It can be very seductive to hear someone tell you that they can solve all your debt problems if you just sign your name on the dotted line. And that is the large part of the allure of credit repair agencies that operate across the U.S.
The unfortunate reality, however, is that even though they pitch a good game, when it comes to actually delivering on the promises that they have made, credit repair agencies have a reputation that is less than poor. In point of fact, not too long ago, their collective reputation was so bad that the federal government had to create the Credit Repair Organization Act in an effort to control some of the more egregious acts that these companies were practicing.
Specifically, the act sets up certain rules that these agencies must abide by in order to stay on the good side of the law. Since it has been enacted it has not eliminated all of the shenanigans of the agencies, but for the most part it has helped to protect consumers from many of the deceptive advertising practices of the past.
One nice feature of the law is that these agencies cannot take any payment from you before they have actually performed work on your behalf. Also, the law provides for a cooling off period after signing the contract. You have three days to change your mind and nullify the contract if, after you think it over, you decide that it is not for you.
Credit agency pitches can be very persuasive. The goals of these credit repair agencies is to sell their services. And they have superior salespeople, whose job it is to do just that. So it is not at all unusual for a salesperson to convince someone who walks in the door to sign an agreement after hearing all of the good things that the agency can do for them.
In truth, a credit repair agency is rarely needed. Anything a credit repair agency can do, you can do just as well on your own. But it takes hard work and a lot of negotiation with creditors. Many consumers flock to credit repair agencies because they simply hate dealing with creditors and they hate negotiating.
If you are one of these people, then it can be well worth it to deal with an agency. Just be sure that the company that you are dealing with has a good reputation and is honest with you about what it can do.
Before signing with any agency, you should do two things. Contact the office of the Attorney General in your state to satisfy yourself that they have no legal actions against them. And, ask the agency for references of people with whom they have worked to reduce debt. And call these references to find out their experience with the company.
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