A Credit Repair Organization (CRO) is an organization (or and individual) that provides or offers to provide services improving a consumer’s credit record, credit history, or credit rating for a fee. A company can also be considered a CRO if it provides advice or assistance to a consumer on how to improve their credit.
Non-profit credit counseling organizations, creditors trying to restructure a consumer’s debt to it, and banks and credit unions are not CRO’s.
The Federal Credit Repair Organizations Act provides for very specific disclosure requirements before a CRO can provide services, including the need for a written contract, and a three-day right to cancel the agreement.
The following articles discuss the risks associated with CRO’s:
Credit Repair: Beware of Predators!
Credit Repair: What They Don’t Tell You
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