5 Warning Signs of a BAD Credit Repair Company in San Antonio

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We hear from clients on a daily basis the horror stories of person after person being ripped off while trying to sign up for credit repair in San Antonio and in Austin where our local offices are located. We hear everything from $200- $2000+ in money that is lost mostly due to the fact that nothing was done in advance to prepare for a meeting and to ensure that the clients were talking with reputable credit repair firms.

Here are a list of 5 warning signs to be aware of when talking with a potential person or company that you may consider hiring for credit repair services.

1. The company is not registered with the Secretary of State as a Credit Services Organization.  A simple search can be done at this site here: https://direct.sos.state.tx.us/cso/csosearch.asp to determine if an organization is properly registered or not. If they are NOT- run the other way.

2. The company does not have you sign any documentation to enroll.  Another red flag is if the company does not have a contract and specifically a contract with 2 key things in it: a right to cancel within 3 business day’s form, and also the “Consumer Rights Under State and Federal Law” disclosure, both of which are legal requirements for ANY and ALL credit repair companies under CROA.

3. The company charges up front. A key warning sign is a company wanting you to pay up front for credit repair. The Credit Repair Organizations Act or CROA for short, specifically states that “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. 

4. Guarantees of certain score outcomes or deletions.  Credit Repair companies are prohibited from giving any guarantees of a certain score outcome or guaranteeing that a certain item will be deleted. Both of these scenarios are very difficult to predict due to the fact that the decisions lie with the bureaus and the credit scoring companies. Be leery of someone promising to get you a certain credit score.

5. Promises to wipe the slate clean. There have been and still are so called companies that will promise to erase a person’s credit report completely- this is a complete and total lie. Under the Fair Credit Reporting Act it is possible to remove items from a report that are inaccurate, incomplete, or cannot be verified. This does not mean that it is possible to erase everything- only the items that fall into one of the 3 previously mentioned categories.

If you are looking for information regarding your credit and would like to deal with a company that operates within the guidelines of CROA- Credit 360 Consulting is the company for you. Please request a free consultation from us by clicking on the button below.

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Posted on by Marco Salinas in Compliance, CROA, Education, San Antonio

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