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What is the Credit Repair Organizations Act?

The Credit Repair Organizations Act is a relatively new piece of legislature that is intended to protect consumers from predatory practices of companies masquerading as advocates for those struggling with debt.I wouldn’t go as far to officially call these guys con artists, but they absolutely have put an ugly black eye on the credit consulting industry.The prevalence of these detestable organizations called for the Federal Trade Commission to thankfully put into effect the Credit Repair Organizations Act.

 

 

What are the rules of the Credit Repair Organizations Act?

 

 

The Credit Repair Organizations Act is a relatively new piece of legislature that is intended to protect consumers from predatory practices of companies masquerading as advocates for those struggling with debt.I wouldn’t go as far to officially call these guys con artists, but they absolutely have put an ugly black eye on the credit consulting industry.The prevalence of these detestable organizations called for the Federal Trade Commission to thankfully put into effect the Credit Repair Organizations Act. 

 

What are the rules of the Credit Repair Organizations Act?

 

·Companies or individuals are expressly prohibited from making any sort of a false or misleading statement in regards to a consumers credit worthiness, credit score, or credit standing to;

- A credit reporting agency

- Any individual (like a landlord etc)

- Creditor, current or future (credit card company etc)

 

·Credit repair companies or employees are not allowed to misrepresent what services are provided or what types of business they do.

 

·Companies or individuals are not allowed to commit fraud or offer the consumer advice to commit fraud or advice on how to do so.

 

·These companies are absolutely not allowed to collect any sort of payment in advance of services agreed upon being completed!

 

 

What if I have been a victim of one of these predatory Credit Repair Organizations?

 

 

You’re unfortunately not alone.These laws were put into place because there was an overwhelming need to regulate this industry.A lot of these companies have been weeded out since this law was put into effect in 2010, but there are still a few out there. If you think you have been taken advantage of, contact the Federal Trade Commission immediately.You can write to the address below complete with a letter stating your case as well as a copy of any contract signed or paperwork provided from the company:

 

 

 

The Public Reference Branch
Federal Trade Commission
Washington, D.C. 20580'.

 

 

 

 

 

 

 

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Wednesday, 01 December 2021
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