Credit Report / Credit Score

Why Are You a Sheep and Publishing False Information About Credit Privacy Numbers? I’m Going to Get You.

Written by Steve Rhode

Question:

Dear Steve,

Why are you writing false information about that group and using that douchebag for all your information??

This is the problem your a sheep like everyone else you dont truly do your homework just let someone else feed it to your.

YOU my friend are bullshit im just giving you the heads up before i completely shut down your website….NO you cannot stop me YES im doing it for fun enjoy

Bobby

Answer:

Dear Bobby,

Clearly, you are upset. But at what, I’m not sure.

My recent posts that involved a Facebook ground, surrounded the marketing of CPNs, also known as “credit profile numbers,” “credit privacy numbers,” or “credit protection numbers.” It is an old approach that used to be known as file segregation until someone came up with the CPN name.

Warnings about such practices go back decades. As I showed in my articles people who sell, buy and use CPN to build new credit are engaged in illegal activity that can land them with a criminal complaint and jail time.

So I’m not clear on what in my articles was sheepish, bullshit, or douchey.

When it comes to authoritative resources regarding using numbers in place of your valid Social Security Number, Facebook, Pinterest, Instagram, and Twitter are not reliable sources.

I prefer to trust sources like:

Federal Reserve Bank of St. Louis

“So, ads promising a new credit identity and fresh start are enticing. Some credit repair companies provide this new identity in two very questionable ways: by requesting an employee identification number (EIN) from the Internal Revenue Service (IRS), or by selling the consumer a credit profile, credit privacy or credit protection number (CPN) for use in place of the individual’s social security number (SSN) when applying for credit. Consumers need to know that providing a number other than an SSN on a credit application in the allocated space is illegal and can result in criminal prosecution.

CPN schemes are illegal. Those who purchase a CPN and use it to establish a clean credit file are committing several crimes, including identity theft and making false statements on a loan or credit application.” (2011) – Source

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Federal Trade Commission

“Companies promising a “new credit identity” say they can help you hide bad credit history or bankruptcy for a fee. If you pay them, these companies will provide you with a nine-digit number that looks like a Social Security number. They may call it a CPN — a credit profile number or a credit privacy number. Or, they may direct you to apply for an EIN — an Employer Identification Number — from the Internal Revenue Service (IRS). EIN’s are legitimate numbers, typically used by businesses to report financial information to the IRS and Social Security Administration — but an EIN is not a substitute for your Social Security number.

The credit repair companies may tell you to apply for credit using the CPN or EIN, rather than your own Social Security number. And they may lie and tell you that this process is legal. But it’s a scam. These companies may be selling stolen Social Security numbers, often those taken from children. By using a stolen number as your own, the con artists will have involved you in identity theft.

If you follow a credit repair company’s advice and commit fraud, you might find yourself in legal trouble. It’s a federal crime to:

  • lie on a credit or loan application
  • misrepresent your Social Security number
  • obtain an EIN from the IRS under false pretenses

The bottom line is that if you use the number they sell you, you could face fines or time in prison.” – Source

FederalBureau of Investigation

This quote comes from nearly two decades ago in 2000.

“Sometimes called “file segregation,” these schemes are pitched over the Internet and e-mail to consumers with poor credit histories. They lure consumers into breaking the law by creating fake credit histories with substitutes for their genuine social security numbers. Consumers pay fees as high as hundreds of dollars to the so-called credit repair companies. They are then instructed to apply to the IRS for a taxpayer or employee identification number, which is then substituted for their nine-digit social security number. Thus, the credit repair scams actually turn gullible consumers into criminals by advising them to use false identification numbers to apply for credit.” – Source

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United State Department of Justice

This concerns effort from 1998. The DOJ had this to say:

“CROA also prohibits requiring advance payments for promised services. 15 U.S.C. § 1679b(b). Thus, credit repair organizations cannot lawfully promise to “repair credit” and collect money for their services before accomplishing that goal.

CROA also prohibits “file segregation” schemes, which are advertised as a way of creating a new credit identity. File segregation operators advise the consumer to apply to the Internal Revenue Service (“IRS”) for an Employer Identification Number (“EIN”). Consumers are told to use the EIN in lieu of their Social Security Number when applying for credit in order to create a completely new credit file in which the old debts will not appear. The scheme essentially involves an attempt to hide one’s identity from creditors by getting credit with the EIN and a name and address that differ slightly from accurate identifiers.

Both the person selling such a scheme and consumers who follow the scheme are violating the law. CROA bars any person from making or counseling any consumer to make any untrue or misleading statement the intended effect of which is to alter the consumer’s identification in an effort to hide accurate credit information. 15 U.S.C. § 1679b(a)(2). Consumers following such advice may be committing felonies. See 42 U.S.C. § 408(a)(7)(B)(falsely representing a number to be the social security account number); 18 U.S.C. § 1014 (false statement on credit application).In 1999, CPB brought a series of cases seeking injunctions and civil penalties against businesses that offered “file segregation” schemes.” – Source

I Could Go On

I could go on but I’m more interested in what you feel is in error or untrue in the articles I believe you are talking about, here and here.

Please respond by posting in the comments section below.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

4 Comments

      • These groups are not only selling CPNs, but are advertising forging documents, adding tradelines and authorized users to obtain credit fraudulently. One user even suggested obtaining the CPN, inflating the score, using the credit, transferring the money into a seperate bank account, filing bankruptcy on the CPN, then “rinse and repeat”. How is this not fraudulent? I’m sorry, but this poster is putting themselves on the regulator’s radar by taking this stance. It is flat wrong and all of it is being exposed. Along with the players involved.

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