FTC Credit Repair Scams: Avoid Fraud & Protect Your Credit

If you searched for FTC credit repair news, you may have seen the headline about Credit Glory.

On August 10, 2026, the Federal Trade Commission announced that a federal court had temporarily halted a credit repair operation involving 17 related companies and five principals. The FTC says the operation took nearly $200 million from consumers since 2016.

The court’s temporary restraining order included an asset freeze and appointed a temporary receiver.

That is serious news. But it is also important to use accurate language.

The FTC has made allegations. The temporary restraining order is not a final judgment. The defendants have not been found guilty simply because the case was filed or because the court entered temporary relief. The case is pending, and the court will decide the claims.

The practical lesson for you is clear:

Before you pay anyone to help dispute a credit report, slow down and check the offer.

You should know exactly who you are dealing with, what they promise, what you will pay, and what you can do yourself.

What the FTC alleges in the Credit Glory case

According to the FTC’s announcement, the government alleges that the Credit Glory network:

• Made false or misleading promises about improving credit scores.
• Promised to remove negative information from credit reports.
• Impersonated debt collectors and creditors.
• Collected illegal upfront fees.
• Enrolled consumers in recurring charges without proper informed consent.
• Used deceptive subscription practices.

The FTC also alleges that consumers were sometimes led to believe they were contacting a legitimate collector or creditor when they were actually being directed to a credit repair sales operation.

The court’s temporary restraining order temporarily restrained the alleged conduct, froze assets, and placed the covered entities under a temporary receivership.

The FTC’s complaint explains the government’s allegations in detail. It also makes clear that the case must still be decided by the court.

What this means for you

You do not need to understand every page of a federal complaint to protect yourself.

You need a short process:

1. Identify the company.
2. Test the promises.
3. Add up the full cost.
4. Read the contract and cancellation terms.
5. Keep control of your information and next steps.

That process works whether you are considering a large credit repair service, a local provider, a subscription tool, or any other service that says it can help you dispute your credit report.

What CROA actually forbids

The Credit Repair Organizations Act, or CROA, was created to protect consumers from unfair and deceptive credit repair practices.

It does not mean every credit education company is illegal. It does not mean every dispute service is a scam. It does mean that companies selling credit repair services must follow specific rules.

Here are the most important protections to understand.

1. Companies generally cannot charge credit repair fees upfront

CROA prohibits a credit repair organization from charging or receiving payment for a service before that service is fully performed.

That matters because some offers make you pay a large enrollment fee before the company has done what it promised.

A small “verification” charge can also deserve attention. Ask:

• What exactly is this charge for?
• Is it a one-time charge?
• Will another fee follow?
• When will the promised service actually be completed?
• Is the company charging for work that has not yet been performed?

The FTC’s Credit Glory complaint alleges that consumers were charged upfront fees before the alleged credit repair services were fully performed.

A company may describe a payment as a setup fee, review fee, enrollment fee, or first-month fee. The label does not answer the legal question. You should understand what you are paying for and when the related service will be completed.

2. Companies cannot make untrue or misleading promises

CROA prohibits untrue or misleading representations about a credit repair organization’s services.

That includes promises that a company can:

• Guarantee a specific credit score.
• Guarantee that a collection will be removed.
• Permanently delete accurate negative information.
• Fix your credit in a set number of days.
• Use a secret method that works for everyone.
• Remove information simply because it hurts your score.

No legitimate service can promise a particular outcome for every credit report.

An item that is inaccurate, incomplete, outdated, or unverifiable may be disputable. Accurate information generally cannot be removed just because it is negative. A dispute should be based on a real, supportable issue.

The FTC alleges that the Credit Glory operation promised significant score improvements and permanent removal of negative information. If those allegations are proven, they would raise serious consumer protection concerns.

3. Companies cannot use deception or impersonate collectors

CROA prohibits deceptive conduct connected to the sale of credit repair services.

The FTC also alleges that Credit Glory telemarketers sometimes made consumers believe they were contacting a debt collector or creditor.

That is a major warning sign.

A credit repair service is not your creditor. It is not the debt collector reporting the account. It should not pretend to be either one.

Before sharing personal or payment information, ask:

• What is the company’s legal name?
• Am I speaking with the creditor, the collector, or a separate service?
• Why did I reach this company?
• Is the company clearly telling me what it does?
• Can I verify its contact information independently?

If a caller avoids answering those questions, end the conversation.

4. Recurring charges must be clear and authorized

Surprise subscriptions create a different kind of risk.

CROA requires credit repair contracts to disclose payment terms. Other consumer protection laws and rules may also apply to recurring billing, negative-option programs, electronic fund transfers, and online subscriptions.

The FTC alleges that consumers in the Credit Glory case were enrolled in recurring charges without clear disclosure or express informed consent.

Before entering your card or bank information, find:

• The exact recurring amount.
• The billing date.
• The total expected cost.
• The number of billing cycles.
• The cancellation method.
• Whether cancellation must be completed by phone, email, or online.
• Whether a separate monitoring or software charge is included.

Do not rely on a salesperson’s statement that “you will only be charged for a few months.” Find that term in the written agreement.

Use this five-point checklist before paying anyone

You can use this checklist before paying any credit repair company, consultant, app, subscription, or dispute service.

1. Check the company before you check out

Start with the company itself.

Look for a physical business address, a working support channel, clear terms, and a privacy policy. Search the company name with words such as “complaint,” “lawsuit,” “refund,” and “subscription.”

Do not assume a polished website proves that a company is trustworthy. Paid advertisements can appear above official websites and search results.

If an ad appears when you search for a creditor or debt collector, check the website address carefully. Confirm that you are on the creditor’s actual site before calling a number.

Your action: Write down the legal business name and verify the contact information independently.

2. Reject guaranteed scores and guaranteed removals

A trustworthy service should explain what it can do, what you must do, and what results depend on the credit bureaus, furnishers, and your individual records.

Be cautious if someone promises:

• A specific number of points.
• A clean report.
• Removal of every collection.
• Approval for a mortgage or auto loan.
• Results within a guaranteed timeframe.
• A permanent fix for all negative information.

Actual outcomes vary. A dispute may lead to a correction, no change, or a request for more information. A credit score may also change for reasons unrelated to a dispute.

Your action: Ask, “What happens if the information is accurate?” The answer should be clear: accurate information cannot simply be deleted because you dislike it.

3. Calculate the full cost before you agree

Do not stop at the first fee mentioned.

Add together:

• Enrollment or setup charges.
• Monthly service fees.
• Credit monitoring fees.
• Software fees.
• Per-letter charges.
• Cancellation fees.
• Fees charged by related companies.
• Any renewal or annual charges.

Ask for the total expected cost in writing.

A low first payment can hide a much larger commitment. A “free review” can lead to a paid subscription if the terms are not clear.

Your action: Take a screenshot or save the pricing page and contract before submitting payment information.

4. Read the contract and cancellation instructions

CROA requires a written, dated contract with key information, including payment terms, a detailed description of services, the estimated time needed, and a notice about your right to cancel within the required period.

Read the agreement before signing. Do not let a salesperson rush you through an electronic signature.

Look for:

• The exact services promised.
• The company’s legal name and address.
• Total payment terms.
• Any performance claims.
• Cancellation instructions.
• Automatic renewal language.
• Refund restrictions.
• Separate companies named in the agreement.

If the salesperson’s promises do not appear in the contract, ask why.

Your action: Save the contract, receipts, emails, and screenshots in one folder.

5. Keep control of your information and your disputes

You should know what is being sent to each credit bureau and why.

Never agree to submit an identity theft report if you were not a victim of identity theft. Never approve a dispute that claims an account is not yours when you know it is yours. Never sign a statement you have not read.

You can learn how to dispute a credit report yourself by reviewing the report, identifying specific inaccuracies, gathering supporting documents, and sending a factual dispute to the appropriate company.

A service should not pressure you to make an untrue statement to get a faster result.

Your action: Review every letter before it is sent. Keep copies of what you submitted and when you submitted it.

Education-first credit repair keeps you in control

You do not have to choose between doing everything alone and handing over your money, passwords, and decisions to a company.

An education-first approach gives you tools and guidance while you remain the person making the decisions.

That can include:

• A report review that helps you identify possible errors.
• A prioritized action plan.
• Attorney-reviewed dispute letter templates.
• Simple instructions for completing each letter.
• A deadline tracker.
• Guidance on what documents to attach.
• A place to ask questions when you get stuck.

The key difference is transparency.

You see the information. You choose what to dispute. You review the letter. You send it yourself. You track the response.

That structure cannot guarantee that a credit bureau or furnisher will change an account. It can help you avoid unsupported disputes, understand the process, and take organized action.

BadCreditMentor is built around that self-serve model. The platform provides educational guidance, templates, tools, and AI support. You do not need to schedule a sales call or wait for someone to take over your account.

What a safe first step looks like

Start with the facts on your report.

Do not start with a promise that a collection will disappear. Start by asking:

• Is the account mine?
• Is the balance correct?
• Are the dates accurate?
• Is the account duplicated?
• Is the payment history complete?
• Do the records support what is being reported?
• What documentation do I have?

Then choose one clear next step.

That might mean requesting your reports, organizing account documents, disputing a specific error, contacting a furnisher, or creating a plan to reduce balances and make on-time payments.

Small, documented actions are easier to review than a rushed dispute sent to every bureau at once.

Get a free AI credit audit before you pay for credit repair

You can review your situation without a sales call, credit pull, or payment card.

The free AI credit audit asks a few questions about your credit profile and goals. It then gives you a personalized starting plan based on the information you provide.

You can use it to see:

• Which credit issue deserves attention first.
• Whether collections, late payments, or high balances are affecting your plan.
• What information to gather before disputing.
• What your next 30 days could look like.
• Which steps you can take yourself.

Start free. No card required. No pressure to upgrade.

Get the free starter kit next

Want help writing your first letter?

Get the free starter kit with attorney-reviewed dispute letter templates and a simple sequence for reviewing your report, identifying a possible error, and preparing your next action.

You do the sending. You keep control. You decide what is accurate and what needs to be questioned.

Start with the facts. Read every fee. Reject guarantees. Save every document.

That is how you protect yourself before paying anyone for credit help.

FTC disclaimer: The Federal Trade Commission does not endorse BadCreditMentor or any other particular company. This article is for general educational purposes only and is not legal advice. The FTC allegations discussed here have not been finally decided by the court. Results from credit education or dispute activity vary and are not guaranteed.

Sources and further reading

• FTC announcement about the Credit Glory temporary restraining order
• FTC Credit Glory case page
• FTC complaint
• Temporary restraining order
• FTC ReportFraud.gov