Complaints About Credit Repair Gurus & Specialists|Birmingham, AL
Note: This is an old article, but the message is just as valid today as it was then.
Credit Repair “Guru” Admits Intent to Break Federal Law in Press Release
A self-proclaimed “credit repair guru” with almost 10 years of experience in the “financial industry” just issued a press release in which he, technically, breaks federal law.
No link love for the guy, but if you want to read the PR go here.
So where is the illegality?
Technically, he breaks Federal law when he says the following:
The final and perhaps most important according to Diez has to do with a credit repair services’ guarantee. Diez tells consumers to “reject any credit repair service that isn’t willing to refund your investment if they fail to deliver the results they promised.” He warns that a guarantee that says, “We guarantee you’ll have a 720 score or we’ll keep working your credit for free until you do,” is as worthless as the paper it’s written on.
“That statement just means you don’t get your money back…ever. No one can guarantee you a score,” he explains. “The guarantee should state on your contract in plain English the kind of results expected, how long until you see them, and that you get your money back if they fail to deliver on either.”
But Scrub! He doesn’t seem to be violating the Credit Repair Organizations Act (CROA) because his guarantee is 100% refundable!
The illegality is not in the guarantee…it is in the advance payment of fees. The CROA prohibits the credit repair organization from charging anything prior to rendering the services. Specifically, section 404(b):
Payment in Advance.–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.
So in other words, Mr. Credit Repair Guru Guy, with all that experience, just broadcasted in his DAMNED PRESS RELEASE his intent to break federal law.