State Sues to Shut Down Credit Repair Business

The Asbury Park Press has reported that a credit reporting company in Howell NJ has been sued by the State. According to the story, the name of the company is United Credit Adjusters. It is alleged that they accepted fees and failed to perform the represented services. The complaint also alleges that they were misrepresenting the effects of bankruptcy filings and representing that they could reduce credit card debt by almost 50%!

This story must be filed under the heading “if it is too good to be true it probably is.” There are very fully reviewed in this economy strict Federal regulations and Statutes governing credit repair that should be carefully reviewed.

The most important thing to remember is that no credit repair organization is permitted to charge in advance of services performed.

Section 404
(b) Payment in Advance.–No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed.

There is also a right to cancel under the Federal Statute.

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