After six to twelve months of services provided, you should be able to request an audit/evaluation of your account within 60 or so days of your notice to cancel services. The value of all successfully corrected/deleted items in your account should be calculated, and this number compared to the amount of money you have paid the company. If the value of the corrected/deleted items is less than the amount you have paid, they should refund the difference to you. The total value of services rendered should be calculated in a fair manner, such as the number of items successfully corrected/deleted being multiplied by $40 or $50 per item. This $40 or $50 per corrected/deleted item is typically the fair market value of credit repair services.

The examples below demonstrate how a good warranty should work.

Example A

A client starts with 10 negative items on their credit reports. After 12 months, 5 items have been successfully corrected/deleted, leaving 5 items remaining. The refund would be calculated as follows:

Assuming your cost for 12 months: $800.00

Value of services rendered: $250.00 (5 deletions x $50.00/ea)

Amount you owe: $0.00

Amount you get back: $500.00 (this often depends on the payment plan initially selected)

Example B

A client starts with 21 negative items on their credit reports. After 12 months, the company has successfully corrected/deleted 18 items, leaving 3 items remaining. The refund would be calculated as follows:

Assuming you cost for 12 months: $600.00 (6 months x $100.00/ea)

Value of services rendered: $1800.00 (18 deletions x $50.00/ea)

Amount you owe: $0.00

Amount you get back: $0.00

Example A demonstrates results that are far lower than those results provided to an average client; however, it provides a good illustration of how a good warranty works. Any warranty should be there to reassure you that it is in a company's interest to successfully restore your credit, but if for some reason they can't, it is the company's duty to provide you a refund.

Important Note:

If you begin credit repair service with very few negative items to be removed, such that if all items are successfully corrected/removed, the value would not equal the warranty value, the company should assign all negative items a new value. The new value should be equal to the total of the fees you've paid, then divided by the number of negative items.

A good warranty is intended to reassure you that a company's goal is to actually remove negative/disputed accounts form your credit reports - not just talk about it! If the services are unable to remove these items, they should be willing to refund your money. It's as simple as that!

Important Notice:

Legitimate credit repair companies should act in full compliance with Federal Trade Commissions (FTC) regulations, as well as the Credit Repair Organization Act. Therefore, by law, they cannot guarantee any exact or specific outcome or result. Having said that, they should promise to legally do everything in their power to restore your good credit, on your behalf. However, if after 12 months of service, and if you have forwarded your credit reports every 90 days and completed your commitments to the services, you aren't satisfied with the progress or results, a company should happily offer you a refund. Clients must understand that all results achieved by any credit repair firm on behalf of clients will depend to some degree, and are not
limited to, a client's ability to repay loans and debts in a timely fashion once enrolled in a credit repair program, engaging the cooperation of the client's creditors, as well as the ability of the credit bureaus to verify the information that the repair company supplies.