Credzu.com eliminates credit repair scams and promotes regulatory compliance with its online escrow platform
COCOA BEACH, Florida., August 26, 2021 /PRNewswire/ — Imagine a world without credit repair scams. Imagine no more. Meet Credzu.com. After years of careful planning and debut at the 2021 Credit Covenant, a powerhouse Florida fintech company has launched a consumer protection platform to “fix” the credit repair industry.
the credit repair, commercial linesand debt settlement industries remain ripe for abuse, despite well-meaning consumer protection laws and many good industry players. A disinterested third-party intermediary was the missing link. But nothing is missing.
Credzu’s solution applies escrow principles to transactions involving credit repair and related services. Specifically, Credzu holds consumer funds in escrow and only releases funds to a service provider if and when that service provider acts as agreed in writing. Otherwise, Credzu returns the funds to the consumer.
Additionally, the platform promotes transparency and eliminates many forms of fraud and misunderstandings by requiring written communication and legally compliant contracts between the parties to the transaction.
But that’s not the only problem Credzu solves.
Decades of consumer harm associated with credit repair services have led to regulations so severe that compliance can be impossible.
For example, the Telemarketing Sales Rule (TSR) prohibits credit repair companies from billing consumers until six months after services are provided. 16 CFR § 310.4(a)(2). The federal government began enforcing this TSR provision very recently and very aggressively, resulting in tens of millions of dollars in fines. In response, trade associations and credit repair companies have challenged the TSR in court. The TSR survived all challenges.
Credzu addresses this as well.
Credit repair transactions through Credzu’s online-only platform are not subject to this 6-month rule as TSR does not apply “to internet-based transactions”. 80 FR 77520 (December 14, 2015). Even so, the very foundation of Credzu’s business model is to implement – not avoid – the consumer protection principles enshrined in these regulations.
“We appreciate the intent of consumer protection laws, which punishing bad behavior after it has happened. We want to reinforce these intentions by holding funds in escrow and prevent bad behavior before it starts” says the founder of Credzu, Robert Sigman.
“Think about it. If you were a scammer you would never use Credzu because with money locked away in escrow you would know you would never get paid. Only companies confident in their abilities and serious about compliance will use Credzu. For this reason, consumers have a reliable way to obtain credit-related services.”
Credzu’s business model, which reduces consumer harm and increases regulatory compliant behavior, is a crucial addition to the industry. And it doesn’t come at a better time. Consumers, especially the disadvantaged, are poised to flood the credit repair industry due to the economic fallout from COVID-19. There has never been a more pressing need for protection. As companies realize their regulatory peril and embrace Credzu, everyone benefits.
Credzu encourages credit repair companies to consult the TSR problem with their lawyer. Credzu encourages everyone to tag their to place and follow their Facebook and Twitter for upcoming updates.
Credzu is excited to bring its product to market because, in an environment full of worries, there is one less thing to worry about: credit repair is now safe.