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Major Rights in Availing Credit Repair Services

By Janet Lacey
Published: Thursday, January 28th, 2010

Given that there are many scam credit repairing companies that offer instant repair services there are still those that are legally assisting credit account holders with the procedures needed to be done in doing credit repair. After the passing of the Fair Credit Reporting Act or FCRA that entitled every American citizen to get free reports in time that disputes are needed to counter adverse financial actions; the federal government pushed for another law which is specific to repairing credits. The Credit Repair Organization Act was passed to protect individuals, who are filing for disputes, from the possible scam services offered by some illegal credit repairers.

Before signing the contract for credit repairing services, every credit repair company or organization is required to present a copy of “Consumer Credit File Rights Under State and Federal Law” to the individual who is availing the services of the company. Failing to do so, should automatically make the credit account holder think twice in availing the repair services. All legally operating companies know that they need to present this document, those who are just scamming will most probably ignore this legal step in repairing credit. All credit repair companies and organizations are strictly and unconditionally prohibited by the law to:

  • Mislead its clients by fallaciously and confusingly making claims to the quality of their services, like instant repairs.
  • Charge their customers prior to the fulfillment of the services that they have promised.
  • Proceed in the services that they have promised to their credit account holder without the signature and authorization of their client.
  • Proceed with giving the services without observing the three days waiting period prescribed by the law. During this period the credit account holder client can cancel his or her availed services without paying any fees.     

Credit repair companies and organizations who will fail to prohibit themselves from doing these four situations will be dealt accordingly by the federal government. A client should also be responsible enough to look for the vital parts of a credit repair agreement. The major parts that should be included in the repair contract are:

  • Terms and amount of payment for the services
  • A detailed description on the services to be rendered by the credit repairing company which includes even the targeted effects of the services
  • The time duration that the services will be offered
  • The terms of the guarantees the company offers
  • The complete name and address of the credit repairing company

Even if the Federal government has sharpened its talons against the possible committable crimes of credit repair companies and organizations, there are still a significant number of scam victims being reported every day. Most of these victims found out that they are being victimized too late for actions and counter measures.

There are even extreme cases that the credit account holder client of a small credit repair company has been filed with multiple lawsuits regarding a supposedly committed identity fraud. The accused was helpless and unknowing of what is really happening because her chosen credit repairing company did not disclosed to her the possible implications of their offered services. In times like this the best option of the victim is to access the help from the Attorney General’s Office of his or her state.

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