If you are facing bad credits than credit repair companies are the best that can help you improve your credits. There are many credit repair companies or service advertisements informing you their expertise in helping you get over bad credits but then most of these are dishonest about their dealings. They are out there to fill their pockets with your money.
Know your credit repair rights:
The Credit RepairOrganization Act came as a protection to consumers who have fallen prey to these Credit Repair Companies. This act helps the gullible consumer to decide how to use credit repair companies or services along with knowing their rights and how to pay these credit repair companies.
Basically you pay the credit repair organization money and they in turn help you out by improving or repairing your credits. Certain finer points that you need to know about these companies is that it cannot advise you to lie about your present status regarding your credit history to your creditors. Make you pay for the service they have not rendered to you; they are not entitled to alter your employer identity number.
This act further requires these companies to provide you with complete knowledge regarding the “Consumer Credit File Rights under State and Federal Law” so as to help you obtain all the required credit reports. It further helps you to take legal action against the company if they are found violating the CROA rules.
Procedure to procure Credit Repair companies services: Need to sign an agreement or contract, amount that you need to pay them for their service, estimated time limit that will be needed to improve your credits and finally that you are fully eligible to cancel this agreement within three working days in case you are not satisfied with their service.
No cancellation fee is to be charged if you have cancelled this contract within the stipulated time period as stated in the agreement and the most important thing is that a notice of the cancellation form should be attached at the time of filling in the contract so that you can use this form for cancelling your contract in case need arises.
Finally if you find that the law has been violated you can sue the credit repair company for the damages and report this to your state attorney or FTC or file a legal case against them.