15 U.S.C. § 1679c: Disclosures

Summary

Credit repair companies must give you a separate written notice before you sign any contract. The notice must tell you that you can dispute wrong information in your credit report by contacting the credit bureau yourself. It must say accurate, current information cannot be removed by the company and that negative facts stay on your report only if over 7 years (bankruptcies can stay up to 10 years). It must explain your right to get a copy of your credit report (there may be a fee unless you were turned down for credit, a job, insurance, or housing because of the report in the past 60 days). The notice must say credit bureaus should help you understand your file and that you can get a free report if you are unemployed and will seek work within 60 days, receive public welfare, or suspect fraud. It must tell you that you can sue the company for breaking the credit repair law and that you can cancel the contract within 3 business days. It must also explain how to dispute information with a bureau, that the bureau must reinvestigate for free, and that you can add a short statement to your file if the dispute is not fixed. The Federal Trade Commission enforces these rules. The notice must be a separate paper, not part of the contract or other materials. The company must keep a signed copy showing you got the notice for 2 years after you sign it.

Title 15, §1679c

Commerce and Trade, Source: USLM XML via OLRC

(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: “Consumer Credit File Rights Under State and Federal Law “You have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly. However, neither you nor any ‘credit repair’ company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for 10 years. “You have a right to obtain a copy of your credit report from a credit bureau. You may be charged a reasonable fee. There is no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in your credit report within the preceding 60 days. The credit bureau must provide someone to help you interpret the information in your credit file. You are entitled to receive a free copy of your credit report if you are unemployed and intend to apply for employment in the next 60 days, if you are a recipient of public welfare assistance, or if you have reason to believe that there is inaccurate information in your credit report due to fraud. “You have a right to sue a credit repair organization that violates the Credit Repair Organization Act. This law prohibits deceptive practices by credit repair organizations. “You have the right to cancel your contract with any credit repair organization for any reason within 3 business days from the date you signed it. “Credit bureaus are required to follow reasonable procedures to ensure that the information they report is accurate. However, mistakes may occur. “You may, on your own, notify a credit bureau in writing that you dispute the accuracy of information in your credit file. The credit bureau must then reinvestigate and modify or remove inaccurate or incomplete information. The credit bureau may not charge any fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the credit bureau. “If the credit bureau’s reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the credit bureau, to be kept in your file, explaining why you think the record is inaccurate. The credit bureau must include a summary of your statement about disputed information with any report it issues about you. “The Federal Trade Commission regulates credit bureaus and credit repair organizations. For more information contact: “The Public Reference Branch “Federal Trade Commission “Washington, D.C. 20580”. (b) Separate statement requirement The written statement required under this section shall be provided as a document which is separate from any written contract or other agreement between the credit repair organization and the consumer or any other written material provided to the consumer. (c) Retention of compliance records (1) In general The credit repair organization shall maintain a copy of the statement signed by the consumer acknowledging receipt of the statement. (2) Maintenance for 2 years The copy of any consumer’s statement shall be maintained in the organization’s files for 2 years after the date on which the statement is signed by the consumer.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Credit Repair Organization Act, referred to in subsec. (a), probably means the Credit Repair Organizations Act, Pub. L. 90–321, title IV, as added Pub. L. 104–208, div. A, title II, § 2451, Sept. 30, 1996, 110 Stat. 3009–454, which is classified generally to this subchapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of this title and Tables.

Prior Provisions

For a prior section 405 of Pub. L. 90–321, see note set out under section 1679 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable after the end of the 6-month period beginning on Sept. 30, 1996, except with respect to contracts entered into by a credit repair organization before the end of such period, see section 413 of Pub. L. 90–321, as added by Pub. L. 104–208, set out as a note under section 1679 of this title.

§1679c Disclosures