For those of us who need help with a less than ideal credit score, credit repair is a definite an option to consider. However, before working with just any company, it is important to determine whether or not a particular company is operating within the boundaries of the law.

Repairing your credit is legal but only when it is done within the confines of the law as dictated by the Credit Repair Organizations Act (CROA). This federal act deems fit what credit reparation companies are permitted to do in regards to fixing credit scores and eliminating debt. Below are a few of the most important stipulations that these companies are required to adhere under the (CROA).
- A clear and detailed contract must first be received by the individual seeking credit repair services prior to any repair company performing services for them. Typically, these contracts include a description of services to be performed, payment for these services, and a time frame for completion.
- Repair organizations are not permitted to ask for payment before providing service to an individual. Any company that asks for upfront payment for their services should be shied away from, as these could be potential scams.
- Companies should never alter the identity of their users or attempt to illegally alter any credit history. All reparation services should be performed within the confines of the law, never misrepresenting the client or their history.
- Services that are provided to an individual by a credit reparation company can not be misrepresented. This means that the services provided by the company must be only those that are discussed with the individual seeking their services, no less.
- Repair companies who attempt to misrepresent or lie about an individual’s credit history are breaking the law.
If you are looking to work with any credit service, you should first gain some insight into what the Credit Repair Organizations Act lists as restrictions of the repair companies as well as the rights of the individual seeking their services.
There are a number of scam credit reparation companies out there, so it is important to be aware of the legal restrictions placed on the type of service you are looking for. If for any reason a company is not operating within these specific stipulations, the individual should certainly report them to their state attorney general.