Compliance

F.A.Q.

Frequently Asked Questions.

There are many rules we must follow to be in compliance of Federal and State Law.

Just to name a few of the things to look for:
Credit Repair Companies...

  • Cannot ask you to sign any kind of form waiving your rights under the CROA.
  • Cannot charge you until the work has been performed.
  • Cannot alter your identity, get a new EIN or new identity, to try to get a new credit history.
  • Cannot guarantee removal of accurate items.
  • Cannot advise you to be dishonest about your credit history.
  • Must provide a full disclosure of fees, cancellation policy and consumer disclosure.
  • Must provide an estimate of the time it will take to complete the services.
  • Must provide a visible statement letting you know you can cancel the contract within 3 business days.
  • Must provide a written service agreement.

If you are considering hiring a company that is violating any of these,

We recommend that you reconsider and choose us instead.

Title IV of the Consumer Credit Protection Act
(Public Law 90-321, 82 Stat. 164) is amended to read as follows:

TITLE IV--CREDIT REPAIR
ORGANIZATIONS''

Sec.

  • 401. Short title.
  • 402. Findings and purposes.
  • 403. Definitions.
  • 404. Prohibited practices.
  • 405. Disclosures.
  • 406. Credit repair organizations contracts.
  • 407. Right to cancel contract.
  • 408. Noncompliance with this title.
  • 409. Civil liability.
  • 410. Administrative enforcement.
  • 411. Statute of limitations.
  • 412. Relation to State law.
  • 413. Effective date.

SEC. 401. SHORT TITLE.(2)

This title may be cited as the ‘Credit Repair Organizations Act’.

SEC. 402. FINDINGS AND PURPOSES.(3)

(a) Findings.–The Congress makes the following findings:

(1) Consumers have a vital interest in establishing and maintaining their credit worthiness and credit standing in order to obtain and use credit. As a result, consumers who have experienced credit problems may seek assistance from credit repair organizations which offer to improve the credit standing of such consumers.

SEC. 403. DEFINITIONS.(4)

For purposes of this title, the following definitions apply:

(1) Consumer. — The term ‘consumer’ means an individual.

(2) Consumer credit transaction. — The term ‘consumer credit transaction’ means any transaction in which credit is offered or extended to an individual for personal, family, or household purposes.

SEC. 404. PROHIBITED PRACTICES.(7)

(a) In General.–No person may–

(1) make any statement, or counsel or advise any consumer to make any statement, which is untrue or misleading (or which, upon the exercise of reasonable care, should be known by the credit repair organization, officer, employee,

SEC. 405. DISCLOSURES.(9)

(a) Disclosure Required.–Any credit repair organization shall provide any consumer with the following written statement before any contract or agreement between the consumer and the credit repair organization is executed:

SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.(10)

(a) Written Contracts Required.–No services may be provided by any credit repair organization for any consumer–
(1) unless a written and dated contract (for the purchase of such services) which meets the requirements of subsection
(b) has been signed by the consumer;

SEC. 407. RIGHT TO CANCEL CONTRACT.(11)

(a) In General. — Any consumer may cancel any contract with any credit repair organization without penalty or obligation by notifying the credit repair organization of the consumer’s intention to do so at any time before midnight of the 3rd business day which begins after the date on which the contract or agreement between the consumer and the credit repair organization is executed or would,

SEC. 408. NONCOMPLIANCE WITH THIS TITLE.

(a) Consumer Waivers Invalid.–Any waiver by any consumer of any protection provided by or any right of the consumer under this title–

(1) shall be treated as void; and

(2) may not be enforced by any Federal or State court or any other person.

SEC. 409. CIVIL LIABILITY.

(a) Liability Established.–Any person who fails to comply with any provision of this title with respect to any other person shall be liable to such person in an amount equal to the sum of the amounts determined under each of the following paragraphs:
(1) Actual damages.–The greater of–
(A) the amount of any actual damage sustained by such person as a result of such failure; or

SEC. 410. ADMINISTRATIVE ENFORCEMENT.

(a) In General.–Compliance with the requirements imposed under this title with respect to credit repair organizations shall be enforced under the Federal Trade Commission Act by the Federal Trade Commission.
(b) Violations of This Title Treated as Violations of Federal Trade Commission Act.–

SEC. 411. STATUTE OF LIMITATIONS.(15)

Any action to enforce any liability under this title may be brought before the later of– (1) the end of the 5-year period beginning on the date of the occurrence of the violation involved; or (2) in any case in which any credit repair organization has materially and willfully misrepresented any information which–

SEC. 412. RELATION TO STATE LAW.(16)

This title shall not annul, alter, affect, or exempt any person subject to the provisions of this title from complying with any law of any State except to the extent that such law is inconsistent with any provision of this title, and then only to the extent of the inconsistency.

SEC. 413. EFFECTIVE DATE.(17)

This title shall apply after the end of the 6-month period beginning on the date of the enactment of the Credit Repair Organizations Act,(18) except with respect to contracts entered into by a credit repair organization before the end of such period.”.