Personal Tradelines charged upfront fees for unauthorized user schemes that violated Colorado law
Company made false claims about improving credit scores through "sharing" others' credit history
Settlement forces company to stop operating in Colorado and pay $20,000 in penalties
If you've been promised a quick credit score boost by being added as an "authorized user" on someone else's credit card, you need to know about a deceptive practice that just cost one company big time.
What happened in Colorado
On December 4, 2024, Colorado Attorney General Phil Weiser announced a settlement with PersonalTConsulting LLP, which operated as Personal Tradelines, for running an illegal credit repair scheme.
The Denver-based company was marketing "piggybacking" services to consumers desperate to improve their credit scores. Here's how the scam worked: They charged people upfront fees to add them as authorized users on credit card accounts belonging to strangers with better credit.
The company falsely advertised this as "one of the best methods for potentially improving your credit score" and claimed consumers could "share the credit history" of another person's account. But there was a catch – consumers were explicitly prohibited from actually using these accounts or contacting the account owners.
The red flags you should watch for
Personal Tradelines violated multiple consumer protection laws by charging advance fees, making misleading claims about results, and failing to provide required legal disclosures, Weiser said.
While this specific case happened in Colorado, similar credit repair scams operate nationwide. Here's what to watch out for:
The company promised unrealistic results and charged money upfront before delivering any services. They also failed to explain the risks and limitations of their approach.
How to protect yourself from credit repair scams
Never pay upfront fees for credit repair services – legitimate companies work on a pay-as-you-go basis
Be suspicious of any company promising to add you as an authorized user on strangers' accounts
Avoid services that claim you can "share" someone else's credit history
Research any credit repair company through your state attorney general's office before paying
Remember that anything a credit repair company can do legally, you can do yourself for free
Report suspected credit repair scams to your state attorney general and the Federal Trade Commission
What this means for consumers nationwide
While Personal Tradelines specifically violated Colorado's Credit Services Organization Act, similar laws exist in most states to protect consumers from predatory credit repair practices.
The "piggybacking" practice itself isn't necessarily illegal, but charging upfront fees and making false promises about results violates consumer protection laws across the country.
If you've been harmed by a credit repair company, you can file complaints with both your state attorney general's office and the Consumer Financial Protection Bureau.
The bottom line: Credit repair scams prey on people's desperation to improve their financial situation. This Colorado settlement should serve as a warning – if a company demands upfront payment for vague promises about boosting your credit score, walk away. Legitimate credit improvement takes time and doesn't require paying strangers to add you to their accounts.