CREDIT REPAIR LAWS IN GEORGIA
Many Georgians are having a hard time recovering from a poor credit score. And this is when they seek the best credit repair companies in Georgia to help restore their credit. Fortunately, the Georgia credit repair laws protect these people from unfair and deceptive practices done by some credit repair businesses.
If you are planning to start a credit repair business in Georgia, the state has a great opportunity for you. In fact, according to a survey, 38% out of 10,936,299 Georgians are having difficulty getting a house because of poor credit scores. For this reason, many of them have the same question in mind “How to fix my credit?”.
Moreover, Georgia has an average credit score of 689. Most of the residents’ debts are from mortgages, credit cards, student, and auto loans. The state’s average mortgage debt is $29,350. Credit card debt is $5,693. Furthermore, the state’s student loan debt is $7,250. And Auto loan debt is $5,480. Thus, many Georgians need a credit repair specialist to help improve their credit score. If you want to start a credit repair in Georgia, here’s all you need to know.
Georgia Credit Repair Laws Prohibited Acts that Regulate Credit Repair Businesses in Georgia
All credit repair in Georgia is prohibited from making false claims about the services being offered.- Moreover, businesses that offer to fix credit are NOT allowed to charge or receive any payment before the completeness of the services to be performed.
- No person or company can legally perform any credit repair services without a written contract, with the date and consumer’s signature.
- Also, it is mandatory for all credit repair companies in Georgia to allow the consumer to cancel the agreement 3-days after the contract has been signed.
- In addition, removing negative but accurate information from the consumer’s credit report is strictly against Georgia credit repair laws.
- Making a new identity of a consumer is an illegal practice.
- Lastly, credit repair specialists shall not advise the consumer to ignore IRS, collection letters, or any other legal documents.
What should the contract includes under Georgia Credit Repair Laws
Before conducting any services, the credit repair company and the consumer must have a written contract with the following details:
- The company’s name and business address.
- The total cost of the service to be performed.
- Complete and full descriptions of the credit repair services to be performed.
- The estimated time the services will be completed.
- Any guarantees that the credit repair company offers.
Statute of Limitations on Debt in Georgia
The state has a different statute of limitations on different types of debt.
The mortgage debt statute of limitations in Georgia is 6 years
The credit card debt statute of limitations in Georgia is 4 years
The auto loan debt statute of limitations in Georgia is 4 years
The medical debt statute of limitations in Georgia is 4 years
The state tax debt statute of limitations in Georgia is 4 years.
For other forms of debts, the state provides 6 years statute of limitations for written debt. 4 years for oral debt. Then, 5 years for judgment debt.
Want to Start a Credit Repair Business in Georgia? Here are what you Need:
How to start a credit repair in Georgia?
1.Obtain a surety bond.
The state-mandated surety bond in Georgia is $25,000. You can get this from a surety company in the state.
2. Register your credit repair business in Georgia.
Like any other business, it is required to register your company before conducting any services.
3. Get the right credit repair software for business.
There are a lot of credit repair programs you can find out there. But not all of them are created equal. We suggest investing in a powerful software that has all the tools you need to run the business with ease. This lets you save time and money from managing and buying multiple computer programs. Visit Credit Money Machine to learn more.
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FAQ (Frequently Asked Questions) Related to Credit Repair Laws in Georgia
Q1: Can credit repair companies in Georgia guarantee removing negative information from my credit report?
No, credit repair companies in Georgia cannot guarantee to remove negative information from your credit report. Legitimate credit repair companies can only assist you in disputing inaccurate or outdated information on your credit report.
Q2: What are the limitations on fees that credit repair companies can charge in Georgia?
In Georgia, credit repair companies are subject to limitations on the fees they can charge. The Credit Repair Organizations Act restricts them from charging fees before they have performed their services. Moreover, they can’t charge fees that are deemed unfair or unreasonable.
Q3: How long does a credit repair process typically take in Georgia?
The credit repair process duration can vary depending on the complexity of your credit issues and how promptly the credit bureaus and creditors respond. Typically, it can take a few months to see significant improvements in your credit.
Q4: Can I repair my credit without hiring a credit repair company in Georgia?
Yes. You can directly contact the credit bureaus to dispute inaccurate information on your credit report. In addition, you can rely on credit repair software to extract your credit reports, detect errors, and generate dispute letters.
Q5: Where can I file a complaint against a credit repair company in Georgia if I believe they have violated the law?
You can contact the Georgia Department of Law’s Consumer Protection Division or the Federal Trade Commission (FTC) to file a complaint against a credit repair business in the state. These organizations handle consumer complaints related to credit repair and can guide you on the appropriate steps.