Credit Repair Services and Information
Credit Repair and Debt Solutions Guarantees
Any legitimate company that is interested in working for
your credit restoration success should offer a comprehensive warranty and some
form of money back guarantee.
The details about any comprehensive warranty
should include these details. If the company has not corrected and/or removed
enough disputed/negative items from your credit reports, you should be entitled
to some or all of your money back. It is that simple.
They should declare
that any free credit evaluation or consultation requires no charges. If they
tell you it's free, they should clearly state it.
After six to twelve months of services provided, you should
be able to request an audit/evaluation of your account within 60 or so days
of your notice to cancel services. The value of all successfully corrected/deleted
items in your account should be calculated, and this number compared to the
amount of money you have paid the company. If the value of the corrected/deleted
items is less than the amount you have paid, they should refund the difference
to you. The total value of services rendered should be calculated in a fair
manner, such as the number of items successfully corrected/deleted being multiplied
by $40 or $50 per item. This $40 or $50 per corrected/deleted item is typically
the fair market value of credit repair services.
The
examples below demonstrate how a good warranty should
work.
Example A
A client starts with 10 negative items on their credit
reports. After 12 months, 5 items have been successfully corrected/deleted,
leaving 5 items remaining. The refund would be calculated as follows:
Assuming
your cost for 12 months: $800.00
Value of services rendered: $250.00
(5 deletions x $50.00/ea)
Amount you owe: $0.00
Amount you get back:
$500.00 (this often depends on the payment plan initially selected)
Example B
A client starts with 21 negative items on their credit
reports. After 12 months, the company has successfully corrected/deleted 18
items, leaving 3 items remaining. The refund would be calculated as follows:
Assuming
you cost for 12 months: $600.00 (6 months x $100.00/ea)
Value
of services rendered: $1800.00 (18 deletions x $50.00/ea)
Amount you owe:
$0.00
Amount you get back: $0.00
Example A demonstrates results
that are far lower than those results provided to an average client; however,
it provides a good illustration of how a good warranty works. Any warranty
should be there to reassure you that it is in a company's interest to successfully
restore your credit, but if for some reason they can't, it is the company's
duty to provide you a refund.
Important Note:
If you begin credit repair service with very
few negative items to be removed, such that if all items are successfully corrected/removed,
the value would not equal the warranty value, the company should
assign all negative items a new value. The new value should be equal to the total
of the fees you've paid, then divided by the number of negative items.
A good warranty is intended to reassure you that a company's
goal is to actually remove negative/disputed accounts form your credit
reports - not just talk about it! If the services are unable to remove these items,
they should be willing to refund your money. It's as simple as that!
Important Notice:
Legitimate credit repair companies should act
in full compliance with Federal Trade Commissions (FTC) regulations, as well
as the Credit Repair Organization Act. Therefore, by law, they cannot guarantee
any exact or specific outcome or result. Having said that, they should promise
to legally do everything in their power to restore your good credit, on your behalf.
However, if after 12 months of service, and if you have forwarded your credit
reports every 90 days and completed your commitments to the services, you
aren't satisfied with the progress or results, a company should happily offer
you a refund. Clients must understand that all results achieved by any credit repair
firm on behalf of clients will depend to some degree, and are not
limited
to, a client's ability to repay loans and debts in a timely fashion once
enrolled in a credit repair program, engaging the cooperation of the client's
creditors, as well as the ability of the credit bureaus to verify the information
that the repair company supplies.
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