We are 100% legal
For your protection there is Federal legislation that regulates our industry. It is the Credit Repair Organizations Act (CROA) of 1996. It was passed to put an end to abusive “Credit Repair Business.” The Federal Trade Commission has the responsibility of enforcing the Act.
If you as a consumer sign up for a Credit Restoration Program and the company violates the CROA, you can sue for the recovery of any money paid, damages, punitive damages plus attorneys and court fees.
Forbidden Practices.
In a nutshell the following practices are forbidden under the CROA, you as a consumer should walk away from anyone asking you to do any of the following:
The Credit Repair Company asks for a down payment, full payment or set-up fee in order to start working on your case.
No payments in advance whatsoever are allowed under the CROA. This is why we charge no set-up fee, no fixed monthly payments. During the credit restoration process we charge only per work done for our clients and per negative tradeline deleted or improved
They suggest you to open a new credit file using a different ID form such a Tax Payer Number and/or a different name.
This is not only illegal under the CROA, it can carry a criminal liability for you.
They will not provide a written contract with all terms.
A written contract is mandatory under the CROA. Click Here to read the BCR Consulting Contract.
They provide a written contract, but an estimation of the total cost of the service and time when the service will be completed, is vague or not included.
It is mandatory under the CROA to include specific estimations in the contract. Open ended contracts of type "As long as it takes" are not allowed.
They provide a written contract, but without a full and detailed description of the services to be performed by the credit repair organization for the consumer, including all guarantees of performance.
All of this must be included in the contract.
They do not clearly tell you that even if you signed the contract, you have the right to cancel it within the next three days without incurring any fees.
You have the right to cancel a credit repair contract and receive a full refund of any money paid, any time within three days after signature, for any reason.
They do not include the mandatory CROA disclosure on the paperwork they send to you.
Click Here to read the CROA Disclosure.
They attempt to obtain from you a waiver of the protection provided by the CROA, or any right of the consumer under the act.
Such attempt is a violation of the Act and even if you signed it is invalid and void.
