Section 404 of the Credit Repair Organizations Act (the "CROA"), states:
"No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed."
Although the Federal Law appears to be clear, some States, including Florida, have enacted similar and stricter laws, requiring the use of Trust accounts for client funds and a surety bond of $10,000.00 or more. While this is indeed much stricter, it appears to allow for up front fees if the company is bonded and uses a trust account. For example, Section 817.7005, Florida Statutes states, in relevant part:
"A credit service organization, its salespersons, agents, and representatives, and independent contractors who sell or attempt to sell the services of a credit service organization shall not do any of the following:
(1) Charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit service organization has agreed to perform for the buyer, unless the credit service organization has obtained a surety bond of $10,000 issued by a surety company admitted to do business in this state and has established a trust account at a federally insured bank or savings and loan association located in this state; however, where a credit service organization has obtained a surety bond and established a trust account as provided herein, the credit service organization may charge or receive money or other valuable consideration prior to full and complete performance of the services it has agreed to perform for the buyer but shall deposit all money or other valuable consideration received in its trust account until the full and complete performance of the services it has agreed to perform for the buyer;..."
Credit Wiping.com currently is one of the onlu KNOWN credit disputing companys in the Country to be bonded with a surety bond, permitting the acquisition of up front fees and protecting client funds at the same time.