CROA violations: Credit repair class action lawsuit investigation

How CROA violations affect consumers and how to take action  

Did a credit repair, debt consolidation or debt settlement company make false promises or charge you before providing services? You may have a legal claim under the Credit Repair Organizations Act. Fill out the form to see if you qualify for a credit repair class action lawsuit.

If you are struggling with debt, you may have sought professional help. Unfortunately, some credit repair, debt consolidation and debt settlement companies use deceptive tactics to attract customers, including making false promises and charging for services they never provide — leaving individuals in worse financial shape.

The Credit Repair Organizations Act (CROA) was created to protect consumers from these fraudulent practices. The law sets strict rules for debt consolidation and credit repair companies, banning upfront fees and misleading promises.

Common CROA violations include:

• Promising services that cannot be legally performed
• Making verbal promises that contradict the written contract
• Claiming they can change accurate information on your credit report
• Charging for services that are never delivered
• Billing fees before performing any services
• Failing to provide a written contract at the time of hire

Despite these regulations, some companies continue to operate in allegedly deceptive ways. If you have been harmed, you may be eligible to join a credit repair class action lawsuit. A qualified attorney can help hold these companies accountable and seek compensation for your financial losses.

What is the Credit Repair Organization Act, and what protections does it offer?

The Credit Repair Organizations Act (CROA) is a federal law designed to protect consumers from deceptive practices that may be used by some credit repair companies. It sets clear rules to ensure these organizations operate with transparency and accountability.

CROA protects consumers by:

• Banning upfront fees: Companies cannot charge for services before performing them. Fees can only be billed monthly or per correction.
• Requiring written contracts: Every client must receive a clear agreement outlining services and terms.
• Preventing false promises: Credit repair companies cannot mislead clients or guarantee results they are not legally able to deliver.

In short, CROA ensures that credit repair organizations operate fairly and that consumers are protected from unethical practices.

How do CROA violations impact consumers?

Many people who turn to credit repair companies are already struggling with poor credit or financial hardship. Unscrupulous companies may exploit this vulnerability by charging high fees for services they never intend to deliver.

These deceptive practices can leave consumers in worse financial shape and, in severe cases, may even lead to identity theft if personal credit information is misused.

Recovering from debt consolidation or credit repair fraud can be challenging, but seeking help from a qualified attorney is a crucial first step in the process. Victims of CROA violations may be eligible to join a credit repair class action lawsuit and pursue compensation for financial harm.

How to join a debt consolidation company lawsuit 

If you worked with one of the companies listed below and believe you experienced a CROA violation, you may be eligible to take part in a class action lawsuit seeking compensation.

• Americor Funding, LLC
• Beyond Finance
• ClearOne Advantage, LLC
• Freedom Debt Relief
• National Debt Relief
• United Credit Education Services (UCES)

As a first step, please share your experience using the form on this page. A legal representative will review your information and may contact you with more details.

Fill out the form on this page to see if you qualify for a free case evaluation.

The law firm responsible for the content of this page is: Atlas Consumer Law, 312-313-1613, atlasconsumerlaw.com