I’m not much of a historian, but I have a vague understanding of the prohibition of 1920’s.

In short, advocates of the prohibition thought alcohol was “the devils advocate“, responsible for crime, poverty etc. On January 16th. 1920, the 18th amendment was put into place to make it illegal to sell, transport or manufacture alcohol.

Problem solved. Take away the cause and solve the problem right? Wrong, in fact it could easily be viewed as a miserable failure. Violent crimes skyrocketed, deaths skyrocketed and gangs flourished.

So what’s this have to do with credit repair services? Continue reading and you’ll see.

A little birdie told us today that some new laws might be passed which state that credit repair services cannot charge a client until the credit repair process is totally complete.

To see why I can almost guarantee this will be a complete disaster, let’s take a look why the prohibition failed so badly.

Prohibition Failure: Legitimate, saloons were closed and replaced by illegal speakeasy’s. By 1925 there were over 100,000 illegal speakeasy’s selling alcohol.

Credit Repair Simile: Legitimate, regulated and bonded credit repair companies will be put out of business and replaced with illegal speakeasy’s. Only they’ll be called Credit Consulting & Identity Theft companies.

Prohibition Failure: Poverty levels rose because gangsters now controlled the price of alcohol. They set the market and I’m guessing gangsters had very few pricing wars.

Credit Repair Simile: Credit Repair is finally starting to find its place in the market and a general pricing standards have been set. But Credit Consulting will be a whole new industry. No set pricing, no regulation….a gangsters dream.

Prohibition Failure: Manufacturers had to make alcohol underground. Alcohol made in the dusty basement of a guy named machine gun jack wasn’t always the best quality. In fact, deaths from poisoned liquor rose from 1,064 in 1920 to 4,154 in 1925

Credit Repair Simile: Ok you might not die from a bad credit repair job, but if a credit repair company is operating on the up and up, knows he’s regulated, has a bond, you’re probably going to get a better effort then some scumbag who just set up shop to take advantage of the governments screw up. Remember, credit consulting has no rules yet.

Now I know the prohibition is not the best example, but you see where I’m going with this. I said it before, and I’ll say it again.

People will always have errors on their credit; and they should always have the right to hire a professional to help with their bad credit.

So what’s the solution? I said it right here