Legal Issues with “Credit Repair” Companies in Georgia

Having a bad credit record can affect you adversely as it might become very difficult for you to secure new credit, which is why many offers for purported “credit repair” companies are now becoming very popular.  While a good credit score is important for many people, which makes it very important for you to do things that will help in repairing your credit rating, you will have to be careful not to violate any laws or statutes when attempting to mend your credit.

Legal Issues with Credit Repair

"Credit repair" is a popular trend, but be careful not to violate any laws.
“Credit repair” is a popular trend, but be careful not to violate any laws.

For this you will need to know the legal issues surrounding credit repair in Georgia, since there are a large number of credit repair companies that might offer you illegal methods and advice for repairing your credit rating. According to law, you can only take the help of banks and lenders that has been insured by FDIC as well as nonprofit organizations for offering you credit repair advice.

That being said, the best credit repair services are legitimate institutions that are looking to legally improve credit and financial ratings for its customers.  In certain situations, you can even seek the assistance of attorney, real estate broker and registered financial advisor for advising you regarding this matter. Credit repair is very important since bad credit score can be very stressful for you as you might lose a huge amount of money to bad credit score.

The reason for this is because when you have bad credit score, you will have to pay higher insurance premiums and higher loan interest rates that might be added to a large amount of money over the years. It’s important to note here that if you only have a few errors on your credit report, get them fixed now.  This will avoid a more drawn out process of credit repair, since a few bad apples can be removed without resorting to other methods. Furthermore, you should never hire a credit repair company without proper research because failing to do so can lead to penalties and legal ramifications.

Georgia Specific Laws (Updated 2017)

Under Georgia Law, it is a misdemeanor and illegal to operate credit repair service which utilizes another persons Social Security number, since no one can erase or remove the correct information from the credit reports entirely. There might be many attractive credit repair offers but you need to beware of the companies that might offer you new credit with the use of anyone else social security number as it is an offense. Avoid companies that ask you to pay for their credit repair services upfront and do not disclose your legal rights as you might now know what you need to do for repairing your credit rating.

Legal issues surrounding credit repair in Georgia includes prohibition to misrepresent your social security number as included in the social security act. It is also considered as a federal crime that you use the identification of any other individual with dishonest intent under the assumption deterrence and identity theft act. Hence you can make false statements on credit application as it is a federal crime and you cannot obtain employer identification number from internal revenue service as it is a crime for which you can be prosecuted by federal government for carrying on these crimes relating to the credit repair services.