Is Credit Repair Legal in All 50 States?
Understanding the role states play in credit repair.
The act of repairing your credit is 100% legal in all 50 states. In fact, you have a right to do it according to federal law. The Fair Credit Reporting Act protects the right of every consumer to ensure the accuracy of the information shown in their credit profile.
And not only that, you are also completely within your right to retain professional assistance to make the disputes required to remove mistakes and errors through the credit repair service. But that doesn’t mean that anybody can just offer credit repair to clients in all 50 states.
The info below can help you understand why services need to be offered by state-licensed practitioners. If you want to connect with a credit repair professional who’s licensed in your state, complete the form or call us to get started.
Why credit repair is state-specific
Credit repair is a process that is defined by federal regulations, like CROA. As a result, since credit repair treads into the territory of a legal service at certain points in the process, it requires legal representation for the professional to act on your behalf.
Fact: If a credit repair company violates CROA, you have five years to file a suit.
Legal representation means you need a state-licensed attorney. This isn’t required for ALL of the process, but certain steps make it necessary. As a result, you can work with national credit repair companies, but at a certain point they will have to refer you to an attorney in your state to move forward through the process.
State credit repair regulations
Like most laws, federal law provides overarching protections of every American consumer. At the same time, many states have their own regulations for credit repair services that are offered in that state.
Some states require the company to be bonded to work for clients in that particular state. Other states establish more specific systems for when fees can be assessed and prohibited acts that credit repair companies can’t engage in without breaking the law. Disclaimers and disclosures that are legally required can also be set by the state, as well as standards for advertising and making claims during sales calls.
So again, a national service really has to work with state-licensed and bonded representatives to really offer you the credit repair you need.