Back - Next
TITLE 15 - CHAPTER 41 - SUBCHAPTER II–A
Credit Repair Organizations
Summary:
Parts of this act includes: No person (within credit repair company/organization) can counsel and/or advise consumer to make untrue or misleading statements- “(or which, upon the exercise of reasonable care, should be known by the credit repair organization...” Anyone within the credit repair company/organization cannot make false or misleading statements as well.
No credit repair company can charge a fee without first fully performing the service: “No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed.”
This acts establishes liability damages for violations (actual damages, punitive damages, attorney fees) with various factors to consider. The act also establishes SOL for damages by a credit repair organization. This SOL is “the end of the 5-year period beginning on the date of the occurrence of the violation involved...” and/or “the end of the 5-year period beginning on the date of the discovery by the consumer of the misrepresentation.”
Guidelines for contracts, agreements, terms and conditions for the credit repair organization as well as the consumer's right to cancel (within 3 business days). “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.”
Subsection:
1679d Credit repair organizations contracts
1679e Right to cancel contract
1679f Noncompliance with this subchapter