When considering credit restoration there are a few laws a consumer should familiarize themselves with in order to be protected. There is one law in particular which every consumer in the state of Massachusetts should know.
This law states that a credit restoration company may not charge fees in advance. This means monthly fees for credit repair are illegal as are upfront fees (with exception of a standard set up no greater than $75).
Chapter 93: Section 68B. Credit services organization; restrictions
Section 68B. No credit services organization, its salespersons, agents or representatives, or any independent contractor who sells or attempts to sell the services of a credit services organization shall (1) charge or receive any money or other valuable consideration prior to full, complete and satisfactory performance of the services the credit services organization has agreed to perform for the buyer, unless such organization has obtained a surety bond in an amount not less than ten thousand dollars issued by a surety company authorized to do business in the commonwealth and has established a trust account at a federally insured bank or savings and loan association located in the commonwealth; (2) charge or receive any money or other valuable consideration solely for the referral of a buyer to a retail seller who will or may extend credit to the buyer if such extension of credit is upon substantially the same terms as those available to the general public; (3) make, or advise any buyer to make, any statement that is untrue or misleading, or that should be known by the exercise of reasonable care to be untrue or misleading, with respect to a buyer’s credit worthiness, credit standing or credit rating to a credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer has made application for an extension of credit; (4) make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice or course of business intended to defraud or deceive a buyer in connection with the offer or sale of such services.
Do NOT be fooled by companies who claim to provide credit repair and charge before results are achieved; these companies are scams. If you have found yourself victim of this fraudulent act you are entitled to damages as outlined in Chapter 93A.
Section 68E. Any violation of sections sixty-eight B to sixty-eight D, inclusive, shall constitute a violation of chapter ninety-three A.