Credit rebuild agencies are usually profit companies that help you improve your credit score for a fee. Credit2Go offers this service for free. Click here to learn more. In addition to helping you improve your credit rating, these companies can also contact the credit report agencies, Equifax and Transunion, to correct errors that may have slipped into your credit report without your knowledge.
If errors or omissions have done harm to your credit score, you can also contact Equifax and Transunion yourself and ask them to make adjustments in your file. You will have to show solid proof.
Credit rebuild agencies don’t have the authority to have information removed from your credit report because it gives you a bad name. If the information is accurate, it will remain in your file for the duration allowed by law. In Canada the duration is 7 years.
High-interest loans
Credit rebuild agencies can offer you a high-interest loan or credit card to help you pay off your debts. This could improve your credit score but will cost you money and contribute to your debt. Instead, Credit2Go offers a savings plan of a minimum of 1 year, as well as loans, and will send your credit reports every 3 months to the 2 Canadian agencies.
Credit rebuild agencies have rules they must follow
In Canada, credit recovery agencies must:
- Check your credit report before they can guarantee that they’ll be able to help you.
- “Deliver the goods” before asking you to pay them for the service provided.
- Be able to “deliver the goods” in order to collect a service fee.
- Make assertions that are true and not wrong.
In addition, they must provide you with a contract that contains the following information:
- The name and address of the agency
- The date of the agreement
- A list of all the services and products they will provide
- The end date of services
- The amount they will charge you if they can improve your credit report.
Find out if you can cancel your credit rebuild contract
If you received your contract within the last 10 days, you have the right to cancel it without justification. You can also cancel it within one year of signing it if:
- The agency has not given you a copy of your contract
- The contract does not contain the information required by law.
Cancellation letter
If you think you want to cancel your agreement within one year of signing it, you should notify your recovery agency by sending them a letter with the following information:
- Your name and address
- The date of the day you are sending this letter
- The name of the agency and its address
- The date of your agreement
- Any other important information
- Your desire to cancel the agreement and anything else you want to ask.
Make it clear to the agency what it is you want them to do, for example that you want to be reimbursed. Be sure to include in your letter:
- Your contact information
- The deadline to get a response (a three-week delay is considered reasonable)
- copies of receipts, invoices, contracts and other important documents (it is advisable to keep your originals)
Be sure to sign and date your letter and keep a copy. Note the date you sent it, and whether it was by mail, email or fax. Also make sure you keep a copy of your letter in case the agency says you didn’t cancel the agreement.
Additional Information
You can get more information about credit recovery agencies with the Québec Office de la Protection du Consommateur and you can find out about the federal Canadian laws and other provinces’ agencies by clicking here.
In conclusion, by doing business with Credit2Go, you will have a quick, easy and above all inexpensive and honest solution if you need to have your credit straightened!