Every year, tens of thousands of Michiganders hire credit repair companies. Most just want to be able to qualify to buy a car or a house and the only thing standing in their way is their credit score.
While some who choose to use a credit repair company achieve desired results, most find that they are simply not satisfied. Some even feel as if they have been ripped off. According to the federal government, the average consumer spends over $800.00 on credit repair services.
Here are four ways most credit repair companies violate Michigan law.
• Not performing all services within 90 days.
Most have no clue about this limitation. Even if there is merely an offer to perform beyond 90 days, that would also make the sale illegal. Many credit repair companies are interested in keeping you paying monthly fees for as a long as possible.
This 90-day limitation focuses the activities of legitimate credit repair companies on the most important disputes. These also tend to be the most legitimate disputes. By legitimate disputes I mean those that provide a valid reason for the basis of the dispute and include all available evidence in support of a consumers dispute.
They are factual in nature and not made for frivolous reasons. Sticking to factual disputes makes things better for everyone involved.
• Charging fees upfront.
Both federal and state law prohibits charging fees upfront prior to any services being rendered. Even though this is probably the best-known rule of all, I still see this being violated.
• If selling by phone, no charge to consumer until 6 months after results achieved.
Telemarketers selling credit repair services are required to comply with tighter limitations. Under the law below the earliest they could request or receive payment is six months.
First, they must demonstrate that the promised results have been achieved. Then they must provide a credit report issued more than six months after the results were achieved.
(2) Requesting or receiving payment of any fee or consideration for goods or services represented to remove derogatory information from, or improve, a person’s credit history, credit record, or credit rating until:
(i) The time frame in which the seller has represented all of the goods or services will be provided to that person has expired; and
(ii) The seller has provided the person with documentation in the form of a consumer report from a consumer reporting agency demonstrating that the promised results have been achieved, such report having been issued more than six months after the results were achieved.
• Poor review policies
This, for example, could mean a credit repair company that sends a dispute letter to a credit reporting agency without the consumer’s authorization.
Sometimes these companies just make up fake disputes without any review at all. These are just a few of the reasons credit repair companies violate Michigan law.
The good news is that Michigan has strong laws that support consumer rights. If you have experienced a violation of any of the above rules in the last four years, call me at 810-232-4344.
I might be able to get your money back. If you hire me, you don’t pay me. I get paid by the credit repair (or debt settlement) company. There is no risk to you in hiring me to attempt to resolve the matter without going to court.
“Mr. Campbell has successfully prosecuted those who would seek to take advantage of myself and others like me like a ravaged pit bull. A true workaholic, who I imagine probably spends too much of his personal life sometimes pondering and investigating subjects which pertain to finding justice for those who would otherwise get bullied by corporate dollars and deception. Either way, highly recommended.” Marvin H.
“I would trust Andrew with all of my friends and family because he has done a great job on all of my cases. He has assisted me in understanding when there was a question and never made me feel uncomfortable for telling him I did not understand something. He is understanding and always took the time to address any questions or concerns I had. Best attorney around in my opinion!” Rae L.