Over the years, Congress has enacted certain laws and regulations designed to protect American consumers. Some of those laws include The Fair Credit Billing Act, The Fair Credit Reporting Act and The Fair Debt Collection Practices Act.
Credit repair organizations advocate on your behalf using the protections granted to you under law. Modern credit repair organizations meet a need for consumers who:
- Lack the time or ability to correct inaccurate information on their credit reports or choose to hire someone to do so on their behalf;
- Lack understanding or expertise in exerting their rights under FCRA and other laws and seek experts to assist them; and/or
- Need non-repair services such as fraud monitoring, identify theft protection, credit monitoring and credit education.
AACCP believes in a core set of operating principles that protect consumers and help them get the access to credit that they need. CROs should meet these standards, and we encourage consumers to avoid credit repair companies that:
1
Demand an upfront payment
2
Don’t provide a written contract that includes a right to cancel
3
Guarantee an increase in a consumer’s credit score or other result
4
Have demonstrated a pattern of bad behavior
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Offer to create a new credit profile
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Encourage consumers to make false representations
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Are not licensed, bonded and insured, where required by law
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Promise they can remove negative information