New Brunswick Financial and Consumer Services Commission warns consumers about credit repair promises and upfront fees

The New Brunswick Financial and Consumer Services Commission has warned consumers about companies promising to improve credit scores or erase negative information from credit reports. Accurate information generally cannot be removed simply because it affects a credit score. Many services offered by credit repair companies are available to consumers for free, while rebuilding credit requires consistent payment habits over time rather than a quick fix. Credit repair companies are not regulated, approved, registered or licensed by the commission, but they must comply with provisions of the Credit Reporting Services Act. They cannot guarantee results or collect payment before making a material improvement to a consumer’s credit report or score. Consumers must receive 10 days to cancel an agreement after receiving it, and companies must provide a refund within 15 days if an agreement is cancelled. Consumers can obtain free credit reports from credit reporting agencies such as Equifax and TransUnion, check for errors or unfamiliar activity, and dispute incorrect or outdated information. Account, payment or collection errors can also be raised directly with the relevant lender, creditor or collection agency. Making minimum monthly payments, keeping credit use manageable and limiting unnecessary credit applications can help improve credit over time. The commission licenses and regulates credit reporting agencies, but does not correct credit files or repair credit for consumers.