Here Is What You Need To Know About The Credit Repair Organizations Act (CROA)
As opposed to some ads you may have seen, if you have negative information in your credit file, as reflected by the Big Three reporting companies, Experian, Equifax, and TransUnion, proves to be accurate, there is little you can do about it. You can only lean on the time to heal your credit. The reporting companies will generally list negative credit information for seven years, and bankruptcy information will remain on your report for ten years. Time will start counting from the moment the event took place.
Other limitations include unpaid judgments against you. They can either stay reported for 7 years or until the statute of limitations for that particular type of judgment expires, whichever is longer. However, there are no restrictions as to how lengthy criminal sentences may be posted. Likewise for information that was recorded due to your application for work that would pay more than $75,000 a year, or because you have applied for credit or life insurance more than $150,000.
If you choose to solicit expert help, the Credit Repair Organizations Act (CROA) has clearly described your rights as a customer. You must be given a copy of the booklet "Consumer Credit File Rights Under State and Federal Law" BEFORE you signify any legal contract with an organization. Your contract must be in writing and must spell out all your rights and responsibilities. It is then your duty as a careful consumer to read all the documents you are given, and then to ask questions if they include anything you do not know BEFORE you sign.
There are several provisions listed on CROA to protect consumers including no credit repair services can falsely claim any services that they are not capable of delivering.
There are specific points that must be explicitly written in a contract with a credit repair company. The company's name, address, and contact information must be entered, the contract must stipulate the total cost for their assistance, as well as a comprehensive summary of the services they will perform to earn those payments. The time frame for the work's fulfillment must also be stipulated, as well as any guarantees they may allow for their services.
You should not be charged any credit repair company’s services, and you can not be obligated to pay until they have completed all the services they originally assured you in the written contract. Credit repair companies are also forbidden from offering any services on your behalf until you have signed a written contract and then have been given a three-day waiting period. At any time during those three days, you have the freedom to withdraw your contract with a credit repair company without being obliged to pay any charges.
Even if you are faced with financial difficulties, do not let them hinder your right to exercise your rights under CROA. Insist on them all the time.