Finance
“Clear Path Solutions' credit repair services can remove collections, charge-offs, bankruptcies, repossessions, foreclosures, medical bills, and student loans from credit reports, with results beginning in 30-45 days and backed by a 90-day money-back guarantee." (Instagram, @clearpathkarim, published 2026-09-08)”
Plain restatementA US credit repair company advertises that it can delete named categories of negative items, including bankruptcies, foreclosures, medical bills and student loans, from consumer credit reports, that results can begin within 30 to 45 days, and that the service is risk-free because of a 90-day refund guarantee.
Distortion codes this site does not recognise yet: guaranteed_return, proposal_vs_enacted. Not collectible until the field guide has an entry.
This Instagram ad claims a credit repair company can remove collections, charge-offs, bankruptcies, repossessions, foreclosures, medical bills and student loans from credit reports, with results in 30 to 45 days and a 90-day money-back guarantee. The claim as worded is false. The Federal Trade Commission states that credit repair companies cannot legally remove negative information that is accurate and up to date, and that offers to clear all negative items are a scam marker. A bankruptcy is a court record that the Fair Credit Reporting Act allows to be reported for up to ten years, so it cannot simply be deleted if it is accurate. The company's own website is narrower than the ad, describing the work as disputing and removing inaccurate items, which is lawful; the ad drops that condition and lists the item categories with no qualifier. The 614 to 720 score jump shown in the graphic is an example image, not a documented client result, and the FTC has previously acted against a firm for promising a 100 to 120 point gain in a few weeks. What remains unverified here is this specific firm's pricing, whether it charges any fee before work is completed, whether refunds are honoured, and whether it has any regulator or complaint record. Consumers can obtain free credit reports and dispute errors directly with the bureaus at no cost. General information only, not financial advice.
[drifted from the evidence:] Clear Path Solutions' credit repair [drifted from the evidence:] services can [drifted from the evidence:] remove collections, charge-offs, bankruptcies, [drifted from the evidence:] repossessions, foreclosures, medical bills, and student loans from credit reports, [drifted from the evidence:] with results [drifted from the evidence:] beginning in 30-45 days and [drifted from the evidence:] backed by a 90-day [drifted from the evidence:] money-back guarantee." [drifted from the evidence:] (Instagram, @clearpathkarim, published 2026-09-08)
[added by the neutral restatement:] A US credit repair [added by the neutral restatement:] company advertises that it can [added by the neutral restatement:] delete named categories of negative items, including bankruptcies, foreclosures, medical bills and student loans, from [added by the neutral restatement:] consumer credit reports, [added by the neutral restatement:] that results [added by the neutral restatement:] can begin within 30 to 45 days, and [added by the neutral restatement:] that the service is risk-free because of a 90-day [added by the neutral restatement:] refund guarantee.
Red-tinted words in the claim drifted from the evidence. Green-tinted words are what a neutral restatement needs.
The trace / claim to source
- The business exists and the advertised guarantee is genuinely advertised. The company's own about page carries a 90-Day Money-Back Guarantee described as risk-free credit repair or your money back. Whether refunds are actually paid is a separate, unverified question.
- A real legal mechanism sits underneath the pitch. Consumers have FCRA dispute rights, and credit repair companies can be hired to help investigate mistakes on credit reports. Items that are inaccurate, unverifiable or past their reporting period can be deleted through that process.
- The company's website scopes its promise correctly, to inaccurate items. That is a lawful description of the service.
- Some medical collections genuinely have come off reports, by bureau policy: balances under $500 as of April 2023 and paid-in-full medical collections as of 2022-07-01.
- A 30 to 45 day timeframe is a plausible description of how long a dispute cycle takes, though that is a processing window and not a result.
- Guaranteed return: the post sells a risk-free, guaranteed outcome for a process whose outcome no provider controls, since the bureaus and furnishers decide each dispute. The FTC has alleged that a specific promised score gain over a specific short window was a result the company could not possibly guarantee or reliably deliver, and a "100 percent money-back guarantee" featured in an FTC complaint as part of an overstated pitch rather than as a consumer protection.
- Omitted qualifier: the accuracy condition is dropped. The website says inaccurate items; the post lists item categories with checkmarks and no qualifier, so a reader understands the categories themselves to be removable. Credit repair companies cannot legally remove negative information that is correct and up to date, which is the single condition that decides whether any of the listed items can go.
- Exaggeration: bankruptcies, foreclosures and student loans are presented as removable classes. A bankruptcy is a court judgment, and the FCRA permits it to be reported for 10 years from the date of the court's decision. An accurately reported federal student loan default or a real foreclosure is in the same position. Disputing accurate records of this kind is the shape the FTC identifies as the scam: the only people who will ever offer to remove all the negative details from a credit report are scammers.
- Proposal vs enacted: listing medical bills as removable trades on a change that is not in force. The CFPB rule that would have barred medical debt from credit reports was vacated on 2025-07-11 as exceeding the Bureau's authority. The under-$500 and paid-in-full removals that did occur were the bureaus' own voluntary action, achieved without any paid dispute service.
- Illustrative result presented as proof: the creative displays a 614 to 720 jump, +106 points "since last month," which per the intake OCR is an example graphic rather than a documented client case. An unlabelled mockup adjacent to a list of promised deletions and a refund guarantee functions as an implied performance record.
- Value overstatement by omission: the post does not mention that anything a credit repair company can do legally, a consumer can do for themselves for little or no cost, nor the statutory consumer rights a seller must disclose, including a three day right to cancel without charge, the total cost, how long results will take, and any guarantees.
- Whether this firm charges any fee before services are fully performed. That would matter because CROA bars a credit repair organization from receiving money for a service before that service is fully performed, and Arizona's statute contains a parallel bar. I retrieved no pricing or contract document, so I make no finding on it.
- Whether the firm has any regulator action, state bond filing, or complaint record. A targeted search on this point was not completed within the session's search budget, so treat the absence of a finding as absence of evidence, not as a clean record.
- Whether refunds under the 90-day guarantee are actually honoured, and what conditions attach. No terms document was retrieved.
- The firm's actual client outcomes. Website testimonials and social screenshots are never evidence of results and were not treated as evidence here.
- Whether the "medical bills and student loans" wording in the intake claim text appears in the firm's own marketing. The caption recorded at intake lists collections, charge-offs, repossessions, late payments and bankruptcies, so those two categories are not corroborated by the caption text itself.
The federal regulator with jurisdiction over this activity states the limit directly. Per the FTC, credit repair companies cannot remove negative information that is accurate and current from a credit report, and anything a credit repair company can do legally, a consumer can do for themselves for little or no cost. The FTC's January 2026 alert repeats it: it is illegal for credit repair companies to lie about what they can do, to charge before they help, or to ask a consumer to lie on credit applications, and credit repair companies also cannot legally remove negative information from a credit report that is correct and up to date. The FTC's topic page describes the scam shape in the same terms: these operations lure consumers by falsely claiming they will remove negative information from credit reports even if that information is accurate, and the FTC has brought scores of enforcement actions against such services. The governing statute, CROA, makes two things unlawful that bear on this offer. It prohibits a credit repair organization from making any statement which is untrue or misleading, or which upon the exercise of reasonable care should be known to be untrue or misleading, with respect to any consumer's credit worthiness, credit standing, or credit capacity to any consumer reporting agency, and it provides that no credit repair organization may charge or receive any money or other valuable consideration for the performance of any service it has agreed to perform before such service is fully performed. Arizona's own credit services organization statute contains a parallel advance-fee prohibition covering persons who represent they can improve a buyer's credit record, history or rating. On the specific categories named: bankruptcy is a court record. Under the Fair Credit Reporting Act, a credit reporting agency may report a bankruptcy for 10 years from the date of a court's decision or judgment, and the bankruptcy court itself notes that credit reporting agencies may report a bankruptcy case for up to ten years under 15 U.S.C. 1681c. On medical bills, the rule that would have stripped them from reports is not in force: on 2025-07-11 the US District Court for the Eastern District of Texas vacated the CFPB's Regulation V medical information rule, agreeing with the Bureau and plaintiffs that the rule exceeded the Bureau's statutory authority. Separately and voluntarily, the three nationwide bureaus announced on 2023-04-11 that medical collection debt with an initial reported balance under $500 had been removed from US consumer credit reports, following their earlier removal of paid-in-full medical collections as of 2022-07-01. Those removals happen by bureau policy, not by any paid intermediary's dispute work. On the score-jump and speed framing, the FTC has enforced against exactly this pattern. In the BMS matter, the FTC said the company promised credit scores would increase by 100 to 120 points over two to six weeks, a result it could not possibly guarantee or reliably deliver, and also charged upfront fees, which is against the law. In a 2008 action, the FTC's complaint alleged the operator offered a "100 percent money-back guarantee" alongside overstated promises, indicating a refund guarantee is a familiar feature of enforced-against offers rather than a mark of legitimacy. The FTC has also said plainly that the only people who will ever offer to remove all the negative details from a credit report are scammers, and its 2019 guidance states the first rule of credit repair is that no credit repair company can remove accurate and timely negative information from someone's credit report. The seller's own website is narrower than the Instagram post. The homepage says the firm will identify, dispute and remove inaccurate items from a credit report, and the about page carries the 90-Day Money-Back Guarantee framed as "Risk-free credit repair, or your money back". The accuracy qualifier that appears on the website is absent from the post's category list.
Complete reasoning
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Ask this case
Answers come only from the case file above; nothing is added.
Can Clear Path Solutions actually remove things like bankruptcies and foreclosures from a credit report?
Not if the information is accurate. The FTC states credit repair companies cannot legally remove negative information that is correct and up to date, and a bankruptcy can be reported for up to 10 years under the Fair Credit Reporting Act, so it cannot simply be deleted if it is accurate.
What about the claim on medical bills and student loans?
The court rule that would have removed medical information from reports was vacated in July 2025. Some medical debt has come off reports, but that happened through voluntary bureau policy changes, such as removing balances under $500 or paid-in-full collections, not through a paid company's dispute work.
Is the 90-day money-back guarantee real?
The company's own website does advertise a 90-Day Money-Back Guarantee describing the service as risk-free. Whether refunds are actually honored in practice was not established by this investigation.
Does the company's own website match what the Instagram ad says?
No. The website describes the service more narrowly, as identifying, disputing, and removing inaccurate items, which is a lawful description. The Instagram post drops that accuracy condition and lists whole categories of negative items as removable with no qualifier.
What don't we know about this specific company?
The investigation did not establish this firm's pricing, whether it charges any fee before work is completed, whether refunds are actually paid out, or whether it has any regulator or complaint record.