For those who are searching for assistance with their less-than-great credit score, credit repair is certainly an option to consider. However, before working with just any company that promises to help improve credit scores and dispute discrepancies on a report, it is important to determine whether or not a particular company is operating within the boundaries of the law. What many individuals with bad credit don’t realize is that repairing their credit is legal 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 and not permitted to do when it comes to fixing credit scores and eliminating debt. Take a look at some of the important stipulations that these companies are required to adhere to by 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. It is typical for these contracts to include a description of services to be performed, payment for these services and time frame for completion.
• Repair organizations are never permitted to ask for payment prior to 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 their 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 never be misrepresented. This means that the services provided by the company must be 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.

Any individual who is looking to work withuse any credit services should first gain some insight into what the Credit Repair Organizations Act explains as the restrictions of the repair companies and the rights of the individual seeking for their services. There are a number ofscam credit reparation companies that exist, 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.