The Credit Repair Organizations Act, also known as CROA, is a section of the Consumer Credit Protection Act that protects consumers from credit repair scams.
Credit repair organizations can be an easy fix for consumers who are buried in debt with bad credit. By using a credit repair organization, experts can help you control your finances and teach you how to manage your money correctly. These services often offer continuous credit score monitoring and debt management for a monthly payment.
However, there are tons of scams out there that take advantage of a consumer’s desperation to get rid of their bad credit and fix up their credit reports. These scams may call themselves credit repair organizations, but they do not disclose all their fees and have been know to literally steal money from consumers.
The CROA, signed into law in September of 1996, was passed to help protect consumers from these scams. CROA ensures that prospective buyers of a credit repair service are provided with all the information necessary to make an informed decision. Thus, credit repair organizations have to show clients a contract in writing. In addition, CROA explains that credit repair services can only be paid after the services have been rendered. They cannot ask for an advance payment.
If they do ask for advance payment, turn around and run as fast as you can! Then try joining our Credit Talk Forum where you can get all the help you need for free from credit experts and peers who have repaired their own credit.
Credit repair organizations can be an easy fix for consumers who are buried in debt with bad credit. By using a credit repair organization, experts can help you control your finances and teach you how to manage your money correctly. These services often offer continuous credit score monitoring and debt management for a monthly payment.
However, there are tons of scams out there that take advantage of a consumer’s desperation to get rid of their bad credit and fix up their credit reports. These scams may call themselves credit repair organizations, but they do not disclose all their fees and have been know to literally steal money from consumers.
The CROA, signed into law in September of 1996, was passed to help protect consumers from these scams. CROA ensures that prospective buyers of a credit repair service are provided with all the information necessary to make an informed decision. Thus, credit repair organizations have to show clients a contract in writing. In addition, CROA explains that credit repair services can only be paid after the services have been rendered. They cannot ask for an advance payment.
If they do ask for advance payment, turn around and run as fast as you can! Then try joining our Credit Talk Forum where you can get all the help you need for free from credit experts and peers who have repaired their own credit.
