credit repair organizations act

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I have heard that as per credit repair organizations act depository institution are not included as being credit repair organizations, is it correct?

blue · Posted: Wed Feb 14, 2007 3:52 pm Post subject:

Hi Lawson,

Welcome to Mortgagefit discussion board.

It is quite correct. Any depository institution as defined in the Federal Deposit Insurance Act is not included as a credit repair organization.

In addition to it, as per Credit Repair Organizations Act any federal or state credit union, any affiliate or subsidiary of a depository institution or credit union is not included as being a credit repair organization.

Do let me know if you have any other questions.

Thanks
Blue

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one more thing I forgot to ask in my previous post is can a credit repair organization charge payment in advance for the service they are going to provide?

colin · Posted: Wed Feb 14, 2007 4:04 pm Post subject:

Hi Lawson,

As per Section 404(b) of the Credit Repair Organizations Act, no credit repair organization can charge or receive any money from you for providing the service in advance or before the service is fully performed.

Colin

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anyone knows about the SOL under this act?

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Hi Teg,

To enforce liability under this act a person should start any action before the later of,

end of 5 years from the date when any credit repair organizations did violation of the act or

end of 5 years, if the organization willfully misrepresents any information which they should disclose to the consumer. And such information is important in establishing that organization's liability to the consumer. The 5 year period begins from the date the consumer discovers such misrepresentation.

What it means is that suppose -

a) the organization violates the act in 2007 or

b) misrepresentation of information by organization in 2007 and consumers comes to know of it in 2008

Consumer can take steps against the credit repair organization in situation a) before the end of 5 years from 2007 or in situation b) before the end of 5 years from 2008.

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