Credit repair fraud Quiz

1. What is a sign that a credit repair company might be fraudulent?

A. They offer free initial consultations. B. They promise to delete bad credit. C. They provide a detailed contract.

2. What does the Credit Repair Organization Act (CROA) prohibit?

A. Charging fees after services are performed. B. Charging upfront fees before services are performed. C. Offering monthly subscription services.

3. Which of the following is NOT a legitimate practice of a credit repair company?

A. Consulting with you before discussing a strategy. B. Guaranteeing a specific credit score increase. C. Providing a disclosure statement of your rights.

4. What should a legitimate credit repair contract include?

A. The company's promise to raise your credit score by 100 points. B. A statement of your right to cancel within 3 days. C. A requirement to pay in cash only.

5. What is a red flag when dealing with credit repair companies?

A. They ask for your credit history. B. They tell you to dispute accurate information on your credit report. C. They provide a list of services they will perform.

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