What Is The Credit Repair Organizations Act?

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What Is The Credit Repair Organizations Act? - By: lar, Posted on: 2008-03-14

By law, credit repair organizations must give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before signing the contract. The law contains specific consumer protections. For example, a credit repair company cannot:

* make false claims about their services
* charge you until they have completed the promised services
* perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees.

Your contract must specify:

* the total cost of the services
* a detailed description of the services to be performed
* how long it will take to achieve the results
* any "guarantees" they offer
* the company's name and business address.

Where to Complain

If you've had a problem with any of the scams described here, contact your local consumer protection agency, state Attorney General (AG), or Better Business Bureau. Many AGs have toll-free consumer hotlines. Check with your local directory assistance.

Credit repair is a slow, tedious process that, if followed, can result in getting back your good name. If you see claims that a company can repair or rebuild your credit over night, run like the wind.

Maintaining a budget, sticking to it, and being persistent are the ways to get back on your feet. There are no quick fixes.

Things may look extremely bleak and the chance to get out of debt quick seems like the way to go. But all it will do is dig you deeper into debt and make things worse.

Do it the right way. Take your time, check out the options, and chip away at your debt and in time you will have the debt under control.

Article Source: http://www.girlarticles.com

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