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Typically, companies offering credit repair and or credit file segregation, claim they can assist with either clearing ones credit report of negative information, or setting up a seperate file for clients free of past negative credit information. Be aware that although this may sound like a tempting offer, consider the consequenses prior to signing contracts or paying fees. It is illegal to create a new file soley to avoid past credit problems. As a result of assuming a new credit identity, you may face losing any previously paid social security benefits. Also, it is a felony to falsify credit information and you could risk scrutiny by the IRS for tax evasion. Also, negative information deemed accurate stays on credit reports for 7 to 10 years and can only be removed with the cooperation of the creditor. California law requires companies advertising to clear credit or assist in obtaining loans, to register with the Attorney General's office and post a $100,000 bond. To verify registration contact the Attorney General at 619 645 2001.