Posted by: thecreditmaven | August 4, 2008

Is Repairing Credit Legal?

Credit Repair Organizations Act – Title IV of the Consumer Credit Protection Act (Public Law 90-321, 82 Stat. 164) Sec 402a reads as follows: 


“Consumers have a vital interest in establishing and maintaining their credit worthiness and credit standing in order to obtain and use credit. As a result, consumers who have experienced credit problems may seek assistance from credit repair organizations which offer to improve the credit standing of such consumers.”

The Credit Repair Organizations Act was passed to govern credit repair advice and credit repair services that are facilitated by a third party. If providing advice and services were illegal, then there would be NO LAWS governing how to provide credit repair assistance within the boundaries of the law.

Wouldn’t you agree?

Can an individual repair their own credit? ABSOLUTELY. Why would I need a credit repair organization to do it for me? Please ponder the following questions:

  1. Have you read the “Fair Credit Reporting Act”in its entirety?
  2. If you have, do you fully comprehend the language and resulting power it gives you as to the credit bureaus and creditors accountability for the information that is on your credit report?
  3. Do you know the correct processes which are needed to dispute information on your credit report?

The Federal Trade Commission (FTC) enforces the varioius laws as they relate to Credit Repair Organizations and the Credit Bureaus (Equifax, TransUnion and Experian). It seems that there are problems on both sides of the fence.

When you have some time, go to Google and perform the following searches:

  • Credit Repair Company lawsuits
  • Equifax lawsuits
  • TransUnion lawsuits
  • Experian lawsuits


On the Credit Repair Organizations side, the FTC is finding problems with many companies that are not operating within the boundaries of the law. However, there are some reputable companies, some “wannabes” and some that shouldn’t be in the credit repair business at all.

Likewise, on the other side of the fence the FTC and many consumer groups have found problems with how the three credit bureaus are operating under their set of governing laws.

Look at it this way – The credit bureaus collect data on consumers and businesses. They earn revenue by selling this data and other additional services to consumers and businesses for a fee. At the same time, the credit repair companies are earning revenue by providing services to consumers that effectively improve their credit. Why do consumers need to improve their credit? Refer to my earlier post “What’s so important about a credit score”.

My mother always told me to be careful who I associated with. We can’t really choose which credit bureau we associate with because all three have information on us. In the case of credit repair companies, be sure and do your homework. As I said earlier, an individual can dispute information with the credit bureaus. But don’t be surprised if the results you receive aren’t what you expected, frustration becomes a problem when dealing with all three bureaus and you spend your valuable time working on this when you could be spending time on something else more worthwhile.

If you needed to have a root canal done, you wouldn’t do it yourself? If you needed to fix the transmission on your car, you wouldn’t do it yourself would you?

If you need credit repair advice and assistance, seek out those who know what to do, how to do it and let them take care of it for you. Once you have your credit report “in shape”, do everything humanly possible to keep it that way.

Oh, and don’t forget to go to the dentist for those checkups and keep that preventative maintenance up-to-date on your vehicle.



  1. I agree that sometimes if you want something done right, you just have to do it yourself. Great article!

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