Did Your Debt Relief Company Break The Law?
For many people, debt reduction companies seem like a life line – offering to help consolidate debt, improve credit, and help finally get out from under the crushing load of debt. Unfortunately, for many consumers the very debt relief companies they turned to for relief took further advantage of them, failed to live up to promises, and left families further in debt than before.
If you’ve been misled, lied to, or treated unfairly by a debt relief company, it is important you know your legal rights. Kazerouni Law Group can help you understand your legal options, and will consult with you at no charge. If it is found a debt relief company did violate your rights, you could receive significant compensation.
The main statute protecting consumers from shady debt relief companies is the Credit Repair Organization Act – the CROA
There are five basic practices that the CROA outlines as prohibited under the law:
- A company can’t charge advance fees and must fully perform all services as they are paid for – the company has to be doing something in order to charge you any money.
- Companies can’t make false statements about a consumer’s credit score or creditworthiness to the credit bureaus or any creditor or lender (or the consumers, themselves). They also can’t advise you to make false or misleading statements.
- Companies can’t alter a consumer’s identity (or tell consumers to do it) in order to hide negative information and/or create a new credit identity. In other words, no taking on an alias to escape a bad credit rating.
- They can’t make untrue or misleading claims about the services they provide or what you can end up with once you’ve completed the service.
- They can’t act in any way that would constitute fraud.
If the debt relief company you hired to help reduce your debt left you in a worse situation than you started in, your rights may have been violated. At Kazerouni Law Group, we’ve helped thousands of people like you get compensation from the debt relief companies who ripped them off. Schedule a free consultation with us today!