The Credit Repair Organizations Act, which was passed in 1996, protected consumers against credit repair companies who charged consumers and falsely promised to remove negative but accurate items from their credit reports or dramatically improve their otherwise-low credit scores, which were based on accurate information.
If you hired someone to fix your credit or were approached by someone offering credit repair services, you should know you have some rights and protections afforded to you under the Credit Repair Organizations Act (CROA). In addition to the Credit Repair Organizations Act, there are several other laws that govern what companies can and cannot do to fix your credit.
This part helps ensure that shady providers and fraudsters can’t trick you into waiving your rights. Companies violate the law if they make any attempt to get that kind of waiver from you, and even if they do, it’s going to be considered invalid because of this part of the Act.
So, contracts that don’t comply with all parts of the Act are also considered void and cannot be enforced.
Additionally, if states have specific laws further regulating the credit repair companies operating in the State, or if they feel state residents are facing violations of the CROA, the State’s Attorney General or chief enforcement officer may file suit on the consumer’s behalf. You may be able to report violations to the Consumer Financial Protection Bureau, to the Attorney General of your State, and bring suit within your State. If you have tried contacting your credit bureaus before and you are still having problems, you can complain to the Consumer Financial Protection Bureau.
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