CALL NOW: 1-877-735-8600

What is the Credit Repair Organizations Act? (CROA)

Credit repair has become a big business over the years.

With the increasing importance of your credit score to make purchases, those who have experienced credit problems have been turning to various credit repair organizations to help improve their credit.

Watch Out for the Bad Credit Repair Companies

Unfortunately, there are credit repair companies that use unethical practices to improve their clients’ scores and take advantage of the consumer.

The Credit Repair Organizations Act (CROA) was put in place to make sure that consumers know their rights before choosing to work with a credit repair company.

This is one Act that really works for consumer. In fact, in 2008, the Federal Trade Commission shut down 34 credit repair organizations for violations of the CROA.

The Most Important CROA Rule to Remember

The biggest takeaway from CROA is that a credit repair company must clearly explain the payment structure to consumers seeking their help.
Always remember that you should not give any payment to credit repair companies before any services have been performed. Setup or upfront fees directly violate the rules of CROA.

Before Choosing a Credit Repair Company

Don’t be scammed. Make sure you know what credit repair companies can and cannot do with your credit before making a choice.

Before you select the credit repair organization you will use to help improve your credit, make sure that they provide you with the following:

What Can a Credit Repair Agency Really Do For Me?

Credit repair is a possibility. But it is important to know that a lot of companies out there are not looking out for your best interest. This is why you need to understand your rights before selecting a credit repair options. Remember, there is nothing a credit repair agency can do that you can’t do yourself.

A good credit repair company can help you:

What are These Companies Prohibited from Doing Under CROA?

The Credit Repair Organizations Act makes it clear that these companies cannot partake in deceptive advertising and is prohibited from using numerous unethical practices. These include but are not limited to:

If you believe you’ve been victimized by a bad credit repair agency, fill out the form on this page or call us at 1-877-735-8600. You may be able to sue for damages or get your money back.

Want more information? For more check out the FTC’s CROA page.

Free Case Review

Subscribe for regular updates.
This field is for validation purposes and should be left unchanged.

Once you submit this form a representative from the law firm of Francis Mailman Soumilas, P.C. will be in touch.
Or Call 1-877-735-8600 and get immediate help to see if you have a case.

Protecting Consumer Rights Nationwide for Over 26 Years

Expert legal advice, private consultation, no obligation
If you do have case, there is no out-of-pocket cost to you.