The Credit Repair Organizations Act & The Telemarketing Sales Rule
Exposing The Truth Of What’s Going On In What May Be One Of The Hottest Industries To Start A New HUSTLE In Masking It As A Business That’s Effecting Millions Of Consumers Adversely On An Annual Basis.
Did You Know; The Credit Repair Industry Has Become A Multi Billion Dollar Industry?
Here’s The Truth About What Many Of These Companies Are Doing & Why As A Fair Credit Reporting Paralegal I Made The Decision To Start Offering Credit Report Audits Because The Truth Of Credit Repair Is RARELY Being Told and Disclosed.
1 in every 5 credit reports contain errors and the FTC reports that they received over 1.4 Million identity theft complaints in 2021 alone.
You aren’t alone, and you don’t have to fight for your rights alone but many of the credit repair companies out there are not educated on the law, aren’t aware of how the credit repair process works because they are starting these businesses with the intention of just repairing their own credit, and aren’t aware that they are potentially doing more damage to the credit files of hundreds of thousands of consumers each year by following overnight gurus promising them million dollar dreams (and seamingly overnight at that). If that wasn’t enough - how about this one - thousands of these credit repair companies (a very large majority infact) are outsourcing the auditing of your files, the letter writing, and even the mailing of your letters (that they never want to provide you copies of) to 3rd world countries, and 3rd party services putting you even more at risk for identity theft when you are going to them for help.
Have You Previously Hired A Credit Repair Company Based On False Promises, Deceptive Claims Or The Idea That It Would Give You A Fresh Start Only To Find The Company Did Nothing Or Next To Nothing?
Credit Repair Companies Are Held To High Standards Whether They Are Legit Or Not & There Are Both State & Federal Laws Protecting You Against Shady, Deceptive Practices Which Is Why We’re Highlighting The Laws & Benefits Of The Laws Below:
The Credit Repair Organizations Act (CROA):
The Credit Repair Organizations Act protects consumers against deceptive claims made by the many credit repair companies that are out there.
Additionally, the law provides you with the mandatory right to receive and sign a consumer agreement, and also ensures that you do not have to pay before work is done on your behalf. Anything that you are billed for should be paid for by you, and in arrears. While you may sign a credit card authorization form, that credit card authorization form SHOULD have a stipulated clause that states that no charges are authorized until the consumer has received a copy of that months round of dispute letters and work completed break down on or around x date for that specific month.
Under the Credit Repair Organizations act, you’re also provided with a 3 day right to cancel the agreement that you signed WITHOUT penalty or fear that you will be charged a consultation fee or any other fee for services not yet rendered.
For more information read more about the credit repair organizations act.
The Telemarketing Sales Rule (TSR) & The Telephone Consumer Protection Act (TCPA):
Did you retain a credit repair company that is in a different state other than where you reside based on a phone call, and not an in person face to face meeting and transaction? If so, that company is most likely violating the telemarketing sales rule.
The telemarketing sales rule applies to any and all out of state non face to face meetings that occur between credit repair companies or individuals that work for credit repair companies and consumers.
Telemarketing sales rule violations often go hand in hand with Telephone Consumer Protection Act (TCPA) violations, and it’s worth the time to dig in on consumer benefits to filing actions against these companies that are very willfully and knowingly breaking the law just to “get your money” and alleged business.
Know Your Rights. If you believe you’ve been mislead by any of the overnight gurus out there claiming themselves as a company that can help you illegally remove a debt (that is actually yours) or even a debt that is the product of identity theft and believe you were scammed, trust me, you are not alone but, there are options out there that are legit and on the up and up.
Other Steps You Can Take If You Believe You’ve Been Mislead By A For Profit Credit Repair Company.
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Report Them To Your State Attorney General
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Report Them To The FTC
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Report Them To The CFPB