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  #1  
Old 03-25-2009, 03:10 AM
te2009 te2009 is offline
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EIN used as SSN scam

I was offered to provide software services to a company, which I later discovered they are selling a "credit repair" program. The program offers a "new SSN", and in fact, they issue an Employer Identification Number, which is used instead of the Social Security Number in application forms for credit.
I asume that is ilegal, but wanted to hear if anyone has heared of such scam.

The letter that they are sending looks like this:

The information that you are about to receive is shocking but it is 100% true and
100% legal. In fact, it is the exact same technique used by attorneys, doctors, and accountants. Have you ever heard of any of these types of professionals having any difficulty at all with obtaining any type of loan, mortgage, or credit card? Of course not.

Over the past several years we have perfected our Proven Program. It's a guaranteed way of legally getting an excellent credit rating almost instantly.
Here's how:
If you have bad credit you will simply go through our easy 5 step program to quickly get a new, legal, unblemished credit file and establish Excellent Credit. If you don't have bad credit, but want to make your existing credit EXCELLENT, we will go straight to Step 5.
  • 100% Legal
  • Works for Anyone
  • Used by Lawyers, Doctors, etc.
  • Obtain Mortgage, Auto Loans, etc.
  • Used by Thousands in the U.S.A.
  • Obtain Credit to Get Cash Instantly

The company name is: RLI, inc. and the address is:

24881 Alicia Pkwy. Laguna Hills, CA 92653


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  #2  
Old 03-25-2009, 08:27 AM
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katiescorner katiescorner is offline
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Re: EIN used as SSN scam

Everything Im finding says it's illegal. Here is the best explanation I've seen so far:

If the credit repair company advises you to create a new credit identity, they are giving you illegal advice. This practice is called "file segregation", and it is against the law. The credit repair company will likely direct you to obtain an Employer Identification Number (EIN) from the IRS. After you obtain the EIN, they will direct you to use it in place of your Social Security Number when applying for credit. EINs are designed to be used by businesses to report financial information to the IRS. Since it is illegal to obtain an EIN under false pretenses, you may face fines or even a jail sentence for obtaining the EIN. It is also illegal to provide false information on a credit application and to misrepresent your Social Security Number, so using the EIN in place of your Social Security Number could expose you to federal prosecution. If you provide the EIN over the telephone or through the mail, you could be prosecuted for wire or mail fraud. It could also expose you to civil fraud charges.

Full article here: http://www.essortment.com/lifestyle/...itrep_skst.htm



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  #3  
Old 03-25-2009, 09:18 AM
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BorisZ BorisZ is offline
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Re: EIN used as SSN scam

Any time company tries to convince you that what they are doing is "legal", chances are it is not.

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  #4  
Old 03-26-2009, 09:49 AM
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pinkyparrot pinkyparrot is offline
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Re: EIN used as SSN scam

Quote:
Originally Posted by BorisZ View Post
Any time company tries to convince you that what they are doing is "legal", chances are it is not.
Very good advice.
Why should they have to convince you that it is legal? If they do that, then you better watch your backside.

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  #5  
Old 03-30-2009, 01:42 AM
te2009 te2009 is offline
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Re: EIN used as SSN scam

Thanks to you all. Of course I have terminated any contact with these guys. They sent us their database via www.rapidshare.com , which I didn't even bother to download. Besides the ilegal product they are marketing, their campagne breaches most of the sections of the Can Spam act.

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  #6  
Old 12-21-2010, 02:59 PM
lisaaagent lisaaagent is offline
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Re: EIN used as SSN scam

Folks I create companies for a living. Tlhe practice this company is using isn't illegal, though it allows room for misconduct by you the user. The IRS allows you to select an EIN number that resembles a regular social security number. For example a normal EIN might look like 75-xxxxxxxxx
and a social security number might look like 251-xx-xxxx. Well, the IRS allows you to get business EINS that look like a social. Why? The reason is to allow politicians, and the wealthy to create companies that resemble the individual in every way. Let me give you an example. Let's say my name is Lisa Kanook and my social is 251-51-5555, and I'm rich. If I go around working, or buying items under my real social and get sued, I lose everything. Now, let's say I create a company called Lisa Kanook LLC. and get an EIN that's 251-15-6666. I can go buy cars, houses, apply for jobs (as long as I treat this as a business. I still report taxes etc. Now if the EIN & entity get sued, I keep all my personal stuff. It allows for separation. This is done all the time. However, if you do it with the intent (intent to defraud) you go to jail. Let's say you did this only to buy a bunch of stuff and file bankruptcy; then expect to visit a prison. Do it to recover, and protect yourself and start living life as a good steward and it's OK. Again, it's done all the time by those that rule us little people. Just be honest. This is intended as your once "get out of debt and start a new" card. You can only do this once. Good luck.


Last edited by lisaaagent : 12-21-2010 at 03:03 PM.
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  #7  
Old 12-21-2010, 03:27 PM
ProfHenryHiggins ProfHenryHiggins is offline
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Re: EIN used as SSN scam

No, Lisa, that practice is very illegal and the SSA says as much on their own site.

What you do and what the original poster was talking about are not the same thing. The OP was talking about a credit repair scam, not making a legitimate company.

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  #8  
Old 12-21-2010, 05:32 PM
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imwebmaster2 imwebmaster2 is offline
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Re: EIN used as SSN scam

There seems to be mixed opnions and misunderstandings here regarding the intent of an EIN versus the use of an EIN for personal credit repair.

I'm a seasoned business owner..over 38 years and have seen and heard all the scams from credit issues to offshore banking...

First, the bible on use of the EIN is clear ... it's used to seperate ones personal accounts from a "doing business as" or "assumed name", whether that be a sole proprietorship and LLC, PC, Inc., etc...it goes along with the intent to make a profit as another entity...not to hide behind for personal reasons...especially for personal credit repair.

The legal ruling allows for an individual to elect to use an EIN to establish another credit file...but under a assumed name or other business entity formed with intent to make a profit...be clear on this intent thing.

Now let me share with you a couple facts...let's say you do in fact file a dba...apply and receive your EIN...you open a bank account...get a debit card and maybe even a Orchard Prepaid Visa or Mastercard where you actually place some cash in the account...well, some of these prepaid credit card businesses do in fact report payments made on their cards

This allows for a credit file to be started on the entity...that's ok...
but go to your bank and try to get a loan under that assumed name and you will find out that the principal applying for the loan mst include their SSN on the application nowadays...and it's been like that for a long time too...so you will get caught up in a catch 22 any way you look at it...

This credit repair program is clearly a borderline fraud offer...the FTC would take interest in a company like that too...so would the IRS and the BBB...
maybe even your State Attorney General or Secretary of State...

However, let be made perfectly clear like one of the other posts indicated...he does business startups all the time and uses the EIN as standard practice...and he's right on...but again, it's for business startups and clearly with intent to make a profit...remember intent...

SO considering both sides of the coin here...YES...you can start a new credit file under an assumed name, etc, but NO...you don't set up an EIN to hide behind and dodge your credit liabilities...

The US Congress publishes every year a new tax code called the Internal Revenue Code..it's the guidelines for the independent contractor called the IRS to use as criteria for collection of taxes for wage earners, etc...

Ask the credit repair company to show you in the legislation where it allows you to use an EIN to dodge and hide behind your personal credit liabilities

I would be willing to lay a wager that the tax repair idiots making this offer also charge a nice fee to set you up for a legal fall that will land you in federal prison...

Turn that company in to the authorities....do it today

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  #9  
Old 12-22-2010, 01:33 AM
KristaJackson KristaJackson is offline
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Re: EIN used as SSN scam

If a credit repair company advises you to create a new credit identity,this will be an illegal advice. This practice is called "file segregation" and is against the law. credit repair company is probably used to obtain a Employer Identification Number (EIN) from the IRS.


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