Fighting, and Winning, Against Shady Credit Repair Companies

Our client paid a credit repair company called Zenith Credit Services $1200 to provide debt consolidation and credit repair on their debt. Zenith promised it would help them consolidate their outstanding debt and pay it off at a lower rate, causing less damage to their credit.

Zenith asked our client for payment in advance, and then proceeded to do nothing to help them. We sued, charging that Zenith had violated the law when it took advantage of our client.

Under the CROA (Credit Repair Organizations Act), credit repair companies are prohibited from asking for payment in advance, and prohibited from giving untrue or misleading representations
about their services.

After a battle in court, the defendant Zenith Credit Services agreed to an offer of judgement, paying our client $5,000.

Unfortunately, the credit repair industry is full of scammers and shady companies that prey on people trying to improve their credit. The best way to protect yourself against these
unscrupulous "credit repair" companies is to know your rights.

The Credit Repair Organization Act (CROA) makes it illegal for credit repair companies to charge you before they perform their services.It also requires them to explain:

-your legal rights in a written contract that also details the services they'll perform-your three day right to cancel without any charge

-how long it will take to get results-the total cost you will pay-any guarantees

Some warning signs of a credit repair scam are if a company:
-insists you pay them before they do any work on your behalf

-tells you not to contact the credit reporting companies directly

-tells you to dispute information in your credit report

-even if you know it's accurate-tells you to give false information on your applications for credit or a loan

-doesn't explain your legal rights when they tell you what they can do for you

If you have experienced a similar situation in which a credit repair organization asked you for advanced payment or misrepresented its services to you, please contact Kazerouni Law Group for a free consultation.

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