The Credit Repair Organizations Act


You may be surprised to learn that credit repair organizations are highly regulated. The fact is that over the years there have been many credit repair scams and credit repair fraud that has been detrimental to consumers. So much so in fact that back in 1996, President Clinton signed the statute that would be referred to as the Credit Repair Organizations Act.

First off, contrary to what many may have you believe, credit repair and credit repair companies are completely legal in every state except Georgia.

The Credit Repair Organizations Act makes it illegal for a credit repair company to
? Lie or advise you to like about your credit history to current or future creditors.
? Alter your identity; suggest that you get a new EIN, or Employer Identification Number in order to get a new credit history.
? Misrepresent the services that they provide for you.
? Ask you to pay for services prior to the time they have been rendered.

The law also requires that the organization provide you with a disclosure called the ?Consumer Credit File Rights Under State and Federal Law? that lets you know that you have the right to obtain a credit report and you can dispute inaccurate information on your own.


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