Investigation of lawsuits under the Credit Repair Organizations Act
Fraudulent credit repair services: who is affected?
If you hired a credit repair company, debt consolidation company, or debt settlement company that made broken promises or charged you before providing services, you may have a legal action.
Credit repair companies help consumers challenge inaccuracies in their credit reports. However, some of these organizations may overstate their services in hopes of doing business. Debt consolidation companies promise to reduce your debt by allowing you to make one monthly payment while paying only a portion of your debt, while debt settlement companies offer to settle your debts for “pence”. on the dollar”. These companies claim to allow you to make monthly payments while creditors pursue lawsuits and other collection activities. All of these practices are regulated by the Credit Repair Organizations Act. However, even though some of these actions are illegal, some credit repair companies, debt consolidation companies and debt settlement companies may still operate in this way and may be benefit consumers.
If you hired a credit repair agency, debt consolidation company, or debt settlement company that did the following, you may have a lawsuit:
- Promised to render services that they could not
- Made verbal promises to you that conflicted with the contract or the actions taken by them
- Told you they could change specific information on your credit report to improve your score
- Billed you for services not rendered
- Billed you before performing services
- Didn’t give you a written contract when you hired them
Some credit repair companies may take advantage of consumers already reeling from identity theft, or who are struggling financially and looking to improve their credit. If you have been abused by one of these companies, you may have legal action under the Credit Repair Organizations Act. A qualified attorney can help you take action against unethical credit repair organizations and can help you seek compensation for financial or emotional damages.
Are you eligible?
If you hired a credit repair agency, debt consolidation company, or debt settlement company that made broken promises or charged you before providing services, you may have legal action.
Fill out the form on this page for more information.
About the Credit Repair Agencies Act
The Credit Repair Agencies Act is a law that protects consumers from exploitation by credit repair agencies. When operating legally, credit repair agencies can help consumers challenge inaccuracies in their credit reports. However, they cannot provide any service that a consumer cannot provide themselves. Consumers are legally permitted and able to contact all three credit reporting agencies directly – Experian, Equifax and TransUnion – to dispute inaccuracies on their credit reports. However, some people may find this process confusing, overwhelming, or time-consuming. In these cases, it may be easier for them to hire a credit repair agency to dispute the credit misstatements for them.
When a credit repair agency is hired, it is required under the Credit Repair Agencies Act to inform consumers that the agency cannot provide services that the consumer cannot complete. himself. This is to ensure that the credit repair agency cannot mislead consumers into believing that hiring a credit repair agency can perform impossible tasks related to credit reporting .
For example, credit repair agencies cannot advertise that they can change the correct information on a credit report. In some cases, consumers with poor credit may wish to be able to change accurate information on their credit reports if they have a low credit score. However, this is not possible.
The Credit Repair Organizations Act further protects consumers by prohibiting credit repair organizations from charging consumers before they provide services. Legally, a credit repair organization may charge monthly after services have been rendered or may charge per corrected item on a credit report.
To ensure that billing is done legally, the Credit Repair Agencies Act requires credit repair agencies to create written contracts with their customers. If you contracted with a credit repair agency but did not receive a written contract, even though they billed you at the right time, you may have legal action.
The Costs of Credit Repair Fraud
In most cases, consumers who turn to credit repair agencies are already in distress – they may have just found out they’ve been the victim of identity theft or have found charges on their credit card they don’t recognize. Maybe they have had poor credit for a long time and are looking for a way out.
Some unethical credit repair organizations can take advantage of consumer desperation and vulnerability. They can charge consumers for services they can’t perform and didn’t intend to perform. If that happens, then those consumers will suffer further financial harm.
If a credit repair organization is particularly fraudulent, they may use your credit information unethically and expose you to further identity theft. Identity theft can take years to repair, as can a low credit score.
Fortunately, contacting a qualified attorney can be the first step to effectively protecting your finances and credit. You may be able to take legal action under the Credit Repair Organizations Act and may be able to receive compensation for your injuries.
Join a lawsuit investigation under the Credit Repair Organizations Act
Hiring a qualified attorney can be the first step to effectively protecting your finances and credit if you have been harmed by an unethical credit repair organization. You may be able to take legal action under the Credit Repair Organizations Act and may be able to receive compensation for your injuries.
If you hired a credit repair organization that made broken promises or charged you before providing services, you may have a claim under the Credit Repair Organizations Act.
Complete the form on this page for a FREE case evaluation.