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CANADIAN and U.K. CONSUMER
HELP "Buy now, pay later!" This phrase has become a mantra for many who embrace the credit concept. But when the bill comes and you have no way of paying it, debt begins to spiral out of control. That’s when the "Fix bad credit... fast!" line starts to look appealing. And it's everywhere these days – on television, in newspapers, and displayed prominently on public transit buses and trains. Desperate people are often disillusioned when a credit repairer promises to fix their credit. In reality, they often only add to the debt by requiring payment for accomplishing nothing. If you’re thinking about using a credit repairer or want good advice regarding credit, here are the things you need to know. It’s illegal for credit repairers to accept advance payment, security for payment or to charge a fee unless their services cause a material improvement to the consumer’s credit file. For example, if an account owed by one consumer appeared on the wrong person’s credit file, a correction of that information achieved through the efforts of the credit repair company would be a material improvement. It’s illegal for a credit repairer to represent that they can cause a material improvement to a consumer’s credit file, prior to examining the consumer’s consumer report. Consumers have a 10-day cooling-off period, which begins from the time they receive a copy of the agreement that meets the requirements of the act. If the company fails to repay the money, the consumer can take the company to court. Credit repairers must provide the consumer with a written, dated contract. It’s illegal for credit repairers to make false or misleading claims. In reality, no credit repairer has the power to change or erase accurate information in a consumer’s file. Go to the Governement on Ontario for free help with credit repair and debt management issues. |
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