What Is a Credit Repair Agreement?

Even though you wouldn’t expect errors on your credit reports, they happen.

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It may come as a surprise, but credit bureaus often make errors, including flagging late credit card payments and unpaid utility bills that were actually paid on time. 

These errors negatively affect your credit score, preventing you from enjoying the advantages of a good credit rating, like access to loans. Fortunately, reliable credit repair companies, like The Phenix Group, can help you identify and correct these errors on your credit report. 

Signing a credit repair agreement allows a credit repair company to act on your behalf to improve your credit score. They do this by communicating with credit bureaus and information furnishers to delete inaccuracies in your credit report. 

In this article, we’ll explore the components of a credit repair agreement, as well as what a 609 credit repair entails. 

Components of a Credit Repair Agreement

A credit repair agreement is a contract between a client and a credit repair company. According to the Credit Repair Organizations Act (CROA), credit repair companies must provide a credit repair agreement when offering their services to consumers. 

Although repair inaccuracies and unverifiable information on credit reports are legal, some credit companies are fraudulent–they make false promises and often mislead innocent consumers. Because of this, the CROA was created to keep such shady credit repair companies at bay. When working with legitimate credit repair services in Dallas, Texas, the credit repair agreement should contain:

  • Payment terms for the services to be offered, including the total cost of the entire credit repair process made clear at the beginning of the engagement

  • A description of the services to be provided by the company to the client

  • Any guarantees or refund policies 

  • The period within which the company should complete the credit repair process

  • The names and physical addresses of the credit repair company and the client 

  • A power of attorney 

  • A cancellation notice

You’ll then sign a contract for the credit repair company to begin the process of improving your credit rating. There is usually a three-day waiting period after signing the contract, which allows you to cancel the contract if you’re no longer interested in working with the company. Within this waiting period, you can cancel the contract without paying any fees as a penalty.   

The credit repair company would then make two copies of the agreement and give you one while keeping the other. According to the Credit Repair Organizations Act, the company is also obligated to keep the agreement for a minimum of two years.     

How a 609 Letter Can Improve Your Credit Score

A 609 letter is a credit repair letter that requests credit bureaus to remove inaccurate and unverifiable negative information from your credit reports. It is named after section 609 of the Fair Credit Reporting Act (FCRA); the FCRA is a federal law that protects consumers from unfair credit and collection practices. 

Errors in your credit reports may incorrectly lower your credit scores, preventing you from accessing loans or seeking employment. A 609 credit repair letter would remove any negative information from credit reports to boost your credit rating.

How Long Does It Take to Complete Credit Repair Work In Dallas?

Wondering how fast credit repair works in Dallas? It takes at least thirty days to complete credit repair if you only have a few inaccuracies, but could take longer than six months to repair your credit if you have a history of late payments, defaults, and bankruptcy. 


A credit repair agreement is a contract given to consumers at the beginning of the credit repair process–it shows how long the credit repair process is likely to take and the costs of the services to be rendered. Credit repair agreements help guide the relationship between you and the credit repair company you hire. If you decide to cancel the contract within the waiting period after signing, you are not required to pay any penalties. The 609 letter was created to protect consumers from unfair credit and collection practices. Reliable credit repair companies, like The Phenix Group, send 609 letters to credit bureaus as a method to remove negative marks from your credit report. These letters dispute inaccurate information and help rectify mistakes on your credit profile.

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