Credit Repair Organizations Act

The Credit Repair Organizations Act (CROA) is a federal law that was enacted in 1996 to protect consumers from fraudulent and abusive practices by credit repair organizations. This act requires that all credit repair services must have the consumer’s written consent before they can charge any fees, and it also requires them to provide a written contract that outlines their services and the estimated cost of those services. Additionally, the CROA makes it illegal for a credit repair organization to make false claims about their services or to charge upfront fees for their services.