There are several companies that offer credit repair services, some are legit and several are also scams. Credit repair companies started forming all across the country and so many of them started scamming people by charging enormous upfront fees for services that were never delivered. Some credit repair companies guaranteed to clean your credit in 30 days and desperate people would fall for the guarantee and pay large amounts of money before services began. After a while the Federal Trade Commission received thousands of complaints and consumer protection advocates created a law called the Credit Repair Organizations Act (CROA). The CROA now regulates how credit repair companies can legally operate through marketing as well as how the credit repair companies charge the customers.
Important Points of the Credit Repair Organizations Act
- One of the most important parts of the Credit Repair Organizations Act is that the credit repair companies CAN’T charge the customers UPFRONT for credit repair services. So if you decide to use a credit repair service beware of one that is trying to charge you before the services are performed.
- The second important part of the Credit Repair Organizations Act is that the Credit Repair Companies CAN’T guarantee that they can repair your credit. If the company advertises or mentions that they can guarantee credit repair they are not operating legally.
What about Credit Repair Attorneys?
An attorney or law firm is not covered by the Credit Repair Organizations Act because they are allowed to charge legal fees for answering legal questions, legal representation and producing and sending letters to the collection agencies and credit reporting bureaus. There are several law firms that can assist with credit repair however you can get the same results with our easy to use FREE Credit Repair Kit. Save yourself thousands of dollars in attorney fees and learn important information about how the credit reporting industry works. Go here to learn more about Credit Repair Attorneys.