Impact

Modern Credit Repair Organizations Are Beneficial for Consumers and the Economy 

Credit Repair Organizations exist to help consumers navigate a complex credit reporting system that has consistently been shown to frequently include errors on consumer credit reports. This is not credit counseling or debt consolidation, rather our advocates work with consumers to get the access to credit products they deserve so they can engage in productive economic activity. Nor do modern Credit Repair Organizations resemble the bad actors who once operated in the field but who have been largely removed from the business by effective regulation, enforcement action, and industry self-policing. Without Credit Repair Organizations, the complexities, mistakes, and incentives embedded in the credit reporting system would unnecessarily deny consumers access to credit products, reducing their individual economic opportunity and the output of the overall economy. Credit Repair Organizations are:  

The Only Advocates for Consumers in the Credit Reporting System 

  • Credit Repair Organizations are the only advocates for consumers in a credit reporting system that is not designed to be responsive to the needs of individual consumers.  
  • Errors on credit reports have long been a problem in the credit reporting system, and credit repair organizations work with consumers to assert the legal rights and ensure that the information on their credit reports is accurate and fair. 
  • Credit Repair Organizations only exist because there is consumer demand for assistance  

Getting Consumers’ the Access to Credit Products they Deserve Is Beneficial for the Economy 

  • Credit Repair Organizations work with consumers, credit reporting agencies, and data furnishers to correct errors in consumer credit reports. 
  • We work with consumers who can pay their debts, they just want them to be accurate. 
  • This helps consumers get access to the credit products they deserve, making it more likely that they buy a house or a car, or obtain new employment. 

A Resource for Consumers who Don’t Have the Expertise or Time to Handle on their Own 

  • It requires expertise and time to navigate the credit reporting system successfully. 
  • Many similar industries exist to assist everyday consumers navigate complex financial systems, like accountants, financial planners, tax preparers, and investment advisers.  

Effective Regulation has Improved the Credit Repair Industry 

  • The Credit Repair Organizations Act has helped weed out bad actors in the industry. 
  • Modern CROs do not demand upfront payment, guarantee to improve consumers’ credit scores or remove negative information, encourage false representations, or offer to create a new credit profile.  
  • Without advocates, consumers might get unfairly tagged with having bad debts, placing a further drag on any economic recovery.