What should I do if I hired a local company regarding credit repair but they have charged me for things not agreed to and now will not communicate with me?

The initiation fee was $350 paid last week. To date, they have failed to return any of my phone calls as well as multiple emails (this can be substantiated). This company also pulled my credit reports yesterday and used my credit card to pay for the reports. Yet at no time did I give them permission to make these purchases on my behalf or retain my credit card information. They also signed me up for monthly memberships on Equifax without my permission. The agreement I signed gave limited power of atty and states all fees/charges will be sent as invoice; nothing regarding using my card for their business purposes. Do I have a right to cancel and dispute charges? They will not respond to me directly.

Asked on August 7, 2014 under General Practice, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Double check your agreement/contract with them; if they have either  1) exceeded the authority you gave them, or 2) have not done what they committed contractually to do, they would be in breach of contract, and that  breach should entitle you to treat the contract as terminated and seek compensation. Or if they refuse to communicate with or respond to you, they may be in breach of the "implied covenant of good faith and fair dealing," or the requirement that parties to contracts treat each other fairly and in good faith. That breach can also provide grounds to treat the contract as terminated or seek damages, but can be much harder to prove, since it is more subjective; if you think you may proceed on this basis, make sure you have made multiple, well-documented attempts to communicate with and direct them as to what to do first.

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