You may have seen television advertisements for these types of organizations. Credit repair organizations are for-profit businesses that promise to consolidate any debts you have, help you find a way to pay off your debt, and repair your low credit rating. However, when you sign on with one of these organizations, you should be aware that there a few practices that the e Credit Repair Organizations Act prohibits these organizations from engaging in:
Under the Credit Repair Organizations Act, credit repair organizations are required to tell you certain pieces of information before you sign a contract with them, including:
The credit repair organization must also supply you with a written contract that must be signed and dated by you before they can begin to do business with you and charge you for any services. The contract should specify what services they are supplying you, as well as how long those services will last.
You may cancel a contract with this organization up to a certain point. As mentioned above, after you have signed a contract with a credit repair organization, you have until three business days afterwards to sign a cancellation form to get out of the contract.
First, you will probably want to contact the Federal Trade Commission (FTC) and file a complaint with them. The FTC regulates the business practices of these types of organizations. In addition, you might want to contact an attorney who has experience in credit matters. Your attorney will be able to advise you of your rights and let you know if you are entitled to compensation in a lawsuit against the organization for services you have already paid for.
Last Modified: 07-08-2014 10:27 AM PDTLaw Library Disclaimer
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