Colorado Attorney General Ken Salazar announced Dec. 24 that his office obtained a judgment of nearly $1 million against an illegal "credit repair" business, Credit Corrections, LLC.

Credit Corrections, originally located in Westminster, Colo., was engaged in what is called "credit repair." It would contract with consumers and charge them a fee for "fixing" or "restoring" their bad credit reports.

The company did not comply, however, with the federal Credit Repair Organization Act, which is designed to protect consumers by issuing requirements of conduct for businesses engaged in credit repair. Among other things, this act:

1. Prohibits a credit repair business from collecting its fees in advance of completing its services (unless it is a duly registered not-for-profit company).

2. Requires that they provide the consumer a five-day right to cancel the contract.

3. Provides the consumer with additional notices and disclosures of their rights.

Consumers should know the following information about their credit:

* Negative credit information, if accurate, may remain on a credit report for seven years and then is automatically removed.

* Bankruptcy information remains on a credit report for ten years.

* Credit repair companies cannot legally provide a permanent fix to remove accurate credit information.

* Some companies advise consumers to use new social security numbers or employer identification numbers, but doing so is a federal crime.

* If erroneous information is listed on a credit report, consumers can correct the problem themselves at no charge by sending a written explanation to the consumer reporting agency and including copies of paid bills and identification information.

* Consumers have a right to order one free copy of their credit report each year in order to check their credit reports for errors. The three major credit reporting agencies are Experian, TransUnion and Equifax.

It's just good business to use credit wisely and to get a BBB reliability report on any company before giving them your money or your trust. In Natrona County call the BBB at (800) 564-0371 or go online at www.mountainstates.bbb.org.