant credit restoration, reach out and we will show you exactly how our process works.