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 a business 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: 04-05-2018 07:15 PM PDTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.