Your Rights When Dealing With Credit Repairers

• It’s illegal for credit repairers to accept advance payment, security for payment or to charge a fee unless their services cause a material improvement to the consumer’s credit file. For example, if an amount owed by one consumer appeared on the wrong person’s credit file, a correction of that information achieved through the efforts of the credit repair company would be a material improvement.
• It’s illegal for a credit repairer to represent that they can cause a material improvement to a consumer’s credit file before examining the consumer’s consumer report.
• Consumers have a 10-day cooling-off period, which begins from the time they receive a copy of the agreement that meets the requirements of the act. If the company fails to repay the money, the consumer can take the company to court.
• Credit repairers must provide the consumer with a written, dated contract.
• It’s illegal for credit repairers to make false or misleading claims. In reality, no credit repairer has the power to change or erase accurate information in a consumer’s file.

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