Stop! Don’t make your client sign those credit repair contracts before reading through this article first.
The biggest mistake you can make while engaging in any kind of contractual business with a client, as a credit repair agent, is providing them with an incomplete or inappropriate contract. Contracts are legally binding, which means that making and/or administering the wrong ones can get you in deep trouble.
Thankfully, the Credit Repair Organizations Act (CROA) provides legal guidelines for you to follow. It makes it mandatory for credit repair businesses like yours to include the following legal disclosures in their contracts.
1. Payment Amount Charges
Your credit repair company must include the full amounts to be charged for its services in the contract. This is what keeps a fraudulent and ill-willed credit repair company from charging their clients for some “additional” and unnecessary charges. As a credit repair agent, this will also help you keep track of your legal and financial records.
2. Itemized List of Services
The contract must contain a detailed and itemized list of all the services the credit repair company will provide the client in order to repair their credit score. It should also mention any and all guarantees promised by your company.
3. Tentative Completion Date
The credit repair consultants must provide the client with an estimated and tentative date of when the services will be completed. This helps the company keep itself in check and avoid delays in services.
4. Customer/Signee Rights
As per the CROA, a credit repair business client has the right to cancel their contract within a specified period of time. This period is typically 3 business days. If the client wishes to cancel their contract after the specified time has passed, then your company reserves the right to deny their request.
5. Identifiable Information
For legitimacy and identification purposes, the act also requires the credit repair company to mention its accurate physical address on the contract. This is done so that, in case of any concerns, the company can be directly approached.
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