Credit repair organizations (CROs) are businesses that help consumers correct any inaccuracies in their credit reports. Some also offer other services, including debt management advice and education. Many consumers find these services beneficial as their credit score plays a significant role in financial decisions such as qualifying for mortgage or car loans. When hiring credit repair organizations, consumers should ensure the one they select adheres to federal law regarding this industry known as Credit Repair Organizations Act (CROA) or Title IV of Consumer Credit Protection Act.
CROA serves to protect consumers who contract credit repair companies by outlining prohibited practices, disclosure requirements, contract requirements and penalties for violations by these companies. Furthermore, it outlines an enforcement procedure and reporting process should a noncompliance occur within any of these organizations and also helps stop credit repair firms from engaging in misleading advertising to lure in consumers to sign up with them.
The Credit Repair Organization Act (CROA) stipulates that credit repair companies provide consumers with a clear and complete description of their services, prohibit them from charging a fee before fully performing those services, and makes it illegal for credit repair companies to ask consumers to waive their rights under CROA. Furthermore, consumers who violate its provisions can sue directly against any company which breaches it without first going through the Federal Trade Commission process.
The Consumer Rights and Obligations Act does not always allow consumers to recover all damages they’ve experienced from violations by credit repair companies, but does give them the ability to sue for actual damages and amounts paid as well as attorney fees incurred from these agencies. Other consumer protection laws may dictate a different maximum recoverable amount; when you believe you’ve been victimized by one it’s wise to consult a consumer rights attorney as soon as possible.
An experienced attorney will take the time to carefully review your case and explain your options, so if you’ve been affected by a credit repair agency contact Teske Katz immediately for a consultation. Our Minneapolis credit repair lawyers specialize in consumer rights laws such as the Consumer Credit Reporting Agencies Act (CROA), class action lawsuits, class-wide representation, class arbitration agreements, class actions against creditors and class actions to get clients the compensation they deserve – call 612-345-9800 today for your free consultation session or fill out our online contact form now to schedule one!
