15 U.S.C. § 1679d: Credit repair organizations…

Summary

Credit repair companies must get a written, dated contract that the consumer signs before doing any work, and they cannot start services until after the 3-business-day waiting period that begins the day the contract is signed. The contract must say how and how much the consumer will pay (the total amount), describe the services and any promises, give either a completion date or an estimate of how long the work will take, list the company’s name and main address, and include a bold notice next to the signature saying the consumer can cancel without penalty before midnight of the 3rd business day after signing and to see the attached cancellation form for details.

Title 15, §1679d

Commerce and Trade, Source: USLM XML via OLRC

(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; or

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

(b)Terms and conditions of contract

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