PERC urges Congress to amend the Credit Repair Organization Act (CROA) and exempt credit education firms.

CROA–designed to protect consumers from scam credit repair firms–was never intended to apply credit education. PERC research shows that personalized credit report and score education works–many experience increased scores and move into better risk tiers. The same studies also show that CROA deters people from using personalized credit education. Many are fearful of their credit reports and credit scores. Many also turn to credit bureaus to answer questions they have about improving their scores. When exposed to a legal disclaimer and a mandatory minimum 3 business day wait, they simply never use the service. There is a huge need for personalized credit education–almost half of all younger Americans and lower income Americans think that a credit report and credit score are different names for the same thing–yet CROA deters the single most effective and scalable solution. Even the FTC stated that nationwide credit bureaus and legitimate credit education firms should be exempted. This video features real people who finished a credit education session. They discuss their experience and how their lives have been impacted. The video also features credit educators, and prominent experts and advocates who share their views on personalized credit education and the need for policy reform by Congress.

see the video :