Understanding the CROA (Credit Repair Organizations Act)
If you have been battling bad credit and you are looking for a way out of your financial troubles, then this is a must-read for you.
Credit Repair Agencies
Credit repair agencies are known entities to people battling poor credit. These agencies take up your case with a promise of improving your scores and enabling all the financial rights to which an American citizen is entitled. The question is, can we actually believe all their claims?
If you simply google “credit repair,” you will find page after page of agencies willing to offer you their services. But then there are articles that question the very authenticity of these agencies.
The CROA (Credit Repair Organizations Act)
For all of you who have enlisted the help of a credit repair agency, we are happy to report that it is a step in the right direction towards a better credit score. Having said this, there are certain bad apples that may not deliver on their promise. This is where the CROA comes in.
Did you know that CROA is not an act, though its name states just that? In fact, it’s a title that has been passed to protect you – the consumer – from malpractice by credit repair agencies.
September 1996
Remember, remember, the month of September…We just love drumming up the beginning. In the beginning, the credit repair industry received heavy criticism in light of evidence of cheating consumers out of their money with the promise of improving their credit score. The government decided enough was enough and signed into existence the CROA.
What The Act Does
With the act by your side, you are entitled to certain rights that include the following:
- Any credit repair agency is required to furnish you with all the information required before you decide to sign up with them.
- The information they provide should be accurate and not mislead you in any way.
- The agencies are not allowed to make false claims, such as a guaranteed removal of negative credit.
- Neither are they allowed to create another file in your name that does not contain any credit history.
- The agencies must operate on the modern payment method of “pay after deletion,” whereby you need to pay the agency only after erroneous items are deleted from your credit report.
Before you approach any credit repair agency, ensure that you have a fair understanding of the CROA.
The Credit Repair Organizations Act protects you, and helps us serve your needs. Eager to find out more about your rights in relation to credit repair? We can help. At Action Credit Repair, our experts will provide a personalized credit consultation, an audit of your credit history, and offer solutions to all of your credit obstacles. Contact us today to speak with an experienced professional: Call 518-945-2299 or email [email protected].