DON’T BREAK THE LAW! Check Out This CROA Overview

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CROA Details

So… here’s some of the details of the law:

#1 – Don’t make deceptive claims
Do not make false representations or guarantees. It is important to understand there are no guarantees involved with Credit Repair. Just like in a court of law, an attorney could never guarantee a client that the judge or jury would find in their favor. It is also important that you do not lie or misrepresent your credit repair services. Honesty is the best approach. If you want to make claims about how successful your services are, give actual statistics and examples of what your other clients have experienced. “Our average clients see 4 – 10 items removed in 90 days” is a great way to pitch your service. Remember, you don’t have to lie or deceive to sell your service. The largest credit repair organizations out there are still in business because they are truthful.#2 – Ask your clients which items to dispute
The second biggest violation credit repair companies make is disputing items that are known to be accurate. Although it is a rare thing to find credit reports “completely accurate” across all three credit bureaus, if the client indicates that “yeah, that is right” then you better leave that item alone. As Brad Elbein, Director of the FTC’s Southwest Regional Office says “no credit repair company has the right to remove accurate, current information from a credit report.” Stick with disputing items the client instructs you to. This is as simple as taking 10 minutes to run over the credit report with your client. Using DisputeSuite.com, you can input customer instructions, such as “My payment was never late”, into the software for each item.#3 – Provide consumers with their rights
As a credit repair organization, you must provide a copy of the “Consumer Credit File Rights Under State and Federal Law” before you have your client sign a contract. You must also inform your client that they have a right to cancel your contract. Visit http://www.ftc.gov/os/statutes/croa/croa.shtm to get a copy.

#4 – Make sure you have a contract in place
If you don’t already have one in place, you must get a contract in place immediately. Make sure your contract hits these talking points:

  • The payment terms for services, including their total cost
  • A detailed description of the services to be performed
  • Any guarantees or refund policies (if offered)
  • Power of attorney   
  • The expected time it will take to achieve results (use estimates)   
  • A copy of the FTC’s “Consumer Credit File Rights”
  • A cancellation notice (in bold font). Clients have 3 business days afterwards to legally cancel.
  • Your company’s name and business address

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