What is the FTC?
The Federal Trade Commission, or FTC, is an independent agency of the government whose principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive business practices, such as a coercive monopoly.
When was the FTC Established?
The Federal Trade Commission Act was signed into law by Woodrow Wilson in 1914, thereby creating the Federal Trade Commission.
What is the Purpose of the FTC?
The FTC’s own mission statement is “to protect consumers by preventing anticompetitive, deceptive, and unfair business practices, enhancing informed consumer choice and public understanding of the competitive process, and accomplishing this without unduly burdening legitimate business activity”.
How Does the Federal Trade Commission Benefit Consumers?
The FTC enforces antitrust laws, discouraging monopolies form forming which keeps the markets and economy free and open. This benefits the consumers because prices remain competitively low and the quality and choice of goods high. This healthy competition doesn’t allow a single entity to have complete control over an industry, which would result in the manipulation of pricing and abuse of position.
How Does the FTC Influence Credit Repair Companies?
The FTC has had a long-standing relationship with the credit repair sector because this is where consumers could potentially be at their most vulnerable, financially. The implementation of the Credit Repair Organizations Act in 1996 put a spotlight on this industry to protect consumers.
What is the Credit Repair Organizations Act of 1996?
The Credit Repair Organizations Act is intended to prevent credit repair organizations from partaking in unfair business practices by taking advantage of poorly educated consumers or those from limited economic means.
What is FICO?
FICO (formerly Fair Isaac Company) is a predictive data analytics company that generates credit scores. These credit scores help lenders predict the level of risk in regards a loan. The FICO score is a predictor of how likely it is a person will be able to pay their bills on time, or how big a line of credit they will be able to manage. The FICO credit score is the most widely used in the financial industry. FICO gets their credit information from the three national credit bureaus in the U.S. (more on that below).
What is the FICO Credit Score Range?
The FICO score ranges between 300 and 850. The lower your score is the harder it will become to get approved for loans or get favorable interest rates on them. A credit score of 760 and above is considered excellent.
Who are the Three Major National Credit Bureaus?
The three national credit bureaus in the U.S are Equifax, Experian, and TransUnion. They collect all of the consumer credit information and sell it to financial institutions in the form of a credit report. They can only sell these credit reports to businesses/financial institutions that have a legally valid reason for requesting it. The FTC have in recent years sued all three of these national credit bureaus, obtaining nearly $3 million in civil penalties.
Why do you need a Payment Servicing Company?
Since credit repair companies are not allowed to charge an up-front fee for their work due to the restrictions placed on them by the FTC and CROA, a “First Work Fee” is best policy. This means that you will be getting paid for work you have already done. Although this is a great way to gain trust among your clients, it could leave your business low on funds. That is where Payment Automation Network, Inc. comes in. Here is what you get when you choose us:
We collect payments electronically directly from your customer’s checking account.
We disburse funds to you daily.
We can collect and hold funds in our escrow/trust account until your work is completed, keeping you compliant with consumer debt protection laws.
We verify all payment and bank information through our verification service before processing your payments. Saving you thousands in return payment fees. Our payment verification service is included for no additional charge.
We email your client a payment reminder.
Besides integration with your CRM software, you have 24/7 access to our web portal to monitor your accounts.
Payment Servicing for Credit Repair Companies
Payment Automation Network is specifically built to help your credit repair company succeed. We take all of the manual work and hassle of payment collection from your clients and we disburse the funds to you. Call us today toll free on (800) 813-3740.