How to Start a Credit Repair Business in Florida
Credit repair business is not for geeks or freaks, but people who are willing to learn and act. Does that sound like you? Then, you are eligible to start your credit repair company. As a resident of the US, you can choose to start your business in any of the states. Nonetheless, you need to be watchful because credit repair laws differ from states to states. The state of your choice will affect different factors, such as business opportunities and requirements for registration. If Florida is your preferred location, you will find this article useful because it will guide you on this journey. Please keep reading for How to Start a Credit Repair Business in Florida.
How to Start a Credit Repair Business in Florida: The Opportunities
There is no point in trying to invest in a business with low opportunities to make a profit. The foremost objective of doing business is to multiply your investment. The way you go about it is what shows whether you are a smart or reckless entrepreneur. Florida is a fantastic place to start your credit repair organization because it offers robust opportunities that you can explore. This sector is fast growing in the state, and the future of the industry is exciting.
According to the report by WalletHub, credit report companies in Florida are making more than $3 billion per year. The state has one of the highest credit debts in the US. Florida’s credit debt was a staggering $66.4 billion in the second quarter of 2019! Interestingly, this increase is the third highest in the history of this ranking. Hence, if you have plans to start your credit repair business in Florida, you need to act fast!
Many Floridians are in dire need of credit repair services, and you can be a succor for them. They don’t need another credit repair organization, but those who have the skills and acumen to sort out credit card debt. Some of them have been denied the homes of their dreams, while others could not qualify for job opportunities. They feel stuck and unable to make progress because they have not been paying attention to their credit report.
Therefore, credit repair services organizations that can effectively navigate credit reports will be an instant hit in Florida. You should not be worried about finding clients but being able to meet needs. The last thing Floridians want is another credit repair business that will exploit their desperation. They need credible credit repair companies that can help them solve their problems.
How to Start a Credit Repair Business in Florida: The Regulations
After settling issues regarding the market prospect, you need to think about credit repair laws in Florida. Every state in the US has its credit repair regulations, and you need to be conversant with the one in your location. Nonetheless, the Federal government has laws governing the activities of credit repair services organizations in the country. So, apart from the state laws, you also need to be familiar with federal laws.
The Federal government is aware of the fraudulent activities of some credit repair organizations and has stepped in. The essence of these regulations is to protect US citizens from exploitation by these organizations. Nevertheless, only those who want to play on the intelligence of unsuspecting clients should be afraid of these laws. There are sanctions and penalties for businesses that do not comply with these regulations. The two federal laws regulating credit repair organizations in the US are the CROA and the FCRA.
Credit Repair Organizations Act (CROA) and the Fair Credit Reporting Act (FCRA) specify the conditions and guidelines for your operations. The takeaway points of these regulations are:
- Clients must be given the liberty to cancel their subscription within three days.
- There should be a signed document between clients and organizations before the commencement of services.
Florida’s credit repair laws do not contradict federal laws. Besides, no state has regulations negating the directives of the federal government concerning these services. Just like the federal laws, Florida’s credit repair regulations do not permit organizations to make false claims about their services. To have more details about Florida’s credit repair laws, contact the state’s attorney.
How to Start a Credit Repair Business in Florida: Bond Requirement
One of the credit repair regulations that vary across different states in the US is bond requirements. Florida is one of the states that a credit repair organization needs to obtain a surety bond to operate. Moreover, you are not allowed to charge or receive any money from a client until you meet the state’s bond requirement. Getting a surety bond from a recognized surety company is what confers validity on your business in Florida.
Furthermore, you must ensure that the surety company has established a trust account at a loan association located in Florida. Also, the surety organization must have a valid account with a federally insured bank or savings. You do not have to lose any sleep over this because the procedure is effortless. It requires that you file an application and waits for the company’s response to your request. Usually, you will get a response within 24 hours to know whether the application was turned down or approved.
Nevertheless, your application will be approved in most cases. Some organizations will consider your credit rating, while some will not. Note that the surety bond is not free. It is worth $10,000; nonetheless, you will only pay a percentage of that. So, you will not pay $10,000 but $1,000. Once you have obtained the surety bond, you are approved by the government to operate in the state. You can charge and collect money after offering your services to clients from that point onward.
How to Start a Credit Repair Business in Florida: Cost& Licensing
To start a credit repair company in Florida, you need to apply for an occupational license. This license is under the regulations of the state’s Department of Business and Professional Regulation (DBPR). Remember that many of your clients are new to credit repair services. Therefore, provide them with topnotch services but also avoid charge backs. A charge back is a refund a person gets after successfully disputing the quality of services rendered to him or her.
Note that the occupational license is a general requirement in all states. Outside of that, the state does not require an official license before you can start your organization. Nonetheless, it is recommended that you receive training before you start. It is better to get relevant certificates to your business to confer credibility on it. Your clients should never have a reason to doubt your expertise and reliability. Certifications convince them that you have what it takes to help them to resolve their credit issues.
Facts:
Moreover, getting training will give you the platform to start the right way. You will be told about the dos and do nots of running a credit repair business. Therefore, you will know how to handle a variety of customers and credit issues. You will be able to identify loopholes in credit reports that will enable you to successfully dispute inaccurate information. Your earnings and success as a credit repair company depend on your ability to help clients get deletions of negative information from their credit reports.
The cost of starting your credit repair depends on whether you want to start on a small, medium, or large scale. You can make things easy for you by leveraging an established company’s infrastructure and service delivery abilities. This move will ensure that you avoid the stress of convincing clients about your brand.
How to Start a Credit Repair Business in Florida: Statute of Limitation
The statute of limitations is a law that determines the time from a date that a business or individual has to file the claim in a court. The essence of a statute of limitations is to ensure that litigations are brought within an acceptable time frame. Therefore, those involved in potential disputes will be able to rest assured that a case will no longer be brought forward again. Florida’s statute of limitations is found in section 95.11 of Florida Statutes.
Regarding credit repair business, the statute of limitations is the time frame that a creditor can sue a customer for debt payments. The law of limitations is five years for breach of a written contract, and it is four years for fraud claims. It is two years for defamation and claims involving the payment of wages and overtime. You need to be conversant with these regulations to enable you to make quality decisions regarding your business.
Every business owner will prefer to avoid litigation. Nonetheless, you may find yourself in such unpleasant situations. Some clients may decide to take things up with you in an unprecedented way. So, you need to be familiar with the state’s regulations to stay safe regarding the legalities of your business. You may act ignorant, but that will not be a valid excuse in case of a lawsuit. To be on a safer side, get professional advice from an attorney in Florida.
How to Start a Credit Repair Business in Florida: Payment and Record-Keeping
You will smile to the bank often when you are adept at helping your customers resolve credit issues. Moreover, you need to have software to make things easier to sort out payment and record-breaking. Ensure that you employ topnotch software that offers seamless payment processing. Contact a company whose software can deal with high-risk merchant processing. Also, you need customer relationship management software (CRM).
You do not need one in the beginning, but you will need it in the long run. So, you can save yourself the stress of getting it later by doing it now. High-quality software will also enable you to keep the details of your clients easily. Besides, it will also allow you to have access to their credit report seamlessly. You will be able to scrutinize their credit report adequately to identify disposable inaccurate information.
Moreover, charge backs are a severe challenge battling credit repair company. Nonetheless, you can overcome them when you have a meticulous approach to record-keeping. With the aid of high-grade software, you will be able to keep track of your interaction with clients. Hence, this will give you an edge in case of charge backs.
How to Start a Credit Repair Business in Florida: Running the Business Effectively
You should always place a premium on your professional relationships with your clients and professional bodies. You will be dealing with charge back for your clients; hence, you should have a strong rapport with credit reporting agencies. Know the dispute management supervisors and managers and be acquainted with them. Let them recognize you by sending them your cover letter and brochures. Have a good understanding of their dispute procedure.
Finally, you should prioritize your relationship with your clients. Endeavor to provide them with quality services. Excellent relationships with clients will save you costs on marketing. In the early stages of the business, you will have to leverage social media and other advertisements. Nonetheless, with quality services, your clients recommend you to others, which will save you money on marketing and branding.
You need to plan in case of litigation’s to avoid suffering personal damages. Things can go bad such that you end up in bankruptcy. To avoid such situations, register your company as a partnership or an LLC. Registering your business as a partnership or LLC ensures that you either share losses or protect your asset in case of a lawsuit.
Conclusion
According to ValuePeguin, more than 1 million people in Florida have less than 600 credit ratings. Hence, the state is full of people who require the services of credit repair companies. Helping people resolve credit issues is satisfying, exciting, and lucrative. You will not just be boosting your clients’ credit scores, but also the quality of their lives. They will pay you will a grateful heart, and that is why you need to be at the top of your game.