Credit repair providers must abide by several laws designed to safeguard consumers, such as the Credit Repair Organizations Act (CROA) and Fair Credit Reporting Act. If a provider doesn’t abide by these rules, it may not be operating legally – be wary of companies that fail to provide clear breakdowns of services and fees, explain your rights for disputing information on your reports for free, and allow cancellation within three days without penalties or penalty fees.
Some credit repair companies provide additional perks that can add significant savings compared to upfront and monthly fees charged by most credit repair services. Some services even allow users to pause service at any time if needed to save money on startup fees and eliminate unnecessary hard inquiries.
Prior to signing on with any credit repair agency, research their track record through online consumer reviews and accreditation with the Better Business Bureau. Select a firm with a high BBB rating as well as many positive consumer testimonials before comparing its prices and services against those offered by competing agencies.
An obvious red flag should be any credit repair company that pressures you into paying up front fees before offering the credit repair service you pay for, which violates Telemarketing Sales Rule and is illegal. Make sure any company you partner with complies with Credit Repair Organizations Act’s requirement of providing you with written contracts detailing their services and timeline for results.
Credit repair agencies that excel offer low start-up fees and allow their subscribers to cancel at any time without incurring extra charges or cancellation fees. Furthermore, customer support should be quick and clear – any lack of response could indicate their representatives don’t know enough about credit laws and the law itself.
