For those who are searching for assistance with improving their credit score, credit repair is certainly an option to consider. However, before working with any company that promises to help improve credit scores and dispute discrepancies on a credit report, it is important to determine whether or not a particular company is operating within the boundaries of the law. What many individuals with bad credit don’t realize is that repairing their credit is legal when it is done in compliance with the Credit Repair Organizations Act (CROA). The Credit Repair Organizations Act (CROA) outlines what credit repair companies are permitted and not permitted to do when it comes to credit repair companies and eliminating debt. Below are some of the important aspects required by The Credit Repair Organizations Act (CROA).

  • A clear and detailed contract must first be received by the individual seeking credit repair services prior to any repair company performing services for them. A typical contract includes a description of services to be performed, payment for these services and time frame for completion.
  • Credit repair organizations are never permitted to ask for payment prior to providing service to an individual. Any company that asks for upfront payment for their services should be shied away from, as these could be potential scams.
  • Companies should never alter the identity of their users or attempt to illegally alter their credit history. All services should be performed within the confines of the law, never misrepresenting the client or their history.
  • Services that are provided to an individual by a credit repair company can never be misrepresented. This means that the services provided by the company must be those that are discussed with the individual seeking their services, no less.
  • Credit repair companies who attempt to misrepresent or lie about an individual’s credit history are breaking the law.

When looking to work with a professional credit repair company having some insight into what the Credit Repair Organizations Act is and the restrictions of credit repair companies and the rights of those seeking their services. There are a number of scam credit repair companies that exist, so it is important to be aware of the restrictions set forth in The Credit Repair Organizations Act (CROA). If for any reason a company is not operating within these specific stipulations, the individual should certainly report them to their state attorney general.