Credit Repair Services and How to Deal With Them
In times of financial crisis if you are stricken with bad credit you need credit repair to be done. And the first step you is approaching a professional service as you are not equipped to deal with the bureaus and agencies yourself. But you need to know a few things about the services as they are not all very honest in their dealings and you could land up in a sticky situation.
There have been instances of services tricking customers and misleading them about their legal rights to make them lose their hard earned money. To prevent such service organizations from fraudulent dealings, The Credit Repair Organization Act was brought about to arm consumers with information on their legal rights and about how to choose and pay for credit repair services.
Organizations that repair credit cannot provide consultancy with the aim to make you provide false information on the history of your credit to creditors. They cannot change your identity by getting a brand new employer identification number to reshape your credit record. They cannot ask for payment unless they have provided you with the services they promised and misrepresent you in any way.
Under federal law, credit repair services are required to disclose fully about obtaining credit reports called the Consumer Credit File Rights under State and Federal Law. You can sue them if they violate the law. The contract that they are required to sign with you providing three business days for cancellation if required, should also contain the amount of payment and the services that they would offer. It should also contain an estimated time frame for completion of their repair service as well as a clear statement that also provides you with the option of cancellation free of cost.
The contract should carry a cancellation notice in the shape of a form that you can use to cancel the service within 3 business days if you want. For waivers of any rights under the law, CROA, they cannot make you sign a contract as it would be void. In the event of violation of the law, you can sue them for damages and report to FTC or your state’s attorney general. There is a 5 year time period to press charges for scams by credit repair services.
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