“How do I stay compliant?”
“How can I make sure I do credit repair the right way?”
Staying in compliance with your credit repair business should be a top priority, if for no other reason than it’ll save you tons of money, and stress over time.
So what do you need to know and do to remain compliant in 2021?
Let’s start by going over some of the basics. By understanding and implementing these, you’ll enjoy peace of mind and can focus on what really matters – changing a ton of lives and making a great living in the process.
3 Credit Repair Compliance Basics
Your clients need transparency. They should know exactly what you’re doing since you’re sending everything in their name and they are paying you.
If you use Credit Repair Cloud software, they can see their progress reports in the portal, which will give them insight into where you’re taking action.
Allow them to see everything you’re doing ( the content of the letters you're sending)!
Some credit repair business owners think that they’re giving away trade secrets when they show their clients how they make progress and how their credit score is increasing.
This is not true!
Anyone could do the work of credit repair, just like anyone can cut their own hair or do their own taxes, but most won’t.
People pay you to be the expert and to help them get the result. Most people have ZERO desire to learn all of this on their own.
As you go, you’ll also teach your clients how to better handle their finances and their credit so they can maintain their great credit long after your work is done.
Remember, you’re building a business and a reputation. Your transparency will create referrals and grow your business much more quickly than pretending you're the only one who knows how to do credit repair.
- Set Realistic Expectations
Let’s talk about expectations and honesty in advertising your credit repair business. If you’re dishonest with your advertising or just straight lying to your clients there are major legal consequences.
Things you should never say to leads or clients:
“We can delete anything” – The truth is, you can’t! There are items which cannot be deleted. You won’t know until you’ve relentlessly attempted to do so.
“We can delete accurate information” – You should not say you can delete accurate information. If the item is questionable, dispute it. If it is verified as accurate with all entities, you will likely not be able to delete it. If you are persistent, you never know… it could fall off but probably not.
“We will get you XXX credit score” – Credit scores constantly fluctuate and there are many types of credit scores. You should never guarantee to reach a specific credit score!
“We guarantee you will be approved for a loan” – You are a credit repair pro, not a loan company. You do not know what guidelines their lender has for approval. Approvals are usually based on many factors outside just the credit report. Never guarantee a consumer will be approved for any loan!
“We can clean up your credit fast” – Consumers didn’t get into problems overnight and the issues will not be resolved overnight. This process takes time, persistence, and pressure, and even in the most ideal circumstances 6-12 months to complete credit repair. Set realistic expectations.
“We use loopholes” – It’s not true! Loopholes are shady! As Credit Heroes, we use consumer protection laws such as the FCRA to audit the credit bureaus. If the bureaus can’t verify the information, it must be deleted. This is not a loophole, it’s knowledge and persistence.
Finally, stay away from using absolutes - To protect yourself and your company, try to not use absolutes. Absolutes are words that give the impression that something is definite or guaranteed.
A few examples of words to remove from your scripts or marketing materials are:
Definitely – Certain – Convinced – Positive – Absolutely
- Local Regulations
In order to be compliant on a local level, state level, and federal level - depending on where your clients live - you may need specific licenses, bonds, or potentially register as a credit service organization.
To learn more about state-specific regulations, visit www.creditrepaircloud.com/all-states
Remember, running a business the right way means going above and beyond what is required legally, being transparent, and always remaining truthful.
Not only is it the right thing to do, but it also leads to better clients with realistic expectations and a lot more lives changed which means a lot more revenue! If you’re just dabbling in the credit repair industry and would like me to hold you by the hand as you launch your very own credit repair business in just a couple of weeks - I wanna invite you to join our upcoming Credit Hero Challenge! We start in just a few days, so go to creditherochallenge.com today!
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