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Credit Repair Organizations Act - Your Defense Against Scams
Don't be the victim of a scam! Know what credit repair organizations can and cannot do with your credit, and make an informed decision when deciding to use one.
Credit repair organizations have been popping up all over the place - in television and radio ads, in the Yellow Pages, and on the Internet. All of they sound like a great service because they often promise to remove negative information from your credit history. But Be warned - accurate information, both positive and negative, cannot be removed from your credit report. In fact, most information stays on your credit report for seven years, and bankruptcies can stay on your credit report for up to 10 years.
Victims of a Scam
The Credit Repair Organizations Act exists because many consumers have been the victims of a credit repair scam. If a credit repair organization states they can create a new credit identity for you, beware, It's against the law, and you could be prosecuted for fraud if you involve yourself. Some credit repair organizations may require payment up front before they do any work. This is a violation of the Credit Repair Organizations Act. The act specifically states that they cannot charge for a service before it has been completed. While some credit repair organizations may be honest businesses, you should know your rights before deciding to use their services.
Credit Repair Organization Services
They provide services you can do on your own for free.
You're probably wondering Why a credit repair organization charge you and what can do for you. Typically, they can:
- Get copies of your credit report.
- Send letters to the credit bureaus disputing inaccurate information.
- Attach a statement to your credit report which gives additional information on a specific issue.
While they charge a fee for this service, it can save you the hassles of doing it yourself.
Is This a Good Choice for You?
There are reasons to use the services of a reputable credit repair organization, and this may be a good choice for you if you:
- Don't want to bother researching your credit history and would rather someone do it for you.
- Don't have time to make phone calls or write letters necessary to correct inaccurate information.
- Are willing to pay for the service.
Read the Contract Carefully
If you decide to use a credit repair organization, you should know that the Credit Repair Organizations Act requires that you be given a contract before the services begin. After you've signed the contract, you have the right to cancel it within 3 business days. The contract should include:
- A description of the service.
- The fee for the service.
- The amount of time it will take to complete the service.
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As Featured In:
Program Features
- Lower monthly payments up to 57%
- Reduce monthly interest charges
- Consolidate your debts into one easy payment
- Pay off your debt faster
- Simplify your life worry less about money
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SignUp Requires
- Minimum $2,500 in unsecured debt.
- 2 or more accounts.
- A source of income.
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