Credzu, LLC, a veteran-owned business, seeks to eliminate financial harm to consumers and reduce regulatory risk to companies who work with each other in the notoriously problematic “credit repair” industry.

COCOA BEACH, Fla., Aug. 26, 2021 /PRNewswire/ — Imagine a world without credit repair scams. Imagine no more. Meet Credzu.com. After years of careful planning and a debut at the 2021 Credit Convention, a central Florida financial technology company launched a consumer protection platform to “repair” the credit repair industry.

The credit repair, tradelines, and debt settlement industries remain ripe for abuse, despite well-intentioned consumer protection laws and many good industry actors.  A disinterested third-party intermediary was the missing link. But, it’s missing no more.

Credzu’s solution applies the principles of escrow to transactions involving credit repair and related services. Specifically, Credzu holds consumer funds in escrow and releases the funds to a service provider only if and when that provider performs as agreed in writing. Otherwise, Credzu releases the funds back to the consumer.

In addition, the platform promotes transparency and eliminates many forms of fraud and misunderstandings by requiring written communication and legally compliant contracts between the transacting parties.

But, that’s not the only problem Credzu solves.

Decades of consumer harm associated with credit repair services have led to regulations so severe that compliance with them may be impossible.

For example, the Telemarketing Sales Rule (TSR) prohibits credit repair companies from charging consumers until six months after services are performed. 16 C.F.R. § 310.4(a)(2). The Federal government began enforcing that TSR provision very recently and very aggressively, resulting in tens of millions of dollars in fines. In response, trade associations and credit repair companies have challenged the TSR in court. The TSR has survived every challenge.

Credzu addresses that, too.

Credit repair transactions through Credzu’s online-only platform are not subject to that 6-month rule because the TSR does not apply “to Internet based transactions.” 80 FR 77520 (Dec. 14, 2015). Even so, the entire basis of Credzu’s business model is to carry out – not to avoid – the consumer protection principles enshrined in those regulations.

“We appreciate the intent of consumer protection laws, which severely punish bad behavior after it occurs. We want to reinforce those intentions by holding funds in escrow and prevent bad behavior before it begins” says Credzu’s founder, Robert Sigman.

“Think about it. If you were a scam artist, you would never use Credzu because, with money locked in escrow, you would know that you would never get paid. Only companies confident in their abilities and serious about compliance will use Credzu. For that reason, consumers have a trusted way to secure credit-related services.”

Credzu’s business model, which reduces consumer harm and increases regulatory compliant behavior, is a crucial addition to the industry. And, it comes at no better time. Consumers, especially the underprivileged, are poised to flood the credit repair industry due to the economic fallout from COVID-19. There has never been a more pressing need for protection. As companies realize their regulatory peril and adopt Credzu, everyone stands to benefit.

Credzu encourages credit repair companies to consult the TSR issue with their attorney. Credzu encourages everyone to bookmark their site and follow their Facebook and Twitter for soon-to-be-released updates.

Credzu is excited to bring its product to the market because, in an environment full of worry, there’s one less thing to worry about: Credit repair is now safe.