Credit Repair Organizations Act
The Law for Credit Repair Companies
Credit repair companies need to adhere to the Credit Repair Organization’s Act (CROA) and we thought we should help consumers to understand it. Here is a summary of the important parts of the CROA that you will need to understand.
What is the Purpose?
There are 2 main purposes for the CROA.
- To ensure that prospective buyers of the services of credit repair organizations are provided with the information necessary to make an informed decision regarding the purchase of such services
- To protect the public from unfair or deceptive advertising and business practices by credit repair organizations
What is Prohibited?
The most important thing to know here is that you should not make any payments in advance.
Disclosures and Contracts
Each credit repair company is required to send you a copy of your Consumer Credit File Rights. Read these carefully! You may also cancel your contract within 3 days without any penalty. Be sure to check the contract and make sure the credit repair company is;
- Listing Payment Terms
- Describing, in detail, the services offered
- Check for Guarantees
- Estimated time of completion
Read the Credit Repair Organization’s Act
Tags: credit repair companies, credit repair company, credit repair organizations, Credit Repair Organizations Act, CROA
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