What is the Credit Repair Organizations Act?
The Credit Repair Organizations Act, or (CROA) as it is referred to, is actually Title IV of the of the Consumer Credit Protection Act. Passed in 1996, the statute governs and ensures the best business practices of credit repair organizations. CROA’s intention is to require that credit repair organizations fully inform consumers about their options and legal rights.
Under CROA, all consumers must be provided with a written contract by the credit repair organization that shows:
A detailed description of the services to be rendered
Payment Terms
The name and main business address of the credit repair organization.
The consumer must also be provided with a copy of the “Consumer Credit File Rights Under State and Federal Law” prior to signing any agreement. A three day “cooling off” period is required after signing any agreement.
The consumer should also be made aware that he/she has the ability to dispute inaccurate and erroneous credit report items, order tri-bureau credit reports and hold credit repair organizations accountable for violations of CROA. Credit repair organizations are not permitted to guarantee the removal of negative credit listings but merely the attempt to do so. Fees should be collected only after any promised services are rendered. Ultimately, Congress passed CROA so that consumers would not have to bear the burden of time consuming credit disputes.
Cloud Credit Solutions strictly follows CROA and protects consumers rights ensuring that creditors are following the Fair Credit Reporting Act and Fair Debt Collection Practices Act.
