The Credit Repair Organizations Act is intended to regulate credit repair companies and protect consumers.
It sets clear ground rules for what credit repair companies can and can’t do. You can review the full text of the CROA here, but there are really just a few key points you need to know. The CROA places restrictions on:
How credit repair companies can market their services
What information they need to provide to you
When they can charge you money
What they can say to lenders or the credit bureaus
When they’re allowed to deny your request to cancel your contract
Before the act was introduced, it was all too easy for people calling themselves “credit repair experts” to take advantage of desperate consumers by tricking them into paying big bucks for results that they had no way (or intention) of achieving.
These days, it’s a lot easier to find a legitimate credit repair company, as long as you know what to look out for.