Sometimes, consumers can also get help from a credit repair company to resolve their issues with the agencies. This can help them avoid experiencing negative consequences from their reports. Unfortunately, there are instances when credit repair companies can mislead their customers. For instance, they might overstate the scope of their services or misrepresent their prices.
To better understand how the CROA is critical in protecting debtor rights and ensuring they’re treated fairly, here’s an example:
Consumer Protection Law:
This Act, Title IV of the Consumer Credit Protection Act, prohibits untrue or misleading representations and requires certain affirmative disclosures in the offering or sale of “credit repair” services. The Act bars companies offering credit repair services from demanding advance payment, requires that credit repair contracts be in writing, and gives consumers certain contract cancellation rights.