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Credit Repair Organizations Act (CROA) Definition

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What Is the Credit Repair Organizations Act (CROA)?

The Credit Repair Organizations Act (CROA) is a piece of consumer protection legislation that regulates the behavior of companies offering credit repair services. These companies charge customers a fee to help them improve their credit scores. Typically, this is done by disputing false and negative information contained on their report.

Although such services could be helpful for consumers, the CROA aims to prevent misleading advertising, such as exaggerating the extent of the improvement likely to be obtained.

Key Takeaways

  • The CROA is a consumer protection law that regulates credit repair companies.
  • These companies contact credit reporting agencies on their customers’ behalf, in order to help improve their credit ratings.
  • In the past, some credit repair companies would overstate their services, taking advantage of unsuspecting customers.

How the CROA Works

The CROA is one of many pieces of legislation designed to protect consumers in the United States from abusive or misleading business practices. In particular, the CROA forms part of the broader Consumer Credit Protection Act of 1968, and was drafted in response to the actions of some unscrupulous credit repair companies.

Companies in the credit repair industry help consumers by advocating on their behalf, communicating with credit reporting agencies in an effort to have negative information removed from the customer’s credit report. In some cases, these customers may have been victims of fraud, such as when a credit card or identity thief racks up significant purchases using the victim’s credit card. In these instances, the customer may be able to explain the situation to the credit reporting agency and reverse some of the negative effects on their credit score. If the customer does not have the time or inclination to communicate with the credit bureau directly, they can hire a credit repair company to do so on their behalf.

Although in principle there is nothing wrong with this basic transaction, the trouble arises when credit repair companies misrepresent or overstate the extent of their services. For example, an unethical company might claim or imply that they are able to improve the customer’s score even if the items on their credit report are in fact truthful, such as in cases where the customer was not a victim of fraud but was simply spending beyond their means. In those instances, an unwitting customer might be duped into paying a significant fee for services that are of dubious value.

When considering these services, it is important for consumers to bear in mind that credit repair agencies have no special powers that the customers themselves do not have. Although they may succeed in having some erroneous or fraud-based issues stricken from the customer’s record, they have no ability to compel the credit reporting agency or to have accurate information removed. Thankfully, the CROA helps ensure that companies in this sector advertise their services in a clear and transparent manner. For that reason, it should be a simple matter to verify whether a firm is one of the best credit repair companies or simply attempting to pull off a scam.

Real World Example of the CROA

Kyle has struggled with credit card debts for many years, which has unfortunately caused his credit score to decline significantly. To make matters worse, he suspects that his score may have been negatively affected by identity theft. After all, some of the charges that appear on his credit card statements seem unfamiliar to him, making him wonder whether one of his cards may have been stolen.

To help address this problem, Kyle hires a credit repair company to advocate on his behalf. In communicating to the credit repair agency, he was told that they would carefully review his credit report and determine whether any of the negative information contained within it is inaccurate or attributable to fraud. If any such cases are detected, they would then contact the credit reporting agency and seek to have those items struck from Kyle’s record, in order to improve his credit score.

The agent from the credit repair company was careful to explain that, if he was so inclined, Kyle could also contact the credit reporting agency and perform this work on his own behalf. In other words, the agent made clear that the credit repair company had no unique powers, but was simply offering a service for the ease of convenience. He also provided upfront information about the company’s fees, while making it clear that they could not guarantee that any improvement to Kyle’s credit score would be achievable.

Kyle appreciated this transparency and diligence, and agreed to engage the company’s services. What he did not realize is that the credit repair company’s frankness in disclosing these facts was mandated by the CROA.

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Credit Repair Companies

Give yourself some credit (reports)

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Image courtesy FTC
Image courtesy FTC

By EMILY WU
Attorney, Federal Trade Commission

One important back-to-basics step you can take this Financial Literacy Month (or anytime) is checking your credit report. 

Your credit report has a summary of your credit history. For example, if you’ve been evicted and a landlord turns uncollected rent over to a collection agency, that might be on your credit report. Information in your credit report affects your credit score. That’s important because businesses — like insurance and phone companies — use your credit score to decide whether to give you a policy or service, and what rate to offer. And potential employers and landlords also might check your credit.

So you want to know that the information on your report is accurate. And if it’s wrong, you want to make sure someone didn’t steal your identity.

Here’s the plan:

Order your free credit report. Go to AnnualCreditReport.com or call 877-322-8228. Until the end of the pandemic, everyone in the U.S. can get a free credit report each week from all three national credit bureaus (Equifax, Experian, and TransUnion).

Read the reports carefully. Do you recognize the accounts? Do they list credit applications? Did you apply for credit at those places?

Spot mistakes. Fix anything that looks wrong (read more about how). But if it looks like someone else is using your credit, go to IdentityTheft.gov to report it and get a recovery plan.

Spot a credit repair scam. If a credit repair company asks for money up front, or tells you not to contact the credit bureaus yourself, that’s probably a scammer.

Look, it’s been a tough time, and it’s hard to get back on track. But you can take steps to rebuild your credit. Only time and a plan to pay off debt will improve your credit, but with free credit reports available every week, it’s a good time to take a small step towards recovery. 

. . .

The above information is from the Federal Trade Commission Consumer Information blog

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Credit Repair Companies

Introducing Oasis Credit Group, New York City’s premier credit repair company – Press Release

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Oasis Credit Group is a credit repair company, based in New York, that is proficient in erasing bad credits accumulated from terrible financial decisions whilst providing its clients with a first-class platform for business or personal growth.

Available statistics suggest that 43% of consumers haven’t checked their credit score in the last year. Meanwhile, VantageScore says there are about 220 million scoreable people and 68 million of them have bad or poor scores. Hence, Oasis Credit Group is aptly positioned with its services—the ability to remove all negative derogatory and delinquent accounts across all 3 bureaus.

“The first thing we do is obtain a 3B Credit Report which is one report from the 3 major credit bureaus. We will then analyze the entire report with the client on the line. We will go over each item that is on the report and figure out what needs to be done. Ex. dispute with the bureaus and/or furnisher, Debt Settlement with the creditor or collection agency, Adding positive accounts, etc. We do not sign up any client who wants to sign up. If we cannot help, we will not onboard the customer”, explained the company CEO.

Oasis Credit Group started as a small business funding industry where they observed the biggest reason for denial was someone’s credit score. “After figuring out a way to help people with their credit scores, we decided to move strictly to credit repair as we saw the number of consumers who can use our service AND the amount of business who can help as well”, explained a company spokesman.

Oasis Credit Group differentiates itself from other companies in the credit repair industry with a number of impeccable services including:

  • 100% Money-Back Guarantee
  • Flawless integrity
  • Sufficient experience with consumer, business, and mortgage credit
  • Full-time availability and customer support
  • Affordable fees, with NO long binding contracts.


Oasis Credit Group
offers a referral bonus as an incentive for any client referred to them.  “As mentioned above, we know what it likes to have a client declined due to credit. We are your solution. Refer those clients to us or any client you know can use our help and we will get them a better credit score AND you will get paid for the referral. We pay a residual commission for each active client each month.”

Perhaps, a pointer to the company’s proficiency is the rave reviews and customer testimonials from clients. According to a client, Gloria G.: “After working with 3 different credit repair companies I had 0 results after 2 years. I was on my last try and Abie was awesome from the first phone call. He didn’t promise anything that wasn’t possible and gave me an accurate timeline to reach a score of 650 so I can get my dream home. They were able to get the results I needed in 2 months! For anyone that has been struggling I strongly recommend you give Oasis a try they DELIVER!”

Media Contact
Company Name: Oasis Credit Group
Contact Person: Abraham Shalam
Email: Send Email
Phone: (646) 727-6985
Country: United States
Website: oasiscreditgroup.com



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Credit Repair Companies

Hope for individuals with negative credit listing – Press Release

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Professional Credit repair consultants explores the available options for those affected by economic distress occasioned by COVID 19 pandemic

With COVID 19 pandemic causing great havoc on the economy, individuals and business are grappling with effects of jobs losses and low business.  According to financial analysts, rate of defaults has hit a record high, with the number of people who are listed increasing in the past one year, and recorded figures being the highest in a decade. This has led to flurry of activities with credit repair experts exploring on solutions that can save people from further distress.

To avoid financial issues associated with negative credit listing, Intel Credit Consultants, a credit repair firm advises individuals and businesses to seek professional assistance on the options that are available to handle the negative items on their credit report. “A professional credit repair is in a good position to advise you on action you can take to repair your credit. You will be given the pros and cons of each of the option, helping you decide on the best way to proceed,” said a senior credit repair officer at Intel Credit Consultants while adding that some of the options may include, paying off, disputing, negotiating removal or settling.

“As your Credit repair consultants, we will review your full credit reports from the credit bureaus, we will monitor your credit information and ascertain what can be removed in line with Fair Credit reporting Act,” said the company representative while articulating how they help in credit repair.

Credit repair process starts with understanding the current situation. Credit report, according to the senior credit expert at Intel Credit Consultants will give the credit history of an individual or business. They will assist in analyzing the information, seeking to help the client understand what it means and how this affects them and their finances.

“We will help in preparation of the appropriate letters to both the credit bureaus and debt collection firms. We normally prepare letters which specifically address the credit information; our experience has shown us that doing general letter is not effective as they are mostly ignored by the credit bureaus. This is what sets us apart from the rest of the players in this sector and also helps us in quickening the process. To make sure that the letter gets to the targeted recipient we opt to mail them on your behalf,” said a senior expert in the firm while adding that they educate their clients providing them with information that will help them make informed decisions.

For more information visit: https://intelcreditconsultants.com/

About Intel Credit Consultants

Intel Credit Consultants is a credit repair company that puts its clients’ needs first making sure they are educated and well informed on every credit decision. The trustworthy and hardworking black owned business aims at helping its clients reach their full potential. Known for its highly skilled technicians, Intel Credit Consultants are one of the fastest credit repair companies targeting to see improvement in client’s credit score within a short time.

Media Contact
Company Name: Intel Credit Consultants
Contact Person: Media Relations
Email: Send Email
Phone: 866.990.7175
Country: United States
Website: https://intelcreditconsultants.com/



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