The Louisiana Attorney General’s Office has issued three Cease and Desist Orders to three out-of-state credit repair companies. The Attorney General’s Office alleges that Caravan Credit Repair Services in Houston, Texas and Clean Credit and Kleen Credit in Tulsa, Oklahoma failed to properly register with the Louisiana Attorney General’s Office as a credit repair business, although they were allegedly advertising their services in the Baton Rouge and Lafayette area. Louisiana law requires all credit repair businesses operating and/or advertising in Louisiana to post a $100,000 surety bond with the Attorney General’s Office.
The Federal Trade Commission recommends consumers do their homework before obtaining the services of a credit repair organization. The following tips will help you spot a credit repair scam:
• Companies that want you to pay for credit repair services before they provide any services.
• Companies that do not tell you your legal rights and what you can do for yourself for free.
• Companies that recommend that you not contact a credit reporting company directly.
• Companies that suggest that you try to invent a “new” credit identity, then order a new credit report, by applying for an Employer Identification Number to use instead of your Social Security number.
If you have any questions regarding credit repair or believe you are a victim of a credit repair scam, please contact the Louisiana Attorney General’s Consumer Protection Hotline at 1-800-351-4889 or visit our website at www.agbuddycaldwell.com. You can also visit the Better Business Bureau website at www.bbb.org or reach them at 337-981-3497.
