Credit Repair Organizations Act

The Credit Repair Organizations Act (CROA) is a federal law designed to protect consumers from fraudulent practices by companies that offer to improve credit scores. Under this act, these organizations must provide clear information about their services, including any fees charged and the expected outcomes. They cannot make false claims or charge fees upfront before services are rendered. Consumers have the right to cancel any service within three days of signing a contract, ensuring they have time to reconsider their decision. The act aims to promote transparency and safeguard consumers in the credit repair process.