Credit repair companies are businesses that offer to improve your credit, or will help you find credit. The clients of these companies are usually individuals with poor credit, those with bankruptcies or late with their bill pays are candidates; those with no credit are generally members as well.
What Can Credit Repair Companies Do?
- charge a fee for their services.
- make referrals to customers in order to obtain credit.
- make inquiries to credit bureaus on behalf of their clients.
- offer advice to clients.
What They Cannot Do
- require customers to give up legal rights.
- charge money to refer customers to retailers for same credit terms the public can obtain.
- practice without a license.
- do business with another company in the the same location.
- mislead the public about charges/services.
- make false statements about clients' credit or ask their clients to do so.
Responsibilities
- These companies must make their license available to the public in plain sight.
- Credit Repair Companies must offer clients documentation conveying their right to view credit bureau files; in addition, this documentation allows them to receive files, describes service that will be done, as well as a rate for the offered services.
- Documentation must be in writing.
- Documentation must offer a cancellation.
- Offer detailed terms and agreements.
- These companies must offer copies of all paperwork.
- Disclose physical address, agent's name, as well as the name of their bond-issuing company.
- These companies must also offer a deadline, when services will be complete.
Credit Repair Companies offer services to help with credit issues; however, these companies are not debt managers.
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