The full explanation
It may not charge you before it finishes the service it promised, and it may not advise you to say something false to a credit reporting agency or a creditor. Before you sign, it must give you a written statement of your rights, and you can cancel the contract at no cost within three business days. According to the CFPB, no one can remove accurate negative information from your report, and disputing errors is free: you can do it yourself.
An example
A social media ad promises Jorge a quick jump in his score if he pays a fee up front. Jorge knows the law does not allow charging before the service is done. He requests his free reports instead and disputes an error himself.
You will see it in…
- Ads that promise to “erase” debts or raise your score fast
- The rights statement (“Consumer Credit File Rights Under State and Federal Law”) you must get before signing
- The cancellation form (“Notice of Cancellation”) that comes with the contract
