At The Sfields Group, we believe credit repair should be strategic, transparent, and compliant. But not every company follows that standard—and not every consumer knows their rights.
That’s why it’s critical to understand the Credit Repair Organizations Act (CROA)—a federal law designed to protect you from deceptive, unethical, or predatory credit repair practices.
If you’ve ever wondered what a credit repair company can and cannot legally do, this guide is your foundation.
What Is the CROA?
The Credit Repair Organizations Act (CROA) is part of the Consumer Credit Protection Act. Enforced by the Federal Trade Commission (FTC), it was enacted in 1996 to regulate how credit repair companies market, sell, and deliver their services.
It exists to protect consumers from fraud, false promises, and abusive practices in the credit repair industry.
At The Sfields Group, we use CROA as a framework—not a limitation—to empower clients through transparency, compliance, and strategic execution.
What Credit Repair Companies Cannot Do (Legally)
- Charge Upfront Fees
No company is allowed to collect payment before any services are performed. This includes charging for consultations, analysis, or dispute letters unless results have been delivered. - Promise to Remove Accurate Information
If an item on your credit report is accurate and verifiable, it cannot legally be removed—regardless of how negative it may be. Any company claiming otherwise is in direct violation of CROA. - Misrepresent Outcomes
No organization can guarantee a specific credit score improvement, timeline, or outcome. Ethical companies like The Sfields Group provide realistic, data-driven expectations based on your unique credit profile. - Discourage You from Contacting the Credit Bureaus
You always have the legal right to communicate directly with Experian, Equifax, or TransUnion. Any company discouraging this is operating outside of consumer protection laws. - Offer “Fake” Legal Advice
Unless they are licensed attorneys, credit repair organizations may not provide legal advice or pose as legal counsel.
What Credit Repair Companies Must Do
- Provide a Written Contract
CROA requires that all clients receive a clear, written contract detailing services, timelines, cancellation rights, and pricing. - Offer a Three-Day Cancellation Window
Every credit repair client has the legal right to cancel the agreement within three business days, with no obligation or penalty. - Disclose Your Legal Rights
You must be informed that you can perform all credit repair actions on your own—without hiring a company. At The Sfields Group, we not only disclose this—we teach it through our Help Center to empower DIY-minded clients.
Why Transparency and Timing Matter
Transparency builds trust. Without a clear contract, accurate disclosures, and realistic expectations, the credit repair process becomes murky at best—and dangerous at worst.
Timing is also key. Disputes must be timed strategically to align with credit bureau cycles, reporting periods, and statute limitations. Acting too early—or too late—can result in missed leverage opportunities.
That’s why The Sfields Group provides clear frameworks, timelines, and custom strategies based on your credit history, goals, and legal protection.