|April 27, 2021|
RMAI Joining Multi-Industry Efforts to Reform Industry
This week, RMAI is retaining a Texas lobbyist to assist a multi-industry effort to reform the credit repair industry. We need your help! Here are two easy ways you can assist:
(2) If you live in Texas, please reach out to your state representatives indicating your STRONG support for Texas House Bill 4266.
These inquiry letters use unique consumer names and addresses to give the appearance that the letter was sent directly from the consumer. The sad truth is that often the consumers are completely unaware that a credit repair organization they have hired has sent an inquiry letter to businesses on their behalf and in their name.
Many RMAI members have reported their belief that credit repair organizations send inquiry letters without first reviewing consumers’ unique account histories or details. Due to the lack of account due diligence performed by these credit repair organizations, it is often discovered that the matters of concern were resolved long ago or that the credit reporting tradelines that are the subject of the communication are no longer being credit reported.
Texas House Bill 4266 would go a long way to reign in the unethical business practices of the credit repair industry by requiring credit repair organizations to: (1) obtain the express written authorization from consumers to communicate on their behalf; (2) disclose their identity in the communication and not impersonate the client; (3) provide sufficient information to investigate a dispute of an item related to an extension of consumer credit; and (4) provide an itemized monthly statement to the consumer of services provided.