When any credit repair company offers you the services to repair bad credit, you should know some important legal rights. This understanding of these legal rights help your identify credit repair scam. These are important to protect yourself to fall prey to any kind of fraud.

According to the Credit Repair Organization Act, nobody is allowed to make false claims about credit repair.  It also states that any credit repair company cannot ask for credit repair fee before providing the services.  Every citizen has a right to have free credit repair evaluation.

The credit repair company should apprise you of your legal rights concerning credit repair.  It should provide the information about the legal rights in a written contract. In addition, it should describe the services it will be providing to you, the duration of service, timeline before you see any results, cost of the process and any guarantee it offering. It should also be mentioned in the written contract that you can cancel the contract within first three days without paying any charge.

You can sue the credit repair company for fees they have charged or the actual losses they have incurred, whichever amount is higher. If you have any problem with your credit repair company, you should report it to the local consumer affair office, State Attorney General and the Better Business Bureau.

You should always report to appropriate authority if you see any illegal credit repair practices. All these legal rights control credit repair scams.