Credit repair is an option to consider when looking for help with poor credit ratings. But before working with credit repair services NJ that promise to get your credit back on track, it is important to do a background check on the company to determine whether it is operating within the law or not.
The first thing you ought to realize is that credit repair is quite legal as long as it is carried out according to the law as regulated by the Credit Repair Organizations Act (CROA). The federal act has laid out regulations and guidelines on what credit repair providers are permitted to do when carrying out their services. It also outlines your rights as a customer seeking for credit repair services NJ.
Here are some of the significant regulations that credit repair organizations should adhere to as stipulated in the CROA:
- The credit repair company should provide a clear and detailed contract before commencement of any services. The contract contains details including the description of services to be carried out, the company information, the payment details, duration of contract and more. You should be allowed to read the details of the contract before signing up with the organization. The company should be able to provide you with a copy of the Consumer Credit File Rights under the state and federal laws. The file has information about the consumer’s rights to access their credit report and dispute any inaccurate information thereof.
- Credit repair providers are not permitted to ask for payment before providing their services. Any organization that demands upfront payment for services yet to be rendered is a scam, and should not be considered.
- No credit repair organization offering credit repair services NJ is allowed to alter the identity or profile of their clients. Altering one’s credit history is illegal. All credit repair services are to be carried out within the guidelines of the law without misrepresenting the history of the client.
- An individual cannot be misrepresented by their credit repair provider. You cannot waive your rights to the company to allow it work the way it deems fit. It is the company that should work the way the client wants. The credit repair provider is to provide services as discussed with their client, and not vice versa.
- It is illegal for repair firms to attempt to misrepresent or lie about the credit history of their client. This is a crime, and they can be sued for breaking the law.
Anyone looking to engage credit repair services NJneeds to first read the Credit Repair Organizations Act and find out what the law says about credit repair services and the individual’s rights when signing up for the services. A good repair firm that operates within the constraints of the law will provide their client with a copy of the Consumer Credit File Rights to familiarize themselves with before entering into any agreement.
If you discover that your credit repair provider is not operating within the law, or is violating your rights as a consumer, the best thing to do is report them to the state attorney general or the Consumer Financial Protection Bureau.