While searching out scams to avoid recently I came across many that were willing, for a fee, to help me repair bad credit using a CPN or Credit Profile Number.

There is a lot of misinformation online about the CPN but what you need to know is you can’t use a fictional number in place of your valid Social Security Number when applying for most things or you wind up violating a bunch of laws and committing credit fraud.

The CPN is advertised as an alternative number that is created for the consumer to use in place of their real Social Security Number. Watch the sales pitch below to see how the CPN is sold to make people believe it can be used to apply for credit or car loans.

Much of the video above makes no sense in my opinion.

• “And now with this number you are able to build credit. And when you build credit you are able to go and borrow.” – Illegal.
• He explains that investors that are over extended need a CPN Credit Privacy Number to use to apply for credit since they are over extended on their real social security number. – Illegal.
• “You can go out and purchase a car, get a bank account, purchase a boat or purchase a house with the CPN number.” – Illegal.

This guy in the video isn’t the only one trying to sell this really bad idea on consumers to buy a CPN to repair their credit. Many others are as well. And that process is expensive. In the video above the guy says he can save you 70% off the typical $50,000 price for getting a CPN. His cost is apparently $15,000. Other sites will sell you a CPN for $2,000 (Source), some will sell them for $79 (Source) and in reality you could get a fake social security number to use for free using online SSN Validator site. – Source

I bet your wondering why I told you where you can get a valid CPN or alternative SSN for free. The bottom line is that using any alternative number other than your SSN to apply for credit is the worst thing you can do. It is illegal and opens you up for fraud charges. Any debt incurred with a CPN can’t be discharged with bankruptcy. Fraudulent credit is not eligible for discharge under bankruptcy.

Just read the terms and conditions from one of the online CPN sites and tell me if they think you can use your CPN for credit.

I understand and acknowledge; that in no way am I engaging or attempting to engage in FILE SEPARATION, and by signing this agreement, —– ONLY ROLE IS TO HELP ME OPEN A CREDIT PROFILE NUMBER WHICH WILL BE ATTACHED TO MY DBA FOR WHICH I PLAN TO USE FOR PERSONAL BUSINESS MATTERS FURTHERMORE, FOR PERSONAL BUSINESS MATTERS I DO PLAN TO USE CREDIT FOR THESE MATTERS AND IN NO WAY AM I ATTEMPTING TO CREATE A SITUATION OF FILE SEPARATE, BUT TO USE MY ’CREDIT PROFILE, DBA’ LEGALLY! I AGREE \TO HOLD —– HARMLESS; FOR THEY ARE ONLY PROCESSING MY BUSINESS PAPERWORK; AND SETTING UP MY BUSINESS DBA, UNDER WHICH ALL NECESSITIES APPLY! I UNDERSTAND (it is a federal crime to make any false statements on a loan or credit application… A credit repair company may advise you to do just that, but it is my statement by signing this contract —– HAS NEVER INFORMED ME; NOR ADVISED ME; TO MAKE ANY FALSE STATEMENTS; ON ANY CREDIT; OR LOAN APPLICATION. It is a federal crime to misrepresent your Social Security number. It also is a federal crime to obtain an EIN from the IRS under false pretenses. IT IS MY STATEMENT I AM SETTING UP A BUSINESS TO PROMOTE MYSELF AND MY PERSONAL BUSINESS ENDEAVORS, FOR WHICH IS WHY I APPLIED FOR A DBA AND AN IRS EIN! Furthermore, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.) —– HAS MADE THIS POINT ‘VERY’ CLEAR AND IN NO WAY AM I MAKING OR PLAN TO MAKE ANY FALSE STATEMENTS OR MISREPRESENTATION TO —– OR ANY PERSPECTIVE CREDITOR. I AGREE TO HOLD —– HARMLESS FOR I ONLY USED THEIR SERVICE TO ASSIST WITH PAPERWORK. – Source

Let me pull out those three very important points.

1. “I DO PLAN TO USE CREDIT FOR THESE MATTERS AND IN NO WAY AM I ATTEMPTING TO CREATE A SITUATION OF FILE SEPARATE”
2. “It is a federal crime to misrepresent your Social Security number.”
3. “Furthermore, you could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit and provide false information. Worse yet, file segregation likely would constitute civil fraud under many state laws.)”

On Craigslist I found a guy that was willing to sell me a CPN for $2,700. Here was his pitch.

“Basically you can purchase a CPN with three trade lines with at least one of them being 8 yrs or older and the other two with a high amount and that would guarantee your new CPN (Credit Profile Number) a score of 750 or better… Buy a car or whatever with this new credit and try to keep it in good standing so you never have to worry about credit issues again. Realistically for about $2,700 you can obtain this new start through the website and the trade lines connected to it. If you need help call me.

this is just like having a new SS#, but you just use it for credit and not for work or anything else. A EIN # is what you’re talking about and that is something totally different… All of our new CPN’s are guaranteed to pass any SS# validator. You add trade lines to the CPN to give it a score. The better the trade lines the higher the score will be. Most people have no clue that they can separate their birth SS# form their credit.”

The alternative number to apply for credit, CPN, or fake SSN is not a new scam. It’s been around for years.

There is no guarantee what number you’ll get from one of the CPN scammers. It could be a business identification number or it could simply be the social security number of someone else.

See if this press release from the Federal Trade Commission from 1999 sounds like the CPN scam.

Promoting False Identification Numbers To Create A “New Credit Identity” Is Illegal: FTC

Sixteen defendants targeted in a law enforcement crackdown on illegal credit repair services have agreed to settle federal charges that the “file segregation” advice and products violated federal law. The charges were brought by the Federal Trade Commission or the United States Department of Justice at the FTC’s request. The settlements will provide consumer redress for victims of the scam; bar future violations of the Credit Repair Organizations Act; bar deceptive claims about file segregation — including claims that it is legal — and require that the defendants notify their victims that using a false identification number to apply for credit is a felony.

The defendants used the Internet and other media to claim they could help consumers obtain new credit histories by obtaining new identification numbers through a practice known as file segregation. The firms sold instructions about how consumers could substitute federally-issued, nine-digit employee identification numbers or taxpayer identification numbers for social security numbers and use them illegally to build new credit profiles that would allow them to get credit they may be denied based on their real credit histories. Many of their ads claimed the practice was legal.

Settlement of the FTC charges will bar the defendants from violating provisions of the Credit Repair Organizations Act that prohibit charging or accepting payment for credit repair services before the services are provided. In addition, the settlements would bar them from representing that other government identification numbers can be lawfully used to conceal actual credit histories and from misrepresenting material facts concerning credit-related products or any other product or service.
The defendants would be required to notify their victims of the illegal nature of their products and would be barred from selling their customer lists. Thirteen of the settlements provide for full consumer redress. Financial declarations filed by three defendants indicate an inability to provide redress. Their settlements contain provisions to allow reopening of the issue if defendants are found to have misrepresented their inability to pay. All the settlements contain record keeping provisions to allow the FTC to monitor compliance.

The settlements of the “Operation New ID – Bad IDea” sweep are with Mehmet Akca (FTC File No. X990018); Frank Muniz (FTC File No. X990020); LSQ International (FTC File No. X990024), Standard Business Services (FTC File No. X990021); Pro Se Publications (FTC File No. X990023); Ross Sanford Leiss (FTC File No. X990026); Michael Lyons (X990027); Edward Lane (FTC File No. X990032); All About Communications (FTC File No. X990030); Express Financial Planning (FTC File No. X990034); Financial Publishers of America (FTC File No X990033); New Start (FTC File No. X990028); Frederick P. Ray (FTC File No. X990066); Internet Publications (FTC File No. X990064); P.M.. Enterprises (FTC File No. X990047); Fresh Start (FTC File No. X990044). – Source

or how about the following FTC information from 2001.

New Credit Identity Scam Violated Federal Laws: FTC

The operator of a Web site that sold credit repair advice and promised “perfect credit . . .instantly” has agreed to settle Federal Trade Commission allegations that his scheme violated federal law.

The scam was identified in “Operation New ID – Bad IDea,” an FTC initiative targeting illegal “credit repair” services. The settlement bars future violations of the Credit Repair Organizations Act and the FTC Act; bars deceptive claims about file segregation — including claims that it is legal — and prohibits the defendant from using or selling his customer lists.

In addition to the civil case brought by the FTC against Clifton W. Cross, on May 9, 2001, Cross was sentenced to forty nine months in federal incarceration and ordered to pay nearly $171,000 in restitution as part of a guilty plea resolving criminal charges stemming from the scam. The criminal case was prosecuted by the United States Attorney for the Western District of Texas.

The defendant used his Web site to claim he could help consumers obtain new credit histories by obtaining new identification numbers through a practice known as file segregation. The defendant sold instructions about how consumers could substitute federally-issued, nine-digit employee identification numbers or taxpayer identification numbers for social security numbers and use them illegally to build new credit profiles that would allow them to get credit they may be denied based on their real credit histories. Using “file segregation” to alter your credit history is a felony.

Settlement of the FTC charges bars the defendant from representing that other government identification numbers can be lawfully used to conceal actual credit histories or that using alternate numbers is legal.

In addition, the settlement bars him from misrepresenting material facts concerning credit-related products or any other product or service. The settlement also bars violations of the Credit Repair Organizations Act, which prohibits charging or accepting payment for credit repair services before the services are provided and advising consumers to hide their true credit history. The settlement also bars the defendant from using or selling his customer lists. Finally, the settlement contains record keeping provisions to allow the FTC to monitor compliance. A financial declaration filed by the defendant indicates an inability to provide redress for consumers. The settlement contains provisions to allow reopening of the issue if the defendant is found to have misrepresented his inability to pay. – Source

Before some CPN promoter tries to tell you it is totally legal for you to apply for credit using a CPN, consider this quote.

First, when was the last time you saw a credit form asking for your CPN? “Never” is the answer. Credit companies don’t ask for CPNs; they ask for SSNs. If you are asked for a social security number and you give a CPN or a number other than your social security number, you’re lying. Lying to get credit is a crime.

Second, companies that give credit check to find out if an SSN was actually issued, so in order for a number to be accepted as a social security number, it has to be in the range of numbers already issued. (Those companies also search the Social Security Death Index to find out if the Social Security Number belonged to someone who has died.) If you pick a CPN that has not been issued as an SSN (or one belonging to a dead guy), and use it when filling in the blanks on a credit application, the credit company’s computer will kick it out as an error. Because it isn’t a social security number, it won’t pass the creditors’ vetting. Using it in place of a Social Security Number to try to get something of value would still be fraud, though.

As an alternative to making up your own CPN from the pool of possible future SSNs, the ebook suggests applying for an EIN and using that as a CPN. I haven’t given a lot of thought to the legality of this, but, first, credit applications don’t ask for your EIN (so putting an EIN where an SSN is requested is a lie); and, second, any advice that includes: – Source

Look, just stay far away from these money wasting and illegal to use to apply for credit scams. The best way to get good credit is to just work on making the credit report you legally have, better, legally.

@GetOutOfDebtGuy

Photo Credit: Toasty Ken

Other Related Articles to Read

• Reader Wants a Refund From Lang Smith Who He Paid Advance Fees to For Credit Repair. No Refund Received.
• CPN and Dormant Social Security Numbers, Another Scam
• Is 720 Funding Really Offering Illegal Credit Repair and Bogus CPN Numbers?
• Deceptive Mailer – Housing & Economic Recovery Program (PL 110-289)
• FTC v. Michael Eltman, P.M. Enterprises
• New Jersey Says to Avoid Credit Repair Scams. Puts Out Interesting Video.
• Crackdown Hits 43 Phony Credit Firms That Turn Consumers into Felons
• How Can I Get Past This Bad Debt And On With My Life? – Amanda
• My Father Stole $25,000 From Me. – Drew

Read the full article at GetOutOfDebt.org, click here: CPN – Credit Profile Number / Credit Privacy Number – Craigslist Scam to Watch Out For

“Dear Steve,

I went through a divorce for about 1 1/2 yrs. and it was final in May 2009. We had our car repossessed in Jan 09, fell behind on credit card pmts (most all in my name) totalling approx $ 30,000.00 and now my home was foreclosed on by BOA, even though they admitted to giving me false information about a loan modification in which I had applied for!

Now I have to find a new place to live and I am a single 26yr old working mother of 1 child. How can I get passed this debt. I had always been responsible about my credit rating and payments to all of my debts, however I don’t have any help and it became impossible to manage all of this on my own.

I have a great stable job and want to get my life back. Is there anyway of getting some kind of money out of my foreclosure? I have owned the home since 2002. Now I am lookin g at $2000.00 for deposit on a lease home and won’t have any funds available until 1/1/10 (next pay period). Any advise or resources (that won’t cost me even more money that I don’t have) would be greatly appreciated. I am so tired of 50+ calls a day on my cell and at work. Please help!

Amanda”

The Answer:

Dear Amanda,

I understand things are tight but the way out is going to cost you some money to hire a bankruptcy attorney to represent you. Yes, I said it, bankruptcy.

I know your credit is important to you but the only legal way to silence the creditors and collectors quickly is going to be with the legal process of bankruptcy. Bankruptcy gives you rights and protections under the law. Under bankruptcy the creditors and collectors may not call you anymore and the debt will either be wiped out or a reasonable payment plan you can afford will be created.

Bankruptcy will give you a fresh start, a chance to rebuild your life, and the ability to have good credit again.

Click here to find a local bankruptcy attorney you like and make an appointment ASAP. You don’t have to go into the free appointment with any money, just go, talk to the attorney, and learn what bankruptcy would mean for you. I think you’ll walk away seeing how it is the best remedy for you in this difficult and stressful situation.

Big Hug!

@GetOutOfDebtGuy

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Other Related Articles to Read

• The Stress of My Debt is Killing Me. I Have a Chance to File Bankruptcy and Move to The Country to Start Over. – Michelle
• How Can I Get the Bill Collectors to Stop Calling Me? – Steve
• CPN – Credit Profile Number / Credit Privacy Number – Craigslist Scam to Watch Out For
• Deborah Wants to Write Letters to Creditors. But is That a Waste of Time?
• Should We Let Our Home Go and Start Over? – Jon
• My Father Stole $25,000 From Me. – Drew

Read the full article at GetOutOfDebt.org, click here: How Can I Get Past This Bad Debt And On With My Life? – Amanda

“Dear Steve,

I’m 28 years old, have a 17 month old son, sole provider currently (my girlfriend is in nursing school). I have $28,000 in credit card debt, $15,000 student loan debt with Sallie Mae, currently trying to sell my house since I am quickly becoming unable to pay my mortgage. I owe my mother $16,000, which I borrowed to pay off my divorce settlement with my exwife. I am in sales with a base salary of $40k plus commission, which means I’ll make about $50k this year, however, sales have slumped, so I cannot see making that next year.

I have absolutely no savings, my paycheck is essentially gone before I even get it (in other words living paycheck to paycheck). I let my Dad “borrow” a total of $25,000 over a period of about 4 years, I now know that I will never see that money again (he got the same from my brother, stole close to $100k from my mother, and “borrowed” more than that combined from his brother). We believe he owes the IRS, but have no way of knowing where all our money went, all we know is that we are all screwed and will never see it again. That’s the jist of it, I guess.

How can I possibly get out of this credit card debt? My Sallie Mae student loans are really a non-issue being that I have gotten that interest rate down to 1%. As far as paying my mother back, she is not putting any heat on me whatsoever, however, she needs it more than any one, she is 58 and has no retirement at all because my dad pissed everyone’s money away. Should I file bankruptcy and eliminate my credit card debt? I don’t really want to do that, however, I’m not sure if I really have a choice at this point. In my opinion, I need a “fresh start”. Any help you can give me will be greatly appreciated. Thank you for your time.

Drew”

The Answer:

Dear Drew,

I certainly understand your desire to avoid bankruptcy. The thought is admirable but unrealistic.

You are almost a classic bankruptcy case with debts beyond your control and facing a reduction in income.

Unless I’m dead wrong here it sounds to me that rather than climbing out of the debt hole you are slipping further down the slippery slope. I would not be surprised if you told me that much of the $28,000 of credit card debt was just to help makes ends meet and for routine stuff.

I think it is realistic to say that based on your income projections there is no reasonable expectation that you will be able to continue to service your debt or that we can expect your father to suddenly repay you what he owes. Sadly, this isn’t close the the first time I’ve heard about this kind of situation with a parent. Shit happens.

From this point forward I don’t think you should assume that bankruptcy is the only way out but I want you to go see a local bankruptcy attorney you like and discuss your situation. After an open and frank conversation I think the bankruptcy attorney will come to the same conclusion as I have.

The reason I do not want you to assume that bankruptcy is the only way out for you is simply because I want you to go to that bankruptcy appointment to learn and investigate, not just going through the motions. I need for you to be as fully informed as possible so you can see that this was the most logical and best route out of the jam you are in.

Hold your head up, make the appointment, and do what you’ve got to do.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Other Related Articles to Read

• My Credit Card Company is Threatening to Sue Me. What Action Will They Take? – Monica
• Husband Died. No 401K. No Life Insurance. Should I File Bankruptcy? – Patty
• I’m Moving Back With My Stepmother. Should I File Bankruptcy or Go With Credit Counseling? – Maya
• I’ve Been Thinking About Bankruptcy. – Bob
• Bankruptcy or Debt Reduction. What Should I Do? – Brenda
• Trisha is a Single Mom, Separated, and Facing Bankruptcy. What Should She Do?
• CPN – Credit Profile Number / Credit Privacy Number – Craigslist Scam to Watch Out For
• How Can I Get Past This Bad Debt And On With My Life? – Amanda
• Is Bankruptcy Right For Me?
• Misty Didn’t Have Health Insurance And Got Sick. Now The Bills Are Rolling In.

Read the full article at GetOutOfDebt.org, click here: My Father Stole $25,000 From Me. – Drew