File Segregation can put an end to your credit problems overnight!  Instantly, erase all of your bad credit!  You can have a new credit file in just 30 days!  Your credit score will be perfect, you will appear to owe nothing, and you can buy anything you want! 

It’s your right to have a fresh start!

What could be better?  You can get your new credit file today for just $400!

Sorry, if I got you excited, but if something seems too good to be true…it usually is.

The file segregation strategy proposed by unscrupulous credit repair companies has been around for a while. They prey on unsuspecting consumers by placing ads on the internet, in magazines and in newspapers.

The story is that you can make the credit bureaus believe that you are a new person and start a new credit file. With a new credit file, you are able to go out and establish credit that you would not be able to get with your existing credit history.

Credit Repair Companies (I use this term loosely) that offer this “service” prey on people with foreclosures and bankruptcies. They try to convince them that it will be at least 10 years before they can qualify for credit again and their only hope of credit repair after bankruptcy is to implement this strategy!

According to the Federal Trade Commission, some of these companies are so eager to take advantage of ignorant consumers who actually believe that this strategy is legally, that they will often go so far as representing that they work for the government. (The government wouldn’t do anything illegal, right? It must be a legit deal!) These companies are guilty of lying to their customers and turning them into felons!

These companies establish a credit file for you in one of two ways. They either steal someone else who is recently died or who is living abroad, or they apply for an EIN from the IRS. When they apply for the EIN they ask you to use another address and phone number. The reason they do this is so that none of your previous account history can be linked to the new you!

For those of you who don’t know, and EIN is the equivalent of a Social Security Number from a business. While there is nothing wrong with applying for an EIN for your business, it is a felony to apply for an EIN under false pretenses. (Yes, applying for an EIN for a “business” that doesn’t exist for the sole purpose of creating a new credit file is a felony.)

The companies will then tell you to use this EIN as your Social Security Number when applying for credit in your name. In case you’ve been under a rock for the last few years, falsifying information on a loan application is also a felony.

To make matters worse, if you represent this as your Social Security Number when applying for credit over the phone or through mail, you could be found guilty of mail or wire fraud.

In addition to criminal charges, implementing this brilliant file segregation strategy also can leave you vulnerable to civil fraud charges!

And you thought bad credit was expensive!

Another flaw in this system is that if you’ve ever tried to establish credit when you don’t have any, it is easier said than done. Starting from scratch isn’t easy and it doesn’t happen overnight! So, not only do you spend money, run the risk of becoming a felon, but the strategy probably won’t work much quicker than if you just worked on legal strategies to credit repair.

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