§1679d — Title 15 Commerce and Trade | U.S. Code

Summary

Credit repair companies cannot start working for you unless you have signed a written, dated contract that meets certain rules, and they must wait until after a 3-business-day waiting period that starts the day you sign before doing any work. The contract must spell out how you will pay (including the total amount), exactly what services the company will do (including any promises or guarantees and an estimated completion date or how long it will take), the company’s name and main address, and a clear bold statement right next to your signature saying you can cancel without penalty up until midnight of the 3rd business day after you signed, with a cancellation form attached for details.

Title 15, §1679d

Commerce and Trade — Source: USLM XML via OLRC

(a)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; or

(2)before the end of the 3-business-day period beginning on the date the contract is signed.

(b)No contract referred to in subsection (a) meets the requirements of this subsection unless such contract includes (in writing)—

(1)the terms and conditions of payment, including the total amount of all payments to be made by the consumer to the credit repair organization or to any other person;

(2)a full and detailed description of the services to be performed by the credit repair organization for the consumer, including—

(A)all guarantees of performance; and

(B)an estimate of—

(i)the date by which the performance of the services (to be performed by the credit repair organization or any other person) will be complete; or

(ii)the length of the period necessary to perform such services;

(3)the credit repair organization’s name and principal business address; and

(4)a conspicuous statement in bold face type, in immediate proximity to the space reserved for the consumer’s signature on the contract, which reads as follows: “You may cancel this contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you signed the contract. See the attached notice of cancellation form for an explanation of this right.”.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

For a prior section 406 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.

§1679d Credit Repair Organizations Contracts