Home » Featured Areas » Protect Yourself From Credit Repair Scams
credit repair scam protection

Protect Yourself From Credit Repair Scams

The Credit Repair Organizations Act (CROA) ensures that companies offering credit repair services comply with specific rules. The Act requires that certain disclosures be made prior to signing a credit repair contract, that any contract be in writing and that a credit repair companies may not charge any fees prior to performing any work.

Who Is Regulated?

CROA applies to credit repair companies. These are companies that promise to improve a consumer’s credit report, credit history or credit rating.

When Does The Law Apply?

CROA requires credit repair companies to provide disclosures to consumers prior to signing a credit repair contract, allows for a 3-day right to cancel the contract and prohibits up front fees.

For Example:

  • If a company promises to improve a consumer’s credit score, it must provide the consumer with certain information about CROA and credit reporting prior to the consumer signing a contract for credit repair services.
  • If a consumer signs a credit repair service contract, that contract must include the option to cancel within 3 business days of signing.
  • If a company promises to improve a consumer’s credit score or credit history, it cannot charge any fee until it has performed work – no prepayment is allowed.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>