If you’re considering credit repair services in Georgia, it’s crucial to understand the legality and potential risks involved. In this article, we’ll explore the state’s regulations on credit repair and provide guidance on navigating the industry safely.
The Legality of Credit Repair in Georgia
Georgia has strict laws regarding credit repair services. Under Georgia Code ยง 16-9-59, it is illegal and a misdemeanor to operate a credit repair services organization that charges for improving a buyer’s credit record, history, or rating, obtaining an extension of credit, or providing advice or assistance with these services.
The law defines a credit repair services organization as any person or entity that sells, provides, or represents that they can perform these services for a fee. However, certain entities are exempt from this definition, including banks, licensed real estate brokers, attorneys, and nonprofit organizations exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.
Potential Risks and Red Flags
If you decide to respond to a credit repair offer in Georgia, be cautious of companies that exhibit the following characteristics:
Asking for payment upfront
Legitimate credit repair services should not require full payment before any work is done. Be wary of companies that demand payment before providing any services.
Advising you to dispute all information on your credit report
Credit repair companies should carefully review your credit report and only dispute items that are inaccurate, incomplete, or unverifiable. Disputing everything on your report is a red flag and may be a sign of an illegitimate operation.
To protect yourself, it’s best to work with a credit repair law firm or a nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code. These entities are legally allowed to provide credit repair services in Georgia.