Lawsuit Alleges We Raise Your Credit Score Charges Unlawful Upfront Fees

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A proposed class action alleges We Raise Your Credit Score Inc. has violated the Credit Repair Organizations Act (CROA) by collecting payments upfront before any services have been rendered and failing to make statutory disclosures about consumers’ rights.

According to the lawsuit, “hundreds, if not thousands” of consumers have been harmed by We Raise Your Credit Score’s alleged abuses of the CROA, a federal law enacted to “protect the public from unfair and deceptive advertising and business practices by credit repair organizations.”

The lawsuit charges that the company is a credit repair organization as defined by the CROA in that it represents that it can improve consumers’ credit records, credit histories and credit ratings in exchange for payment. Per the case, We Raise Your Credit Score affirms that it will develop a custom program to both improve consumers’ credit and dispute “all items from all Credit Bureaus” that the customer wants disputed. The company has moreover operated its credit repair service in Georgia despite the fact that the operation of such is illegal in the state, the suit alleges.

The case claims We Raise Your Credit Score has violated the CROA by charging customers for services before any services are performed, which is expressly prohibited by the statute.

Further, the CROA requires credit repair organizations to provide consumers with certain disclosures before any agreement is executed, the complaint relays. These disclosures are to include information concerning a consumer’s rights to obtain copies of their credit report, sue credit repair organizations who violate the CROA, cancel their contract with the organization within three days of signing it and dispute information in their credit report, according to the case. Consumers must also be informed of the credit bureaus’ obligations to them and of the fact that neither they nor any credit repair organization has the right to remove accurate, current and verifiable information from their credit report, the complaint relays.

According to the case, the defendant’s service agreement contains none of the disclosures required by the CROA.

The plaintiff, an Atlanta, Georgia resident, claims to have paid $1,500 to the defendant at the time she signed up for its services. Per the suit, the plaintiff suffered a financial injury by paying the company’s fee “before she should have been required to.” The case additionally claims that when We Raise Your Credit Score advised the plaintiff to ignore a debt collection law firm who was threatening to garnish her wages, doing so caused the firm to file a lawsuit against the woman and negatively impacted her credit.

The plaintiff looks to represent anyone in the U.S. and its territories who, within the past five years and until this action is concluded, entered into a service agreement with We Raise Your Credit Score and paid the company money before its services were fully performed.

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