AFSA Outlines Dangers of Credit “Repair” Organizations
In a letter to the Democratic and Republican leaders on the Senate Banking Committee, AFSA shared its thoughts on the current state of credit reporting.
Specifically, AFSA highlighted the increasing number of frivolous or duplicative credit disputes submitted by credit repair organizations (CROs). With the promise of improving consumers’ credit scores, these companies aim to remove negative credit information from consumers’ reports regardless of whether the information being disputed is accurate or not.
As a result, credit bureaus and lenders are flooded with meritless disputes and are forced to divert compliance resources away from legitimate consumer disputes while consumers are straddled with exorbitant fees. AFSA strongly urges Congress and the CFPB to examine the practices of CROs to ensure consumers are protected from such schemes.
November 17th, 2021 by Dan Bucherer