Consumers should check their licensing information to determine whether a credit repair company in Georgia is legitimate. Licensed credit repair companies must provide a written agreement before performing any services. These agreements must contain a three-day cancellation policy and a detailed service description. Additionally, credit repair companies in Georgia must provide their business address and name in the contract and a written explanation of their services and processes.
Another factor to consider is the state statute of limitations. Georgia has a statute of limitations for filing formal criminal charges. This is designed to protect consumers and prevent unscrupulous companies from continuing to operate in the state. The law also prevents consumers from being harmed by credit repair companies that do not have the appropriate credentials.
To avoid pitfalls associated with credit repair companies, consumers should look for companies that charge up-front for their services. Many companies charge a high application fee and require a deposit in a bank account. This type of service is not recommended for everyone. Some states, such as Georgia, require that a surety company bond the credit repair company to protect consumers.
Before starting a credit repair business, a credit repair company should seek advice from an attorney in the state to protect itself from lawsuits and regulatory violations. A case could hurt the company financially and could tarnish its reputation. For this reason, it is essential to learn as much about the state’s credit repair laws as possible.
The state government regulates Georgia’s credit repair laws. However, no nonprofit organizations or lenders can provide these services. However, attorneys, real estate brokers, and registered financial advisors can provide professional advice. A business cannot offer credit repair services if a state agency does not regulate it.
Under the Fair Credit Reporting Act, consumers have the right to know what their credit report says and to challenge inaccurate information. The Act also provides a fraud alert process, which helps consumers prevent fraudulent activity. It also provides a method to repair credit and resolve disputes. Disputed information must be verified within 30 days.
If a credit repair company has a reputation for bad service or poor service, prospective clients will be wary of it. In addition, credit repair companies should never assume that their clients understand how the process works. Some clients may be completely new to credit repair services, so ensuring expectations are within state regulations is essential.
