Credit Repair Services Get Help From Attorneys |
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According to the laws stipulated, the credit repair services need to deliver the promised service before you pay for the same. Many states have laws strictly regulating credit repair services. If you have lost money to credit repair services scams, the Illinois Attorney General's office will be there to help you. If you've had a problem with a credit repair service, you must the report the company to the local consumer affairs office or the Illinois Attorney General's Office.
The Credit Repair Organizations Act prohibits companies from making false claims about credit repair services and makes it illegal for these operations to charge you until they have delivered their services. It is necessary for these companies to inform you about your legal rights. Credit repair services must provide the details of your legal rights and the services that will be provided to you in a written contract. The contract should also mention the time it will take to achieve results, the total cost, and any guarantees that are offered. Under the law, these contracts also must explain that consumers have the right to cancel the agreement within three days at no charge. Per the law, the consumer also has the right to sue the fraud company in federal court. The law allows you to seek either your actual losses or the amount you paid to the credit repair services, whichever is more. You also can seek punitive damages: amount of money to punish the company for violating the law. The law also allows class actions in federal court: cases where groups of consumers join together in one lawsuit. If you win, the other side has to pay your attorney's fees. Many states have laws regulating credit repair services, and may be helpful if you've lost money to credit repair scams. In case of a problem with a credit repair service, you can report the company to your local consumer affairs office or your state attorney general (AG). Many AGs have toll-free consumer hotlines. You can the same with your local directory assistance. At the same time, you can also contact the FTC regarding a particular credit repair services company. Although the FTC cannot resolve individual credit problems for consumers, it can act against a fraud company if it sees a pattern of possible law violations. If you believe that credit repair services has engaged in credit fraud, you can file a complaint online, or send your complaint to the Consumer Response Center in Washington. Federal and state laws govern credit repair services to make sure that they do not misrepresent their services. California law requires credit services organizations to obtain a $100,000 bond and maintain it as long as they are in business and for two years after they cease doing business. They must also register themselves with the Department of Justice and obtain a certificate of registration. This should be made available to you for inspection. Credit repair services are not allowed to accept payment from you until they have fully delivered the services they promised to perform for you, which they must do within six months period. They are also required to apprise you of your rights as a consumer under the Fair Credit Reporting Act. They are also supposed to provide you a written contract specifying the services to be performed and informing you of your right to cancel the contract without paying anything within 5 working days of signing it. If you choose to do business with credit repair services, you should contact the Better Business Bureau for a reliability report on the company you have selected. Inspect the company's certificate of registration. This will inform you of any litigation against that company or of any complaints filed with any governmental authority of California, any other state, or the federal government and how they were resolved. Make sure you are clear about what the credit repair services will and will not do for you. If you take a copy of your credit report to them, you have the right to ask them exactly what information they will change or remove. You must remember that the law requires a written contract; therefore, you must get these promises in writing. Also bear in mind that if you are told about any accurate information being changed or erased, you are probably not being told the whole truth. You can correct mistakes on your credit report yourself without taking any help of credit repair services. If you were recently denied credit because of information in your credit report, you have the right to request a free copy. Otherwise there is a small fee, unless your state law provides for one free report a year. It doesn't cost anything to question or dispute items in your report. So protect yourself from credit repair scam. |
