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 and all promises of full
or partial refunds; and
‘‘(B) an estimate of—
‘‘(i) the date by which the perform-
ance 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 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.
‘‘(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.
‘‘ ‘If you cancel, any payment you made under
this contract will be returned before the end of the
10-day period beginning on the date the seller re-
ceives your cancellation notice.
‘‘ ‘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.
‘‘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 credit repair
organization, and any officer, employee, agent, or other
person participating in the conduct of the affairs of any
credit repair organization, which fails to comply with any
provision of this title with respect to any person shall be
liable to such person in an amount equal to the sum of
the amounts determined under each of the following para-
graphs:
‘‘(1) ACTUAL DAMAGES.—The greater of—
‘‘(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
(a)(2), the court shall consider, among other relevant fac-
tors—
‘‘(1) the frequency and persistence of non-
compliance by the credit repair organization;
‘‘(2) the nature of the noncompliance;
‘‘(3) the extent to which such noncompliance
was intentional; and
‘‘(4) in the case of any class action, the number
of consumers adversely affected.
‘‘(c) JURISDICTION.—Any action under this section
may be brought in any United States district court, or
in any other court of competent jurisdiction, before the
later of—
‘‘(1) the end of the 2-year period beginning on
the date of the occurrence of the violation involved;
or
‘‘(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 section,
the end of the 2-year period beginning on the date
of the discovery by the consumer of the mis-
representation.
‘‘SEC. 410. ADMINISTRATIVE ENFORCEMENT.
‘‘(a) IN GENERAL.—Compliance with the require-
ments imposed under this title with respect to credit repair
organizations shall be enforced under the Federal Trade
Commission Act by the Federal Trade Commission.
‘‘(b) VIOLATIONS OF THIS TITLE TREATED AS VIO-
LATIONS OF FEDERAL TRADE COMMISSION ACT.—
‘‘(1) IN GENERAL.—For the purpose of the ex-
ercise by the Federal Trade Commission of the Com-
mission’s functions and powers under the Federal
Trade Commission Act, any violation of any require-
ment or prohibition imposed under this title with re-
spect to credit repair organizations shall constitute
an unfair or deceptive act or practice in commerce
in violation of section 5(a) of the Federal Trade
Commission Act.
‘‘(2) ENFORCEMENT AUTHORITY UNDER OTHER
LAW.—All functions and powers of the Federal
Trade Commission under the Federal Trade Com-
mission Act shall be available to the Commission to
enforce compliance with this title by any person sub-
ject to enforcement by the Federal Trade Commis-
sion pursuant to this subsection, including the power
to enforce the provisions of this title in the same
manner as if the violation had been a violation of
any Federal Trade Commission trade regulation
rule, without regard to whether the credit repair or-
ganization—
‘‘(A) is engaged in commerce; or
‘‘(B) meets any other jurisdictional tests in
the Federal Trade Commission Act.
‘‘(c) STATE ENFORCEMENT OF TITLE.—
‘‘(1) IN
GENERAL.—The attorney general of
any State, or an official or agency designated under
the law of any State, may enforce the provisions of
this title in Federal or State court.
‘‘(2) 
CIVIL
ENFORCEMENT
ACTIONS.—Any
State may bring a civil action in any Federal or
State court to enjoin any violation of this title and
recover damages under this title for consumers who
reside in such State.
‘‘SEC. 411. 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.’’.
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