Litigious issues are a business owner’s worst nightmare. As a credit repair business owner, you want to ensure that every aspect of your company is legally implemented and legally structured. A lawsuit can break your company. Luckily, DisputeSuite offers the right information and the right products to fulfill all legal and compliance issues. Whether you take the DisputeSuite route or not, it’s essential to know the basics regarding compliance with state and federal laws.
Take heed of the 5 tips for protecting your assets and your business.
- Create and Use the Right Contract
All credit improvement companies are required by law to have their clients sign a consumer contract. The first thing you need to have in place is a good contract. DisputeSuite offers a sample contract that provides all the right information for compliance purposes. If you plan to create your own, check out the most essential items that a credit repair contract needs.
- Know CROA
CROA stands for Credit Repair Organizations Act and it sets the standards, laws, and practices for credit repair companies. As a credit repair professional, it is essential that you are intimately aware of CROA’s agenda, rules, and practices. Its purpose is to regulate credit repair companies in response to a series of fraudulent businesses who scammed customers with promises of credit repair. CROA was established to prevent this type of consumer deception. Now, it oversees and designates the laws and standards for any credit repair business. It can be difficult to sift through the legal jargon of its system, so familiarize yourself with the basics here, and attend DisputeSuite’s weekly webinars and biannual Credit Boot Camp to stay up-to-date with the various laws and regulations.
- Obtain Proper Training – Get NACSO Certified
This is imperative as it will educate you and your staff on the laws of compliance. Not only will this help prevent your team from inadvertently violating any laws, but it will also add professionalism and credibility to your company. Listen to the industry expert, Rob Ellerman, give a quick introduction to NACSO, if you’re looking for an overview from a professional perspective. For more information about NACSO, you can conduct your own research, visit their site, or attend Dispute Suite’s Credit Boot Camp. The Boot Camp hosts NACSO representatives who discuss their organization in more detail, and offer the opportunity to take their certification test on site.
- Evaluate Your Business Structure
As simple as it may sound, it is important to understand the benefits and pitfalls of certain legal entities. All business owners should understand the liabilities and protections embedded in their business structure. For instance, if you own a sole proprietorship you are personally responsible for any losses and liabilities. If someone chooses to sue your company, they could go after your personal assets as well. This includes the liabilities incurred by your employees. On the other hand, Corporations offer more legal distance between the company and its owners. An incorporated business is responsible for itself, and therefore its business owners or shareholders will not be entirely responsible for debts or liabilities. If you’re unaware of your potential liabilities, or if you are not an incorporated business, now is the time to re-evaluate your company’s structure.
- Use Safe Software
Credit Repair professionals deal with sensitive information: Social Security numbers, credit card numbers, addresses, etc. Any data breach or loss of pertinent consumer information is a sure-fire way to get sued. Invest in reputable and efficient software that contains features that abide by CROA guidelines AND provide efficient and cost-effective processing service. Not to mention, the organization they provide can be a huge headache relief and way to build upon your current lead and/or customer base.
Ready to protect your business and increase your profitability? Talk to the industry’s best professionals about the easiest and most cost-effective business plan. Call Dispute Suite today to learn more: 727-877-6812 or visit www.DisputeSuite.com