How to File a Grievance Against a Credit Repair Company
There are a myriad of reasons that lead to poor credit. Many people have financial hardships that cause them to fall behind on their bills. Others were negligent in their debts. Whatever the reason may be, poor credit can be costly in today’s world. Poor credit makes it difficult to obtain many of the necessities that people need in order to live. In some cases, people have been denied employment because of poor credit.
Many companies have recognized the disposition of those with poor credit and have begun to offer credit repair services. While some companies are legitimate in their attempts to improve your credit, a great number of them are scammers preying on people with poor credit. In 1997, Congress passed the Credit Repair Organizations Act in order to protect consumers from companies that only want to scam them out of their money.
Even though there is legislature preventing fraudulent credit repair companies, there are still some people who believe that they can get away with scams. These companies continue to exist and victimize many people with their schemes. Being educated on these schemes is the best way to avoid falling prey to them. There are many ways that you can decide the legitimacy of a particular company.
- Any company that asks for money before any services have been provided is more than likely trying to scam you. The Credit Repair Organizations Act holds that you should not pay until the company has delivered the promised results.
- Companies should advise you of your rights and give you a copy of the Credit Repair Organizations Act. They should also advise you of any services that you can do yourself for free.
- Avoid using any company that advises you not to contact a credit reporting company. Companies that have something to hide usually give this advice. They are fearful that you will find out the truth about their services should you contact a credit reporting company.
- A credit repair company should never suggest that you create a new credit identity. Do not apply for an Employer Identification Number as a way to receive a new credit history. This is against the law. You could find yourself in more trouble with more debt than you were before.
- If a company advises you to dispute all the information on your credit report, even that information which is correct, you should not use that company’s services. It is only legal for you to dispute inaccurate information on your credit report.
Even though many people have educated themselves on the laws concerning credit repair, there are still some companies that have become smart enough to scam people. The good news is that you can recover any damages that you have received as a result of a credit repair agency’s noncompliance with the Credit Repair Organizations Act. There are several steps that you can take in order to file a grievance with a credit repair company. Even if you did not suffer from any financial loss, it is still important that you report the company to the proper authorities to prevent the loss of others.
You can report the credit repair agency to your local law enforcement agency. Filing a police report will give you the proof that you need in order to show that the agency did not abide by the law. You can also report the agency to its state law enforcement agency. You can also report the fraudulent behavior to your state attorney general and the attorney general of the state where the credit repair agency is located.
You are strongly encouraged to report fraudulent activity of a credit repair agency to the Federal Trade Commission. While the Federal Trade Commission is not able to enforce legal action on the credit repair agency for a single incident, it can, however, enforce the laws for repeat violations. You can contact the Federal Trade Commission through their website www.ftc.gov or via phone at 1-877-FTC-HELP.
Under the Credit Repair Organizations Act, you are entitled to compensation for actual damages, punitive damages, and attorney fees should the court determine noncompliance by the credit repair agency.
If you believe that a credit repair agency has not been operating under the Credit Repair Organizations Act, seek legal assistance in order to retrieve any damages that you received.
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