There are many online advertisers that offer legal credit repair services. However, have you ever stopped to think why they even have to mention the word “legal”. The mere fact that there is a distinction implies that there is an illegal form of credit repair. In this article, we will look at some things you need to look out for when trying to repair your credit score.

So is credit repair legal? Well, the answer to that is yes and no. There are ways to repair your credit legitimately, but these have been overshadowed by the vast amount of shady companies that have flooded the market with their services. These companies are committing criminal activities because they are breaking the CROA (Credit Repair Organization Act). The CROA is a Federal law that outlines what credit repair companies are permitted to do. A common tactic of these companies is to advertise that they perform legal credit repair, just like a legal credit repair company, but they are in fact just using this marketing ploy to draw in unsuspecting victims.

So what is legal credit repair? A legitimate credit card repair company will not offer any packages that seem too good to be true and they will absolutely operate within the realm of the CROA. A legal credit repair center will never charge you for services they have not yet completed. They will also inform you of your rights and help you to dispute inaccurate information contained within your credit report. You will also get a copy of your contract before you agree to the services and you will be able to cancel your contract within 3 days of signing it if you change your mind.

A legal credit repair company will not perform certain tasks that are barred by the CROA. These tasks would include asking you to create a new identify, asking you to waive the rights awarded to you by the CROA, and asking you to lie about credit repair services that the company provides. If you are working with a company that has asked you to do any of these things then you know that you are not working with a legitimate firm.

If you feel that you have been scammed by a credit repair company then you do have options. You can contact the Federal Trade Commission and file a complaint. The FTC will look into your case and decide on the appropriate action to make sure justice is served.