 TITLE: How Do Credit Repair Companies Work? CONTENT: The Credit Repair Organizations Act\n-----------------------------------\nThe federal Credit Repair Organizations ([CROA](;num=0&edition=prelim)) Act not only defines what a credit repair organization is but also how these companies must operate. Enacted in 1996, CROA clearly articulates what credit repair companies must do, and must not do, to remain compliant with federal law.\nPractices that are not allowed under CROA include:\n*   Advising credit repair customers to make false statements to credit reporting agencies\n*   Advising credit repair customers to change their identification to prevent the credit bureaus from associating them with their credit information\n*   Charging credit repair customers any fee for services that have not been fully rendered\n*   Guaranteeing that they can remove information from their credit repair customer's credit reports\nThe CROA also requires credit repair companies to notify their customers of the following:\n*   They have the right to dispute their own credit report information for free\n*   They can sue the credit repair company if they violate CROA\n*   That while the credit bureaus must maintain reasonable procedures to maintain the accuracy of credit information, mistakes may occur\nCredit repair companies are not allowed to hide the above notices within the language of their contracts. These disclosures and others must be provided in a separate standalone form. And finally, credit repair companies are not allowed to force or entice you to sign a waiver whereby you would give up some or all of the aforementioned rights. Any attempt to do so would be a violation of the CROA. END