Credit Repair Scams: How Ohio Consumers Can Spot And Stop Them

Many Ohio consumers are working to improve their credit scores, often after financial hardship, medical bills, job loss, or unexpected debt. This has created fertile ground for “credit repair” companies offering quick fixes, fast score boosts, or the promise to “erase” negative marks from your credit report. While some legitimate organizations offer budgeting assistance or credit counseling, many others are scams that take advantage of people who are simply trying to get back on their feet.

Understanding the difference is critical. And if you’ve already paid a company that failed to deliver what it promised, Ohio law may give you the right to recover your money.

What credit repair companies can (and cannot) do 

Under federal law, especially the Credit Repair Organizations Act (CROA), credit repair companies are not allowed to make deceptive claims. For example, they cannot:

• Guarantee a specific credit score increase
• Promise to remove accurate negative items from your report
• Charge upfront fees before performing any work
• Tell you to dispute every account or lie to credit bureaus

If a company promises to “wipe your credit clean” that is a major red flag. No one–not even an attorney–can legally remove accurate, verifiable negative information.

What legitimate credit repair assistance can do:

• Correct errors on your credit report
• Help you request documentation from lenders
• Assist in developing better debt-management habits
• Provide budgeting and financial education

If the negative information on your report is valid, only time and responsible financial habits can resolve it, not shortcuts or magic solutions.

Warning signs of a credit repair scam 

Ohio consumers should watch out for:

• Upfront payment requests before any services are provided
• Promises to delete accurate late payments, collections, or bankruptcies
• Claims of a “secret dispute method” or insider knowledge
• Instructions to dispute every account regardless of validity
• Advice to create a new identity or apply for an Employer Identification Number to replace your Social Security number

The last tactic is called file segregation. It is illegal and can expose consumers to criminal charges.

Ohio consumer protection laws offer strong remedies 

Ohio has a law called the Consumer Sales Practices Act (CSPA), and it’s there to protect people from being taken advantage of, especially by businesses that overpromise and underdeliver. If a credit repair company lies about what it can do, takes your money without doing the work, or just misleads you about the whole process, you might have more power than you think. In many cases, you could be eligible for:

• A full refund of what you paid
• Compensation if their actions caused you financial trouble
• Legal fees, if you had to hire an attorney
• Even triple the amount you lost–if it turns out the company knowingly acted in bad faith

These protections are tough by design. They’re meant to hold dishonest companies accountable and give people a fair shot at getting back on their feet when things go wrong.

Talk to a Dayton, OH, Consumer Protection Lawyer Today 

The Dayton consumer protection lawyers at Kohl & Cook Law Firm, LLC, represent the interests of consumers in consumer protection matters. Call our Dayton consumer lawyers today to schedule an appointment, and we can begin discussing your next steps right away.