Colorado Bankruptcy Law Group, LLC – Chapter 7 and 13 Attorneys

It’s bad enough to reach the end of your rope in dealing with your debt.  You don’t need to feel like you’re going to be pillaged by someone who tells you they can help.  So called “credit repair” companies seem to do more harm than good.  In my experience, they’re no better than negotiating a settlement than a borrower can be.  Plus, you’re going to have to pay them.  The Colorado Attorney General announced that it was taking action against at least one of these companies.

From the presser:

The Colorado Attorney General announced that attorneys from his office’s Consumer Protection Section have filed a lawsuit against Veracity Credit Consultants, a Denver-based credit-repair company.

According to the complaint, filed in Denver County District Court, the credit-repair company is suspected of charging upfront fees for its services, which is illegal under state and federal law. The company, according to the complaint, required that consumers pay an initial setup fee of up to $99 and monthly fees of up to $79. Under Colorado law, a credit-repair firm can only charge fees once its services are complete.

Veracity also is alleged to have failed to disclose to its clients the total amount they would be charged for credit-repair services. The company also advertised that it could “optimize” consumers’ credit records by erasing or repairing bad credit. Under the federal Fair Credit Reporting Act and Colorado Consumer Credit Reporting Act, credit bureaus are allowed to report negative information about a consumer’s credit for seven years and information concerning bankruptcies for 10 years.

“Consumers trying to work their way out of debt and improve their credit should carefully examine the promises any credit-repair company makes,” Suthers said. “Consumers also should beware of any company that charges upfront fees for any credit-repair services. Upfront fees are prohibited under Colorado and federal law.”

Suthers said the Colorado Credit Services Organization Act and similar federal laws prohibit:

• Prohibit untrue or misleading statements and representations;
• Prohibit advance fees for services;
• Require disclosure of the total amount a consumer will have to pay for credit repair services;
• Require disclosure about when accurate information can be removed from credit reports;
• Require disclosure of a consumer’s right to correct inaccurate information; and
• Providing consumers a five-day right to cancel a credit repair contract.

Peter Mullison is a bankruptcy attorney at Colorado Bankruptcy Law Group, LLC.  If you are considering Chapter 7 or Chapter 13 personal bankruptcy, schedule your free, confidential bankruptcy consultation with a Colorado bankruptcy attorney today. Our online scheduling system allows you to schedule bankruptcy consultation at a time that is convenient for you.

Colorado Bankruptcy Law Group, LLC is a personal bankruptcy firm serving clients in the greater Denver area.

photo: http://www.flickr.com/photos/sararah/ / CC BY-NC-SA 2.0

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