What Is The Credit Report Organizations Act?

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.

Are you dragging your debts around you

Are you really struggling with debts? confused what to do, then IVA advice is the solution to your problem. When you are already in debt you are least bothered in paying the upfront fees, you want a friendly advice so, in this case, what do you do? Hence the reason, IVA advice is the best solution for you as they follow the government legislation in giving you every IVA advice. To get the IVA advice, you do not have to worry of paying the upfront fee or any kind of taxes. You can get your free IVA advice with the help of any expert who is ready to listen to your debt problem and help you in getting out of debt.


First of all, IVA advice is easy to understand it is a timely and step by step process. IVA advice is available for people with different levels of financial difficulty. With them there is no objection financial advice which is given selflessly to those that are in desperate need of getting rid of their debts. First of all, they want their clients to compile information about their debts, for example, they want to know of every detail on the debts owed to individual, companies etc. They also require the paper work related to the debts, for example letters from bailiff, or the creditor, bank etc. They recommend to file each and every paper work and specially the recent correspondence as it helps in tracking new information and getting updated on the current status of the debt. In any case, there are court papers received from the court regarding settling the debt than the help from professional is must as they will guide you in responding to the court likewise.

After the compilation of all the debt papers, have a priority list, as it is extremely important. Mark the letters of correspondence, and separate them into the category of low risk and high risk pile. Place the high risk file separately, as it will help you to prioritise and correspond with those creditors that are threatening to send bailiffs your way. Non-priority or low risk letters can always be dealt with. It is also extremely important, to underline the important statements made in the letters that are sent to you, because you can understand the level of seriousness of that correspondence to you.