CIC endorses the opinions of the Federal Trade Commission (FTC), particularly in regard to their views concerning credit repair agencies. These regulations are generally in place to protect both consumers and merchants, but the past few years have seen an increase in credit repair agency regulations due to increased consumer complaints.
The FTC’s concerns regarding credit repair agencies address the unethical individuals who have taken advantage of the rising demand of credit restoration by posing as credit repair companies on the Internet or via telemarketing, making promises they either couldn't keep or never intended to keep, and/or charging fees up-front and then vanishing after providing minimal and inadequate services – if any services at all. Several of these agencies encourage consumers to use unethical and even illegal tactics to clean their credit reports. In some cases, credit repair agencies attempt to disguise themselves as credible law firms to falsely persuade you that you have retained licensed professionals.
In an attempt to discourage these unscrupulous credit repair opportunists, the government has imposed strict regulations on credit repair agencies. Overall, these regulations are a positive step towards protecting consumers from disreputable credit repair agencies. Unfortunately, disreputable credit repair agencies continue to exist on the Internet awaiting to be discovered by regulatory agencies and extinguished. To avoid their scams, you, as a potential consumer, should be wary of any credit repair agency that won’t provide their complete address (beyond a Post Office Box), fully identify who they are (including a verifiable identity), or demand large fees in advance of services rendered.
Consumers should be wary of any credit restoration service provider that appears to be a law firm, yet fails to provide the full name(s) of its attorneys or to clearly identify the state(s) in which they are licensed to practice (a closer look may reveal that these credit restoration service providers are merely credit repair agencies in disguise). At CIC, we take our practice of Credit report repair very serious and strive to fully comply with the spirit of all applicable state and federal regulations at all times. No exceptions.
