U.S.C. 1681a et seq.), as amended by section 114(b) of
this Act, is further amended by adding after the item re-
lating to section 624 the following:
‘‘625. Disclosures to FBI for counterintelligence purposes.’’.
(c) REPEAL OF PROVISIONS.—The following provi-
sions of the Fair Credit Reporting Act, as amended by
this section, are repealed:
(1) Section 625.
(2) In the table of contents at the beginning of
the Fair Credit Reporting Act, the item relating to
section 625.
SEC. 124. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments and repeals made by this title shall
take effect 365 days after the date of the enactment of
this Act.
(b) EXCEPTIONS.—
(1) The amendment made by section 121 shall
take effect 90 days after the date of the enactment
of this Act.
(2) The amendments made by subsections (a)
and (b) of section 123 shall take effect on the date
of the enactment of this Act.
(3) Subsection (c) of section 123 shall take ef-
fect on the date that is 5 years after the date of the
enactment of this Act.
SEC. 125. RELATIONSHIP TO OTHER LAW.
Nothing in this title or the amendments made by this
Act shall be considered to supersede or otherwise affect
section 2721 of title 18, United States Code, with respect
to motor vehicle records for surveys, marketing, or solici-
tations.
SEC. 126. TECHNICAL CORRECTION TO DEPOSITORY INSTI-
TUTIONS MANAGEMENT INTERLOCKS ACT.
Section 209(c)(1)(C) of the Depository Institution
Management Interlocks Act (12 U.S.C. 3207(c)(1)(C), as
added by section 338(b) of the Riegle Community Devel-
opment and Regulatory Improvement Act of 1994) is
amended by inserting ‘‘or institutions’’ after ‘‘newly char-
tered institutions’’.
TITLE II—CREDIT REPAIR
ORGANIZATIONS
SEC. 201. REGULATION OF CREDIT REPAIR ORGANIZA-
TIONS.
Title IV of the Consumer Credit Protection Act 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.
‘‘This title may be cited as the ‘Credit Repair Organi-
zations Act’.
‘‘SEC. 402. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—The Congress makes the following
findings:
‘‘(1) Consumers have a vital interest in estab-
lishing and maintaining their creditworthiness 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 or-
ganizations which offer to improve the credit stand-
ing of such consumers.
‘‘(2) Certain advertising and business practices
of some companies engaged in the business of credit
repair services have worked a financial hardship
upon consumers, particularly those of limited eco-
nomic means and who are inexperienced in credit
matters.
‘‘(b) PURPOSES.—The purposes of this title are as
follows:
‘‘(1) To ensure that prospective buyers of the
services of credit repair organizations are provided
with the information necessary to make an informed
decision regarding the purchase of such services.
‘‘(2) To protect the public from unfair or decep-
tive advertising and business practices by credit re-
pair organizations.
‘‘SEC. 403. DEFINITIONS.
‘‘For purposes of this title—
‘‘(1) CONSUMER.—The term ‘consumer’ means
an individual.
‘‘(2) CONSUMER
CREDIT
TRANSACTION.—The
term ‘consumer credit transaction’ means any trans-
action in which credit is offered or extended to an
individual for personal, family, or household pur-
poses.
‘‘(3) CREDIT
REPAIR
ORGANIZATION.—The
term ‘credit repair organization’—
‘‘(A) means any person who uses any in-
strumentality of interstate commerce or the
mails to sell, provide, or perform (or represent
that such person can or will sell, provide, or
perform) any service, in return for the payment
of money or other valuable consideration, for
the express or implied purpose of—
‘‘(i) improving any consumer’s credit
record, credit history, or credit rating; or
‘‘(ii) providing advice or assistance to
any consumer with regard to any activity
or service described in clause (i); and
‘‘(B) does not include—
‘‘(i) any nonprofit organization which
is exempt from taxation under section
501(c)(3) of the Internal Revenue Code of
1986;
‘‘(ii) any attorney-at-law who is a
member of the bar of the highest court of
any State or otherwise licensed under the
laws of any State, with respect to services
rendered which are within the scope of reg-
ulations applicable to members of such bar
or such licensees; or
‘‘(iii) any creditor (as defined in sec-
tion 103 of the Truth in Lending Act),
with respect to any consumer, to the extent
the creditor is assisting the consumer to
restructure any debt owed by the consumer
to the creditor.
‘‘(4) CREDIT.—The term ‘credit’ has the mean-
ing given to such term in section 103(e) of this Act.
‘‘SEC. 404. PROHIBITED PRACTICES.
‘‘(a) IN GENERAL.—No person may—
‘‘(1) make any statement, or counsel or advise
any consumer to make any statement, which is un-
true or misleading (or which, upon the exercise of
reasonable care, should be known by the credit re-
pair organization, officer, employee, agent, or other
person to be untrue or misleading) with respect to
any consumer’s creditworthiness, credit standing, or
credit capacity to—
‘‘(A) any consumer reporting agency (as
defined in section 603(f) of this Act); or
‘‘(B) any person—
‘‘(i) who has extended credit to the
consumer; or
‘‘(ii) to whom the consumer has ap-
plied or is applying for an extension of
credit;
‘‘(2) make any statement, or counsel or advise
any consumer to make any statement, the intended
effect of which is to alter the consumer’s identifica-
tion to prevent the display of the consumer’s credit
record, history, or rating for the purpose of conceal-
ing adverse information that is accurate and not ob-
solete to—
‘‘(A) any consumer reporting agency;
102
‘‘SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.
‘‘(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 re-
quirements 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 require-
ments of this subsection unless such contract includes the
following information (in writing):
‘‘(1) The terms and conditions of payment, in-
cluding 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 serv-
ices to be performed by the credit repair organiza-
tion for the consumer, including—
‘‘(A) all guarantees of performance; and
‘‘(B) an estimate of—
‘‘(i) the date by which the perform-
ance of the services (to be performed by
103
the credit repair organization or any other
person) will be complete; or
‘‘(ii) the length of the period nec-
essary to perform such services.
‘‘(3) The credit repair organization’s name and
principal business address.
‘‘(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 pen-
alty 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.’.
‘‘SEC. 407. RIGHT TO CANCEL CONTRACT.
‘‘(a) IN GENERAL.—Any consumer may cancel any
contract with any credit repair organization without pen-
alty or obligation by notifying the credit repair organiza-
tion of the consumer’s intention to do so at any time be-
fore 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, but for this subsection, become enforceable
against the parties.
104
‘‘(b) CANCELLATION FORM AND OTHER INFORMA-
TION.—Each contract shall be accompanied by a form, in
duplicate, which has the heading ‘Notice of Cancellation’
and contains in bold face type the following statement:
‘‘ ‘You may cancel this contract, without any
penalty or obligation, at any time before midnight of
the 3rd day which begins after the date the contract
is signed by you.
‘‘ ‘To cancel this contract, mail or deliver a
signed, dated copy of this cancellation notice, or any
other written notice to [ name of credit repair
organization ] 
at 
[ address 
of 
credit 
repair
organization ] before midnight on [ date ]
‘‘ ‘I hereby cancel this transaction,
[ date ]
[ purchaser’s signature ].’.
‘‘(c) CONSUMER COPY OF CONTRACT REQUIRED.—
Any consumer who enters into any contract with any cred-
it repair organization shall be given, by the organization—
‘‘(1) a copy of the completed contract and the
disclosure statement required under section 405; and
‘‘(2) a copy of any other document the credit
repair organization requires the consumer to sign,
at the time the contract or the other document is signed.
105
‘‘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.
‘‘(b) ATTEMPT TO OBTAIN WAIVER.—Any attempt
by any person to obtain a waiver from any consumer of
any protection provided by or any right of the consumer
under this title shall be treated as a violation of this title.
‘‘(c) CONTRACTS NOT IN COMPLIANCE.—Any con-
tract for services which does not comply with the applica-
ble provisions of 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—
106
‘‘(A) the amount of any actual damage
sustained by such person as a result of such
failure; or
‘‘(B) any amount paid by the person to the
credit repair organization.
‘‘(2) PUNITIVE DAMAGES.—
‘‘(A) INDIVIDUAL ACTIONS.—In the case of
any action by an individual, such additional
amount as the court may allow.
‘‘(B) CLASS ACTIONS.—In the case of a
class action, the sum of—
‘‘(i) the aggregate of the amount
which the court may allow for each named
plaintiff; and
‘‘(ii) the aggregate of the amount
which the court may allow for each other
class member, without regard to any mini-
mum individual recovery.
‘‘(3) ATTORNEYS’ FEES.—In the case of any
successful action to enforce any liability under para-
graph (1) or (2), the costs of the action, together
with reasonable attorneys’ fees.
‘‘(b) FACTORS TO BE CONSIDERED IN AWARDING
PUNITIVE DAMAGES.—In determining the amount of any
liability of any credit repair organization under subsection
111
‘‘(2) in any case in which any credit repair or-
ganization has materially and willfully misrepre-
sented any information which—
‘‘(A) the credit repair organization is re-
quired, by any provision of this title, to disclose
to any consumer; and
‘‘(B) is material to the establishment of
the credit repair organization’s liability to the
consumer under this title,
the end of the 2-year period beginning on the date
of the discovery by the consumer of the misrepresen-
tation.
‘‘SEC. 412. RELATION TO STATE LAW.
‘‘This title shall not annul, alter, affect, or exempt
any person subject to the provisions of this title from com-
plying 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.
‘‘This title shall apply after the end of the 6-month
period beginning on the date of the enactment of the Cred-
it Repair Organizations Act, except with respect to con-
tracts entered into by a credit repair organization before
the end of such period.’’.
112
TITLE III—TRUTH IN LENDING
ACT
SEC. 301. TREATMENT OF DELIVERY FEES AND INTANGI-
BLES TAXES.
(a) IN GENERAL.—Section 106(a) of the Truth in
Lending Act (15 U.S.C. 1605) is amended by adding at
the end the following new paragraph:
‘‘(6) Taxes levied on security instruments or on
documents evidencing indebtedness if such taxes
must be paid as a precondition to recording the in-
strument securing the evidence of indebtedness.’’.
(b) EXCLUDED FEES.—Section 106(e) of the Truth
in Lending Act (15 U.S.C. 1605(e)) is amended by insert-
ing ‘‘, if bona fide and reasonable’’ before the colon.
(c) FEES FOR DELIVERY CHARGES.—Section 106(e)
of the Truth in Lending Act (15 U.S.C. 1605(e)) is
amended by adding at the end the following new para-
graph:
‘‘(7) Fees for delivery charges imposed by third
parties (including settlement agents, attorneys, and
escrow and title companies) if the creditor does not
retain the charges and the fees do not exceed $20
per delivery, or $50 per consumer transaction.’’.
113
(d) APPLICABILITY.—The amendments made by this
section shall apply to all consumer credit transactions con-
summated on or after February 1, 1995.
SEC. 302. LIMITATIONS ON LIABILITY.
(a) IN GENERAL.—Chapter 2 of the Truth in Lend-
ing Act (15 U.S.C. 1631 et seq.) is amended by adding
at the end the following new section:
‘‘SEC. 139. CERTAIN LIMITATIONS ON LIABILITY.
‘‘(a) IN GENERAL.—For transactions consummated
prior to February 1, 1995, a creditor or assignee shall
have no civil or criminal liability under this title, nor shall
a consumer have extended rescission rights under section
125, due to a creditor’s improper disclosure of—
‘‘(1) delivery charges actually and reasonably
imposed by the creditor, or any delivery charges im-
posed by third parties (including settlement agents,
attorneys, and escrow and title companies), if the
creditor does not retain the charges; or
‘‘(2) taxes levied on security instruments or
documents evidencing indebtedness.
‘‘(b) APPLICABILITY.—Subsection (a) does not apply
to—
‘‘(1) any individual action or counterclaim
brought under this title filed prior to October 1,
114
1994, that alleged (prior to such date) improper dis-
closure of delivery charges or taxes;
‘‘(2) any class action brought under this title in
which a class was certified prior to October 1, 1994,
that alleged (prior to such date) improper disclosure
of delivery charges or taxes;
‘‘(3) the named individual plaintiffs in any class
action filed under this title prior to October 1, 1994,
that alleged (prior to such date) improper disclosure
of delivery charges or taxes; or
‘‘(4) any consumer credit transaction in which
a notice of rescission was sent to the creditor prior
to October 1, 1994.’’.
(b) AMENDMENT TO THE TABLE OF SECTIONS.—The
table of sections for chapter 2 of the Truth in Lending
Act is amended by inserting after the item relating to sec-
tion 138 the following:
‘‘139. Certain limitations on liability.’’.
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