The Credit Repair Organizations Act

The Credit Repair Organizations Act (CROA) is actually part of the Consumer Credit Protection Act. This federal law prohibits credit repair organizations from engaging in a variety of adverse actions, such as giving false or misleading statements or fraudulent behavior. It also prohibits them from being paid before any promised services to clients are "fully performed." Any services that a credit repair organization promises must be written into a contract which includes a detailed description of those services and the time frame in which they will be rendered. These organizations must also provide to the consumer a separate written disclosure which describes the consumer's rights before they enter into the contract.

Any credit repair organization that violates this federal law can be sued by a consumer to "recover the greater of the amount paid or actual damages, punitive damages, costs, and attorneys fees." The CROA can be enforced by the Federal Trade Commission as well as State Attorney Generals. The New York City Department of Consumer Affairs has published information on its website about how to spot credit repair scams from unscrupulous companies. These tips include such warning signs as the company promising to remove negative information off your credit report, requiring you to pay an upfront fee before they do anything to help you, or asking you to sign blank forms with personal information attached.

Bankruptcy and Debt Relief Law Firm in Long Island, New York

The need for credit repair often follows a financial meltdown where an individual cannot meet his or her financial obligations. Late payments and delinquent accounts lead to poor credit scores which will only get worse if a debt relief plan is not created and implemented. This situation can follow such adverse life events as a job loss, a medical emergency in the family, or a divorce or can merely be the result of poor money management. Whatever the circumstances, getting knowledgeable legal help about available debt relief options is vital.

Jacoby & Jacoby is a bankruptcy and debt relief law firm serving clients throughout the counties of Nassau and Suffolk. It is the largest firm of its kind in Long Island and has handled more than 15,000 bankruptcy cases. Its legal team has more than 50 years of combined experience in this area of law and focuses on helping you find the solution that is right for you. If you have become delinquent on your financial obligations, it is crucial that you contact the firm for a free case consultation to learn how an experienced attorney can help you. Get the legal advice and guidance you need to handle your debts and move forward into a better future.