Section
406 of the Credit Repair Organizations Act protects
consumers by making credit repair organizations provide
you with a clear, written contract before performing
any type of credit repair service. In a time when
gasoline, food prices, and mortgage loan foreclosures
are at an all time high, many people have bad credit.
A great deal of us are looking for a little help getting
our debts under control so we can improve our FICO
score and get back on our feet. Utilizing a legitimate
credit repair service can be a step in the right
direction to proving your creditworthiness.
The
problem is, there are deceptive credit repair organizations
that prey on good people that are trying to repair
their bad credit. You have protection under the law.
Beware of any company, organization, service, or individual
that does not provide you with a proper contract for
credit repair services.
The credit repair contract that is presented to you
must be written, dated, and must include:
-
The terms and conditions of payment, including the
total amount of all payments to be made.
You should never have to guess the total amount that
credit repair services will cost. You should not have
to pay a "retainer" to any credit repair
organization that promises ongoing and unlimited credit
repair services. The cost for any services that will
be provided should be clear, concise, and have an
end date.
-
A full and detailed description of the services to
be performed and how long it will take.
The credit repair organization must include all guarantees
of performance, and an estimate of the date when the
services will be complete (or the length of time needed
to perform services). Do not be tempted to work with
any company that claims to have "insider secrets"
that they cannot share with you when comes to YOUR
credit profile. The services that will be provided
by the credit repair organization should be clearly
written. Additionally, any guarantees and claims such
as increased credit scores should be written and include
an end date. Do not accept any verbal warranties,
guarantees, or claims.
- The credit repair
organization's name and principal business address.
Be wary of any credit repair service that will not
provide you with a physical business address where
your information will be located as they access your
credit file. Companies that only list a post office
box as their principal business address may be fraudulent,
and who knows what they could be doing with your personal
information.
-
Terms of cancellation. A conspicuous
statement in bold face type, in immediate proximity
to the space reserved for your signature on the contract,
must read as follows: "You may cancel this contract
without penalty or obligation at any time before midnight
of the 3rd business day after the date on which you
signed the contract. See the attached notice of cancellation
form for an explanation of this right." The law
allows you three days to cancel your contract without
penalty. Take this time to thoroughly review the contract
and get any questions answered.
-
A 'Notice of Cancellation' form. Each
contract shall be accompanied by a form, in duplicate,
which must have specific wording and include the heading
'Notice of Cancellation'. For your convenience, this
notice of cancellation form must be included in case
you decide during your three day grace period that
you do not want any services performed. If your contract
does not contain this form, be wary. This may indicate
that you are not working with a legitimate credit
repair organization.
Click
here to visit the official website of the Federal
Trade Commission to view the full text of the law
regulating credit repair organizations and credit
repair contracts.
All
credit repair companies are not bad. Legitimate
credit repair companies can be very helpful as
you get your debt under control. When you know your
rights and handle your responsibilities, you can be
successful in establishing that you are creditworthy.
Get credit repair help and get back on your feet.
You will be glad you did.
For
help finding legitimate credit repair services, low
interest rate credit cards for all credit types, affordable
credit fraud protection, and more visit our homepage.
