We've already seen that CLEP tests are 100% legitimate and well respected, accepted at over 2,900 colleges across the U.S. (and even in select international colleges, from Tahiti to Thailand). There are, however, plenty of hoaxes out there.
These colleges are called "diploma mills" and are out to get your money and give nothing in return. Watch out for anything that is way too good to be true! These programs are usually claiming to give you credit for "life experience" or an easy online test.
A big red flag is if the school is unaccredited. Basically this means that they are not recognized by the U.S. Department of Education. Some unaccredited schools are completely legit, but many are nothing but scams. Here are a couple of links to help you find out if a college you're interested in is accredited:
There is actually an entire website dedicated to debunking these scams. Check out www.counterfeitdegrees.com