If you are thinking about starting your own business, one of the opportunities you may have come across is credit repair. You can start a credit repair business with little training and very little initial investment cost. It is very easy to make a return on your investment within the first few months of business if you have a firm grasp on good business practices and have mastered the art of marketing.
There are a few things you need to know before you start a credit repair business.
It is absolutely crucial your business operates within the parameters of your state’s laws. Every state is different. You need to know exactly what you can and cannot say to clients as well as what is legal to dispute.
There are also state laws about fees you are allowed to charge a client. Do your research before you ever open the doors to your business.
There are laws that you as the owner of the business must follow and laws about what creditors and collection agencies can do. You need to understand these laws and how they work so you can provide the best help possible to your clients.
Making a mistake and breaking a law could cost you everything. Before you write your first letter or make contact with your first client, you need to have a firm understanding of the law.
Credit Repair Organization Act
Yet another law you will need to be familiar with is the Credit Repair Organization Act. This will dictate what you can and cannot do in your business. The act is meant to protect clients from unscrupulous companies who will not follow through with their promises.
Unfortunately, there have been some businesses in the past that have had some shady business practices that make this act necessary.
Taking Money Up Front
The Credit Repair Organization Act makes it illegal for a credit repair business to charge a fee in advance. You cannot charge a client for services you have not provided.
This is a big one and it is important you have written contracts that state this. Your contracts must follow the letter of the law to a T.
All businesses must have some kind of protection just in case things do go south and a client wants to file a claim. A surety bond must be in place before you can start a credit repair business.
How much the bond needs to be will typically depend on where you live and your state laws. How much the bond will cost you will depend on your own credit rating.
Although it may seem like a lot to learn and research, you can be starting a credit repair business fairly easily once you have reviewed the above information. Using credit repair software will help you operate within the law as well as give you a reliable source of record keeping.
Don’t delay your dream to start a credit repair business. Start researching and studying now and get the information you need to get started.
Bonus: Now that you have read this article, why not take your new skill and start your own credit business helping others? We have free training that can help you do just that.
Click here to learn more.