It is important to understand these laws before starting a loan repair business. In part, these laws prevent your company from doing so: the broad legal language of the ftc law makes it possible to successfully prosecute companies that may have slightly altered their business practices to exploit loopholes in stricter legislation. For example, if a nonprofit credit repair organization charges consumers upfront payments and does not provide services to the consumer, the FTC Act`s prohibitions on “deceptive” or “deceptive” practices against that behavior could be enforced, even if lawsuits under croa fail due to its specific ban on advance payments. Of course, any conduct that violates CROA would also violate FTC law. [FN56] If you cancel a payment made by you under this Agreement, it will be refunded within 10 days of receiving your notice of withdrawal from the Credit Service Organization. The Department of Banking and Finance has set the amount required for Florida`s credit repair obligations at $10,000. The investor pays a small percentage of this amount in the form of an annual bond premium. This percentage, the premium rate, is set for each bond largely on the basis of the personal solvency of the capital, although other factors may also be taken into account. (d) the main business address of the credit service organisation and the name and address of its representative in the State entitled to receive service of the proceedings. The Florida Credit Service Organizations Act (FCSOA) [FN27] was enacted in 1987 to regulate certain business practices in the area of credit repair and to protect against unfair and unscrupulous contracts between credit service agencies and consumers.

The main principles of the FCSOA include the requirement that consumers receive a written statement, [FN28], the regulation of contractual provisions, [FN29] a prohibition for consumers to waive the protections granted by law, [FN30] a provision on criminal sanctions for violations of the law [FN31] and a provision on actions for damages. [FN32] The FCSOA prohibits charging consumers prior to the provision of services by a credit service agency, with the small exception that if the provider maintains a guarantee and escrow account, consumers may be charged prior to the provision of the services. [FN33] In addition, credit service companies cannot charge money solely for the buyer`s recommendation to a seller of retail credit services if the terms available to the buyer are “substantially identical” to the terms available to the public. [FN34] In addition to the general prohibitions against misrepresentation when selling credit services, the FCSOA prohibits any credit service organization from advising a consumer to make a misleading or misleading statement in order to obtain a loan. [FN35] The main practical implications of this law include the obligation for credit repair organizations to provide consumers with a written contract [FN12] with significant disclosures, [FN13] rights of withdrawal for consumers, [FN14] and a ban on advance payments for credit repair services. [FN15] Consumers cannot do without such guarantees, and any attempt by a credit repair organization is in itself a violation of croA. [FN16] Other iterations of credit repair programs include premature fee-backed or unsecured credit card actions that market such cards as a way to create credit, but can often cause consumers to pay high fees for worthless credit card applications or pay-as-you-go cards. Other programs are billed as methods of loan reconstruction and debt consolidation, but often charge additional undisclosed and significant fees. Related schemes include mortgage aid fraud, where companies promise consumers assistance to save a home from foreclosure in exchange for high upfront fees, only to ultimately fail to do so while depriving the consumer of their legal rights.

For more information about credit repair fraud, visit the “How to Protect Yourself: Credit Repair Scams” page on the Florida Attorney General`s website or call 866-966-7226. “We can remove bankruptcies, judgments, liens and bad debts from your credit report, FOREVER!” (1) Any contract between the buyer and a credit service agency for the purchase of the services of the credit service agency shall be in writing, dated, signed by the buyer and shall include the following: The CSO is one of the three parties merged into a legally binding guarantee agreement. As a party required to purchase a credit repair bond, the CSO is the “principal” in the warranty agreement. The Florida Department of Banking and Finance, which regulates the credit services industry, is the “creditor,” the party that requires the obligation. The company that subscribes and issues the bond is called a “guarantor”. Does Florida need a credit repair license? We are not aware of any “governmental” license requirements specifically for credit repair; However, depending on your city and county, you may need to obtain a local tax receipt, permit, or business license. Most counties and cities in the state require business licenses or permits for all businesses, including single-person home operations. If you do business within a city limits, contact your city government to determine permit requirements.

If you are in an unincorporated area, contact the county government. If you have an office in more than one city or county, you may need to purchase a license for each city or county. Before providing credit repair services to your customers, you must provide them with written credit repair contracts. Under Florida law, these contracts must include the following: Florida consumers can take heart: The right tools are in place to combat credit repair fraud. With the current legal and adjudicative precedent, as well as the vigilance of federal and state law enforcement agencies, consumers will be able to thwart attempts at deception and injustice by an alleged charity. If you need help figuring out a payment plan and budget, contact your local nonprofit credit counselling service. These non-profit groups offer credit advice to consumers, and their services are available to you at little or no cost. Your credit union, housing authority or employer may also offer credit counselling services. If you are asked to pay something, make sure you receive a written quote detailing all the payments and services you receive. You can also view the nonprofit`s certification information. When a credit repair company promises to remove negative information from your credit report, the company is not telling the truth. In general, after a reporting period of seven years (or in some cases, 10 years), you can only change incorrect information or remove negative items that appear on your credit report.

If you have a bad credit history, you can only correct your credit report, in addition to deleting incorrect or expired information, by making timely payments on your debt over time.