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Legal enforcement is here.
Majority of industry is not in compliance.
The credit repair industry is undergoing some major changes right now and we’re seeing that the majority of companies are not observing federal consumer protection laws.
It appears all companies that repair credit are violating the law.
The government is aggressively going after them.
This affects everyone.
Why the change?
The industry has an abusive past. The government is reacting to consumer harm.
As with any consumer protection law, it starts with harm to consumers.
Specifically in this case, credit repair companies making empty promises over the phone in order to get a sale but then not delivering.
The Federal Trade Commission (FTC) has recognized that phone calls are where the majority of fraud/misunderstandings start and credit repair companies can hide behind their calls as there is no written record of what they promised over the phone.
As a result, the FTC and the Consumer Financial Protection Bureau (CFPB) have decided to begin enforcing a rule that has been on the books for quite some time.
The rule requires companies to present their agreement and promises in writing before a transaction occurs.
This rule addresses the issue of credit repair companies talking to clients over the phone before presenting them with an agreement.
This allows consumers to look at the promises objectively without the pressure or hard sell of the company.
Further, a transparent, written record allows consumers to hold companies more accountable.
What this means for you.
You’re at risk of working with a non-compliant company.
If companies are not making an effort to switch to a model that observes this law, they present risk to consumers as their services are not compliant, which is an enormous red flag.
The FTC and CFPB have been shutting down and fining companies violating the law.
It’s important for consumers to be vigilant and work with companies who take all consumer protection laws seriously.
How to proceed.
Where can you find compliance and protection?
Moving forward, consumers looking to hire credit repair services should use an escrow platform like Credzu as it provides the protection needed and provides access to companies who are providing legitimate/compliant services.
Escrow ensures that companies aren’t paid unless they provide the services they promised in writing and the Credzu platform allows for written communication before agreements are signed.
Once agreements are signed, clients can safely speak with credit repair companies.
Come with us!
We are joining Credzu and will provide our services to you through it.
We have begun transitioning into the Credzu platform so that we can be compliant and provide our world-class service to you and others while at the same time protecting your money with Credzu’s escrow-powered platform.
It’s a smart move for us, for compliance.
Its a smart move for you, for protection.
Sign up for our tradelines protected by escrow through Credzu.com