You must be knowing all about those Credit Repair Organizations which promise to fix your credit score in just a little time. If you don’t, let me enlighten you.
Credit Repair Organizations are those companies which help you in increasing your credit score and removing the negative reports from your Credit Report (find the leading ones at https://creditrepairxp.com/credit-repair-companies/), these companies help you in fixing your Credit Report as you pay for their services. But who will save you from the Credit Repair Companies scam?
Let’s face it, not all credit repair companies are going to help you with your credit score and most of them would be just out there to dupe you, so the question is how can you protect yourself from such scams? This is where the Credit Report Organizations Act comes in between.
What is the Credit Report Organizations Act?
In 1996, the Congress passed a law which protects the consumers from the fraudulent credit repair companies which promise them the services which are actually prohibited by the law. So as the complaints by the consumers increased, the Congress decided to pass the Credit Report Organizations Act.
So what does this act entail? This law offers you the following protections:
- The credit repair organizations cannot dupe you by claiming to provide you with false services.
- The Credit Repair Company needs to provide its consumers with a written contract.
- Consumers have the right to cancel the contract within the first three days of signing.
- A credit repair organization cannot accept the fee before the services have been completed.
So, now since the consumers are protected by the law, they can be certain that a company is not a scam if the company follows the above 4 rules diligently. Moreover, these credit repair companies need to provide the consumer with a disclosure statement titled “Consumer Credit File Rights under State and Federal Law” before getting them to sign the contract.
This statement will help in consumers realizing their rights and would help them in better realizing if they are being duped or not. If a company doesn’t follow through the above-mentioned points, then the consumer has full right to sue the company and then the company will need to pay the price for the same.
So if you ever come across a scam company, you can file a lawsuit against that organization and the court would then order this company to return the money which you paid and in some cases might also order the organization to pay for your attorney charges.
How is it helpful to you?
This law has greatly benefited a lot of consumers which were previously duped by such companies and have given them hope that if a fraudulent company lures them into their trap, they can always file a lawsuit and get their money back. So now you can be sure and can check for a genuine company by making sure that it follows the CROA law and this way you can make sure that your credit repair is in the right hands.