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The Credit Repair Organizations Act (CROA) And You
By: Jeanette Joy Fisher iSnare Expert Author
If you have negative information in your credit file, as reflected by the Big
Three reporting companies, Experian, Equifax, and TransUnion, proves to be
accurate, there is little you can do about it. Only the passage of time will
guarantee that information's ultimate removal from your file. The reporting
companies will generally list negative credit information for seven years, and
bankruptcy information will remain on your report for ten years. The time limits
generally begin being counted from the time the event initially took place.
There are other limitations, as well, such as unpaid judgments against you.
Those can be reported in your credit file either for seven years or until the
statute of limitations for that particular type of judgment expires, whichever
is longer. However, there are no limitations as to how long criminal convictions
may be listed. The same is true for information that was reported due to your
applying for employment that would pay more than $75,000 a year, or because
you've applied for credit or life insurance in excess of $150,000.
If you decide to seek professional help, the Credit Repair Organizations Act (CROA)
has clearly detailed your rights as a consumer. You must be given a copy of the
booklet "Consumer Credit File Rights Under State and Federal Law" BEFORE you
sign any legal contract with an organization. Your contract must be in writing,
and must clearly spell out all your rights and obligations. Of course, it's then
your duty as a diligent consumer to read all the documents you're given, and
then to ask questions if they contain anything you don't understand BEFORE you
sign.
The CROA contains a number of quite specific provisions designed to protect
consumers. The most obvious provision is that no credit repair company can make
deliberately false or misleading claims about the services they're capable of
providing to their clients.
There are a number of specific points that must be clearly addressed in a
contract with a credit repair company. The company's name, address, and contact
information must be included, the contract must specify the total cost for their
services, as well as a detailed description of the services they'll perform in
order to earn those fees. The time frame for the work's completion must also be
clearly specified, as well as any guarantees they may offer for their services.
You can't be charged up front for a credit repair company’s services, and you
can't be required to pay until they've performed all the services they initially
promised you in the written contract. Credit repair companies are also
prohibited from performing any services in your behalf until you have signed a
written contract and then have been given a three-day waiting period. At any
time during those three days, you have the right to cancel your contract with a
credit repair company without being required to pay any fees.
Don't let your difficult financial situation blind you to your rights under the
CROA. You have specific rights when it comes to dealing with credit repair
companies. Insist on them.
Copyright © Jeanette J. Fisher
About the Author:
Jeanette Fisher teaches six ways to build credit.
Free credit ebook "Credit Tips
for Mortgage Financing"http://worryfreecredit.com |
