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Hello, my name is Tim J Thrift Independent Agent and Qualified Field Trainer with
United Credit Education Services.
With the recent down turn in the economy and the credit crunch there have been many unfortunate cases where consumers have been taken advantage of and wrongly represented by Credit Repair Companies. Rightfully so the FTC (Federal Trade Commission) has began “Operation Clean Sweep” In which some 36 so called credit repair companies have been shut down.
As a result of this crack down I have come across much resistance from inquiring consumers about United Credit Education Services Credit Restoration and Education Program. The first question they ask. Is credit repair legal? My answer is YES it is legal and then I explain how it is legal. As a consumer you have a legal right to dispute any inaccurate, erroneous and obsolete information that is negatively impacting your credit score under the FCRA (Fair Credit Reporting Act).
You may Google the FCRA Fair Credit Reporting Act to read or visit the ftc.gov site. Warning this is an 80 plus page document full of legal jargon that will mostly likely put you to sleep. In addition to that I explain to them that United Credit Education Services is in full compliance with the CROA (Credit Repair Organization Act). The CROA is the act or law that mandates compliance of credit repair companies. The very law that is shutting down these credit repair companies who are wrongfully doing business. Below I have copied from the ftc.gov website to show example of this explanation of the CROA.
SEC. 402. FINDINGS AND PURPOSES.
(3)
(a) Findings.--The Congress makes the following findings:
(1) Consumers have a vital interest in establishing and maintaining their credit worthiness and credit standing in order to obtain and use credit. As a result, consumers who have experienced credit problems may seek assistance from credit repair organizations which offer to improve the credit standing of such consumers.
(2) Certain advertising and business practices of some companies engaged in the business of credit repair services have worked a financial hardship upon consumers, particularly those of limited economic means and who are inexperienced in credit matters.
(b) Purposes.--The purposes of this title are--
(1) to ensure that prospective buyers of the services of credit repair organizations are provided with the information necessary to make an informed decision regarding the purchase of such services; and
(2) to protect the public from unfair or deceptive advertising and business practices by credit repair organizations.
The second question I am getting is. Is it illegal to charge an upfront fee for credit repair service? Folks this is one area of this business that absolutely just makes me want to scream because of this reason. Any place you go on the internet such as ftc.gov and certainly the credit reporting agencies Trans Union, Equifax and Experian you will read that it is illegal to charge upfront fees for credit repair before any services has been provided. And it is illegal under the law to charge upfront fees. But here is what you will not be told or read unless you go directly to the CROA and read the law. I have provided a copy of the law from the ftc.gov site notice highlighted in below.
(B) does not include--
SEC. 403. DEFINITIONS.
(4)
For purposes of this title, the following definitions apply:
(1) Consumer. -- The term 'consumer' means an individual.
(2) Consumer credit transaction. -- The term 'consumer credit transaction' means any transaction in which credit is offered or extended to an individual for personal, family, or household purposes.
(3) Credit repair organization. -- The term 'credit repair organization'--
(A) means any person who uses any instrumentality of interstate commerce or the mails to sell, provide, or perform (or represent that such person can or will sell, provide, or perform) any service, in return for the payment of money or other valuable consideration, for the express or implied purpose of--
(i) improving any consumer's credit record, credit history, or credit rating; or
(ii) providing advice or assistance to any consumer with regard to any activity or service described in clause
(i); and
(B) does not include--
(i) any nonprofit organization which is exempt from taxation under section 501(c)
(3) of the Internal Revenue Code of 1986;
(ii) any creditor (as defined in section 103 of the Truth in Lending Act),(5) with respect to any consumer, to the extent the creditor is assisting the consumer to restructure any debt owed by the consumer to the creditor; or
(iii) any depository institution (as that term is defined in section 3 of the Federal Deposit Insurance Act) or any Federal or State credit union (as those terms are defined in section 101 of the Federal Credit Union Act), or any affiliate or subsidiary of such a depository institution or credit union.
(4) Credit.--The term 'credit' has the meaning given to such term in section 103(e) of this Act.(6)
United Credit Education Services does charge an upfront fee and has a number of flexible payment option in which consumers can pay for our credit restoration and education service. Currently UCES is compliant with
(i) any nonprofit organization which is exempt from taxation under section 501(c) and
(iii) any depository institution (as that term is defined in section 3 of the Federal Deposit Insurance Act) or any Federal or State credit union (as those terms are defined in section 101 of the Federal Credit Union Act), or any affiliate or subsidiary of such a depository institution or credit union. United Credit Education Services is a member of a CUSO (Credit Union Services Organization) and affiliated with a Credit Union. Therefore we can legally charge an upfront fee.
Even though I have shared this information in a blog my intent is to inform and protect our Independent Agent and the Consumer. What separates United Credit Education Services from other credit repair companies is the following.
Money-back guarantee!
Members of the BBB.
Outstanding deletion rate!
Monitor your file’s progress around the clock 24/7/365.
Testimonials from happy, satisfied clients.
100% compliance with the FTC and CROA Acts.
Tim J Thrift
248-830-4832
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