Credit Repair Services

I hired a credit repair company, I am having problems with them. What Should I do?

Learning about credit repair companies

Credit repair companies in Canada or credit repair agencies in Toronto are are for-profit businesses. They will offer several promised to clean up and even fix or to delete a bad credit history for a fee. negative information saved on your file will always be there no one is allowed to remove it from the system even credit repairing company. If you have incorrect or incomplete information on your credit report you may simply contact the credit reporting agencies yourself and ask them to fix it for you. Instead of contacting the credit repairing companies

Credit repair companies cannot remove information from your credit report. If the information is true, it will stay in your report for as long as legally allowed. credit repairing companies may promise to remove it for a fee because that is how credit repair companies work.

High-interest loans

Getting high-interest loans and credit cards will give you a higher interest rate or credit card that you can use to pay off any debts you owe. Credit card companies collect 18% interest rates. This may help your credit score, but it will cost you money and put you in more debt.

Credit repair Companies must follow consumer law guidelines:

  • Credit repair companies cannot tell you that they can help if they have not looked at your credit report.

  • They are not allowed to collect payment in advance.

  • They are not allowed to charge any fees unless they improve your credit report.

  • They are not allowed to provide false or misleading claims

Credit repair services must provide a credit repair agreement that has the following information:

  • Their company’s Information like name and address:

  • Your agreement’s date:

  • The list of the services they will provide

  • The target date of completing their services

  • The cost that they will charge you if they improve your credit report

When you decided to cancel the agreement

Once you received a copy of your agreement within the last 10 days, you have the right to cancel it. This is what we call a 10-day cooling-off period you do not need to provide a reason to cancel the agreement.

You can still cancel it within one year of signing it when:

The credit repair company failed to provide you a copy of the agreement.

When the agreement does not include the information

Cancellation letter

You must send a letter to the credit repair company if you want to cancel the agreement within one year. In your letter, include: Your name, address the date that you are filing the cancellation agreement the name of the company, their address, the date of your contract and other important details like the fact that you want to cancel, and what else you want to them to do. Clearly explain to the company how you want to resolve the problem. For example, ask for your money back. Be sure to include:

your contact information and the date when you want to hear from them (3 weeks is reasonable)copies (keep the originals) of receipts, invoices, contracts, or other important documents. Make sure you sign and date your letter. Keep a copy of it, and write down the date you sent it, and whether you mailed, emailed, or faxed it. If you do not write a letter, it can be difficult to prove that you canceled the contract. Make sure you have a copy of the letter, in case the company says you did not cancel the contract.

Making a complaint

You can complain about a credit repair agency to the Ministry of Government and Consumer Services. You may also make a complaint if the company used unfair business practices. These include the following details:

If they are pressuring you to use their services. Threatening you if you do not use their services and giving you false or incomplete information about their services. These are the red flag and the Ministry can order the credit repair company to cancel your contract or give your money back. They also have the authority to fine the company or stop it from doing business and may suggest that you go to Small Claims Court to sue the company.

Find a non-profit credit counselor

If you have a lot of debt or if you have trouble paying your bills, you can get help from a non-profit credit counselor. A counselor may give you ideas about how to manage your debt. With their help, you can avoid the same problems in the future. This can help improve your credit record and also help you to make a budget and understand how you got into debt. A counselor may help you understand how to get out of debt by talking with your creditors to reduce your debt and create a debt repayment plan.

A counselor may also help you repair and improve your credit score. In the first appointment, the counselor may discuss your options and is usually free. If you want additional help, you have to pay a fee. Non-profit credit counselors aren’t in business to make a profit from you. You can ask for a reduced fee If you can’t afford their fee. If you explain your credit standing, they may even agree to not charge you any fee at all.