A credit repair organization is a type of credit services organization. As consumer lending guidelines became more automated in the 1990’s, consumers began to develop a vital interest in ensuring the information contained in their credit reports was correct. Credit repair services grew rapidly in the 1990’s, but unfortunately a lack of consumer understanding about the credit industry allowed an environment of unrealistic and fraudulent promises to exist between credit repair organizations and customers.

In order to combat credit repair fraud, Congress passed the Credit Repair Organizations Act (CROA) on September 30, 1996. The CROA is part of the Consumer Credit Protection Act and is designed to prevent fraud and provide consumers with protection if the help of a credit repair organization is sought after. The CROA is a powerful tool to compel a credit repair organization to act within an ethical manner because failure to do so can trigger a violation of state and federal deceptive trade practice laws.

Congress found that a consumer like you has a vital interest in establishing and maintaining your credit worthiness and credit standing in order to obtain and use credit. As a result, a consumer such as you who might have experienced credit problems may seek assistance from a credit repair organization which offers advice or assistance to improve your credit standing.

Congress also found that certain advertising and business practices of some companies engaged in the business of credit repair services had been known to create a financial hardship upon a consumer such as you, but particularly one who has limited economic means and who is inexperienced in credit matters.

The purpose of the CROA is not only to ensure that you are provided with the information necessary to make an informed decision regarding the purchase of a credit repair service but also to protect you from unfair or deceptive advertising and business practices by a credit repair organization.

A credit repair organization like ours is not permitted to practice law; however, under the CROA we are permitted to provide you with advice or assistance which can help you improve your credit. The Fair Credit Reporting Act permits you without hiring a lawyer to dispute inaccurate, unverifiable, outdated, and potentially misleading credit information directly with a credit bureau by using consumer protection laws. Because we are allowed under the CROA to provide the advice and assistance you may need to help you improve your credit under the FCRA, we may legally use any consumer protection laws available to assist you with your formal FCRA credit dispute letters.

No credit repair organization can threaten to sue or engage in a lawsuit on your behalf against a creditor, debt collector, or credit bureau. If you feel the need to pursue legal action against a creditor, debt collector, or credit bureau after you have exhausted your formal FCRA dispute attempts you will have to find a lawyer to do so.

Many of our clients choose CMA Financial Corporation because we require that you review and sign each formal FCRA dispute letter which is sent out. This transparent processing allows you to build a file which you can later use should you decide to pursue legal action against a creditor, debt collector, or credit bureau.

The CROA only permits a credit repair organization to charge you once each service promised to you in your contract has been fully performed. It is important for you to know that the CROA also allows for each state to have credit repair laws which build upon the CROA.

The state of Texas allows a credit repair organization to charge money in advance of full completion of the services in your contract if the credit repair company not only is a registered credit services organization but also holds a $10,000 surety bond.

We comply with both requirements of Texas Law permitting us to charge you money upfront; however, we fully adhere to the retroactive billing requirement of the CROA. We only charge you upon completion of the promised credit services agreed upon in your contract.

The cost of credit repair can range widely from upfront fees starting at $99 up to over $1000. Monthly service fees can range from nothing to over one hundred dollars and the terms can range from six to twelve months. Our credit services provides the perfect balance of affordability and quality which you will need to repair your credit.

A consumer advocacy law firm which provides credit repair services is under a completely different set of guidelines than a credit repair organization. The CROA and state credit repair laws specifically exclude any law firm from being covered. Law firms are compelled to act in an ethical manner by the obligations imposed upon them from the local bar association.

A law firm may practice law, threaten to sue, and engage in suit with a creditor, debt collector, or credit bureau; however, this is not the usual method of repairing credit even for a law firm because the FCRA was designed by Congress to act as a filter between the consumer and the credit bureau and creditor to eliminate frivolous lawsuits.

The FCRA provides immunity from consumer lawsuits against a credit bureau and creditor which reports inaccurate, unverifiable, obsolete, and potentially misleading credit report information until you file a formal FCRA dispute against such information. Only then, under the FCRA, a credit bureau and creditor is only liable for negligent or willful non-compliance of the FCRA.

A law firm typically has to write the same type of legal-based FCRA formal dispute letter so the FCRA immunity against a credit bureau or creditor is lifted. An attorney can range in price from $150 to $400 per hour depending on the particular law firm and law practice.