Source: https://www.creditrepairtrackingpro.com/startupcoach/state-laws/ohio-credit-repair/
Timestamp: 2019-04-21 20:10:05+00:00

Document:
(A) “Buyer” means an individual who is solicited to purchase or who purchases the services of a credit services organization for purposes other than obtaining a business loan as described in division (B)(6) of section 1343.01 of the Revised Code.
(B) “Consumer reporting agency” has the same meaning as in the “Fair Credit Reporting Act,” 84 Stat. 1128, 15 U.S.C.A. 1681a, as amended.
(e) Altering the buyer’s identification to prevent the display of the buyer’s credit record, history, or rating.
(d) A bank, savings bank, or savings and loan association, or a subsidiary or an affiliate of a bank, savings bank, or savings and loan association. For purposes of division (C)(2)(d) of this section, “affiliate” has the same meaning as in division (A) of section 1101.01 of the Revised Code and “bank,” as used in division (A) of section 1101.01 of the Revised Code, is deemed to include a savings bank or savings and loan association.
(g) A consumer reporting agency that is in substantial compliance with the “Fair Credit Reporting Act,” 84 Stat. 1128, 15 U.S.C.A. 1681a, as amended.
(k) A motor vehicle dealer licensed pursuant to Chapter 4517. of the Revised Code acting within the scope and authority of that license or a motor vehicle auction owner licensed pursuant to Chapters 4517. and 4707. of the Revised Code acting within the scope and authority of that license.
(D) “Extension of credit” means the right to defer payment of debt, or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes. “Extension of credit” does not include a mortgage.
(E) “Mortgage” means any indebtedness secured by a deed of trust, security deed, or other lien on real property.
(F) “Mortgage banker” means any person that makes, services, or buys and sells mortgage loans and is approved by the United States department of housing and urban development, the United States department of veterans affairs, the federal national mortgage association, or the federal home loan mortgage corporation.
(G) “Superintendent of financial institutions” includes the deputy superintendent for consumer finance as provided in section 1181.21 of the Revised Code.
HISTORY: 144 v S 323 (Eff 4-16-93); 146 v H 193 (Eff 11-24-95); 146 v H 282 (Eff 3-4-96); 146 v S 293Å (Eff 9-26-96); 148 v H 283 (Eff 9-29-99); 149 v S 76. Eff 5-2-2002.
SECTION 3. Sections 1 and 2 of this act shall take effect six months after the effective date :11-2-2001] of this act.
§ 4712.02. Credit services organization to obtain registration certificate; notice of change in information; statutory agent for nonresident.
(b) A notarized statement stating that no litigation has been commenced and no unresolved complaint relating to the operation of the organization has been filed with the attorney general, the secretary of state, or any other governmental authority of the United States, this state, or any other state of the United States.
(4) Any other information required at any time by the division.
(B) (1) Except as otherwise provided in division (B)(2) of this section, each credit services organization shall notify the division in writing within thirty days after the date of a change in the information required by division (A) of this section.
(2) Each organization shall notify the division in writing no later than thirty days prior to any change in the information required by division (A)(1) or (2) of this section and shall receive approval from the division before making any such change.
(b) Evidence of the bond required under section 4712.06 of the Revised Code.
(2) Any modification made to the contract described in division (C)(1)(a) of this section shall be filed with the division prior to its use by the organization.
(D) Each credit services organization registering under this section shall maintain a copy of the registration application in its files. The organization shall allow a buyer to inspect the registration application upon request.
(E) Each nonresident credit services organization registering under this section shall designate and maintain a resident of this state as the organization’s statutory agent for purposes of receipt of service of process.
(F) If, in order to issue a certificate of registration to a credit services organization, investigation by the division outside this state is necessary, the division may require the organization to advance sufficient funds to pay the actual expenses of the investigation.
(G) Each credit services organization registering under this section shall use no more than one fictitious or trade name.
(H) (1) A certificate of registration issued by the division pursuant to this section shall expire annually on the thirtieth day of April.
(2) A credit services organization may renew its certificate of registration by filing with the division a renewal application accompanied by a one-hundred-dollar renewal fee.
(I) All money collected by the division pursuant to this section shall be deposited by it in the state treasury to the credit of the consumer finance fund.
(J) (1) No credit services organization shall fail to comply with division (A) of this section.
(2) No credit services organization shall fail to comply with division (B), (D), (E), (F), or (G) of this section.
§ 4712.03. Grounds for suspension, revocation or refusal of certificate.
(A) The applicant or registrant obtained a certificate of registration through any false or fraudulent representation or made any substantial misrepresentation in any registration application.
(B) The applicant or registrant made false promises through advertising or other means or engaged in a continued course of misrepresentations.
(C) The applicant or registrant violated any provision of Chapter 1345. or sections 4712.01 to 4712.14 of the Revised Code or the rules adopted thereunder.
(D) The applicant or registrant was convicted, in a court of competent jurisdiction of this state or any other state, of a felony or any criminal offense involving fraud, or failed to notify the division of financial institutions of any such conviction.
(E) The applicant or registrant engaged in conduct that constituted improper, fraudulent, or dishonest dealings.
§ 4712.04. Statement of rights to be provided to buyer prior to executing contract or receiving consideration.
(4) A complete and accurate statement of the availability of nonprofit budget and debt counseling services.
You have a right to obtain a copy of your credit report from a consumer reporting agency. You may be charged a reasonable fee. However, there is no fee if you have been turned down within the preceding sixty days for credit, employment, insurance, or a rental dwelling because of information in your credit report. The consumer reporting agency must provide someone to help you interpret the information in your credit file.
You have a right to dispute inaccurate information by contacting the consumer reporting agency directly. However, neither you nor any credit services organization has the right to have accurate, current, and verifiable information removed from your consumer reporting agency report. The consumer reporting agency must remove accurate, negative information from your report only if it is more than seven years old. Bankruptcy information can be reported for ten years. Accurate information cannot be permanently removed from the files of a consumer reporting agency. Credit reporting agencies are required to follow reasonable procedures to ensure that creditors report information accurately. However, mistakes may occur.
You may, on your own, notify a consumer reporting agency in writing that you dispute the accuracy of information in your credit file. The consumer reporting agency then must reinvestigate and modify or remove inaccurate information. The consumer reporting agency must not charge any fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the consumer reporting agency.
If reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the consumer reporting agency to keep in your file, explaining why you think the record is inaccurate. The consumer reporting agency must include your statement about disputed information in any reports it issues about you.
(C) The credit services organization shall maintain a copy of the statement, signed by the buyer, acknowledging receipt of the statement. The copy shall be maintained in the organization’s files for at least two years after the date on which the statement is provided to the buyer.
(D) The credit services organization, in a timely manner, shall notify each buyer of all substantive changes in the “Fair Credit Reporting Act,” 84 Stat. 1128, 15 U.S.C.A. 1681a, and shall provide each buyer with copies of those changes.
(E) No credit services organization shall fail to comply with this section.
HISTORY: 144 v S 323 (Eff 4-16-93); 146 v H 193 (Eff 11-24-95); 146 v S 293/D. Eff 9-26-96.
§ 4712.05. Execution and contents of contract; notice of right to cancel; obligations of organization.
“If you, the buyer, have been denied credit within the last sixty days, you may obtain a free copy of the consumer credit report from the consumer reporting agency. You also have the right to dispute inaccurate information in a report.
You may cancel this contract, without any penalty or obligation, within three business days after the date the contract is signed.
(C) The credit services organization, at the time of signing, shall give to the buyer a copy of the completed contract and all other documents the organization requires the buyer to sign.
(D) No credit services organization shall breach a contract described in this section or fail to comply with any obligation arising from such a contract.
(E) No credit services organization shall fail to comply with division (A), (B), or (C) of this section.
(1) A copy of the bond is filed with the division of financial institutions.
(2) The bond is in favor of any person, and of the state for the benefit of any person, that is injured by any violation of sections 4712.01 to 4712.14 of the Revised Code.
(3) The bond is in the amount of fifty thousand dollars.
(4) The bond is maintained and in effect for at least two years after the date on which the credit services organization ceases to conduct business in this state.
(B) Any person claiming against the bond for a violation of sections 4712.01 to 4712.14 of the Revised Code may maintain an action at law against the credit services organization and against the surety company. However, the surety company is liable only for damages awarded under division (A)(2) of section 4712.10 of the Revised Code and not for punitive damages awarded under division (A)(3) of section 4712.10 of the Revised Code. The aggregate liability of the surety company to all persons injured by a credit services organization’s violation of sections 4712.01 to 4712.14 of the Revised Code shall not exceed the amount of the bond.
§ 4712.07. Prohibited sales activities; other prohibitions.
(A) Charge or receive directly or indirectly from a buyer money or other consideration readily convertible into money until all services the organization has agreed to perform for the buyer are completed within the time periods described in division (A)(3) of section 4712.05 of the Revised Code.
(2) Guarantying or otherwise stating that the organization is able to obtain an extension of credit regardless of the buyer’s previous credit problems or credit history, unless the representation clearly discloses the eligibility requirements for obtaining an extension of credit.
(c) A person to which the buyer is applying for an extension of credit.
(2) Division (E)(1) of this section applies to any statement that the organization, salesperson, agent, representative, or independent contractor knows or should know to be false or misleading through the exercise of reasonable care.
(4) Any other record specified by the superintendent.
(L) Engage, directly or indirectly, in any fraudulent or deceptive act, practice, or course of business in connection with the offer or sale of the services of a credit services organization.
§ 4712.08. Fraudulent activities; notice of fraud conviction.
(D) Fail to notify the division of financial institutions if the credit services organization is convicted, in a court of competent jurisdiction of this state or any other state, of a felony or any criminal offense involving fraud.
§ 4712.09. Waiver of rights.
(A) No credit services organization shall cause or attempt to cause a buyer to waive a right under sections 4712.01 to 4712.14 of the Revised Code.
(B) Any waiver by a buyer of a right under sections 4712.01 to 4712.14 of the Revised Code is void.
§ 4712.10. Buyer’s action for damages; injunctions; criminal proceedings; reliance on superintendent’s actions.
(A) (1) A buyer injured by a violation of sections 4712.01 to 4712.14 of the Revised Code may bring an action for recovery of damages.
(2) Damages awarded under division (A)(1) of this section shall not be less than the amount paid by the buyer to the credit services organization, plus reasonable attorney’s fees and court costs.
(3) The buyer may be awarded punitive damages.
(4) No action shall be brought under division (A)(1) of this section after four years after the date of the execution of the contract for services to which the action relates.
(B) (1) The division of financial institutions, the attorney general, or a buyer may bring an action to enjoin a violation of sections 4712.01 to 4712.14 of the Revised Code.
(2) The division may initiate criminal proceedings under sections 4712.01 to 4712.14 of the Revised Code by presenting any evidence of criminal violations to the prosecuting attorney of the county in which the offense may be prosecuted. If the prosecuting attorney does not prosecute the violations, or at the request of the prosecuting attorney, the division shall present any evidence of criminal violations to the attorney general, who may proceed in the prosecution with all the rights, privileges, and powers conferred by law on prosecuting attorneys, including the power to appear before grand juries and to interrogate witnesses before such grand juries. These powers of the attorney general shall be in addition to any other applicable powers of the attorney general.
(C) The remedies provided by this section are in addition to any other remedy provided by law.
(D) In any proceeding or action brought under sections 4712.01 to 4712.14 of the Revised Code, the burden of proving an exemption under those sections is on the person claiming the benefit of the exemption.
(E) No person shall be deemed to violate sections 4712.01 to 4712.14 of the Revised Code with respect to any act taken or omission made in reliance on a written notice, written interpretation, or written report from the superintendent of financial institutions, unless there is a subsequent amendment to those sections, or the rules promulgated thereunder, that affects the superintendent’s notice, interpretation, or report.
§ 4712.11. Violation of consumer sales practices act.
(A) A violation of division (J) of section 4712.02, division (E) of section 4712.04, division (D) or (E) of section 4712.05, division (A) of section 4712.06, section 4712.07 or 4712.08, or division (A) of section 4712.09 of the Revised Code is deemed to be an unfair or deceptive act or practice in violation of section 1345.02 of the Revised Code.
§ 4712.12. Investigations; injunctive relief; cease and desist orders.
(A) The division of financial institutions may investigate alleged violations of sections 4712.01 to 4712.14 of the Revised Code, or the rules adopted thereunder, or complaints concerning any such violation. The division may make application to the court of common pleas for an order enjoining any such violation and, upon a showing by the division that a person has committed, or is about to commit, such a violation, the court shall grant an injunction, restraining order, or other appropriate relief.
(B) In conducting any investigation pursuant to this section, the division may compel, by subpoena, witnesses to testify in relation to any matter over which it has jurisdiction, and may require the production of any book, record, or other document pertaining to such matter. If a person fails to file any statement or report, obey any subpoena, give testimony, produce any book, record, or other document as required by such a subpoena, or permit photocopying of any book, record, or other document subpoenaed, the court of common pleas of any county in this state, upon application made to it by the division, shall compel obedience by attachment proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from the court or a refusal to testify therein.
(C) If the division determines that a person is engaged in, or is believed to be engaged in, activities that may constitute a violation of sections 4712.01 to 4712.14 of the Revised Code, the division may, after notice and a hearing conducted in accordance with Chapter 119. of the Revised Code, issue a cease and desist order. Such an order shall be enforceable in the court of common pleas.
§ 4712.13. Disclosure of registration number.
A credit services organization shall disclose in any printed or published advertisement relating to the credit services organization’s services, the number designated on the certificate of registration that is issued to the credit services organization by the division of financial insitutions under sections 4712.01 to 4712.14 of the Revised Code. No credit services organization shall fail to comply with this section.
The superintendent of financial institutions may adopt, in accordance with Chapter 119. of the Revised Code, reasonable rules to carry out the purposes of sections 4712.01 to 4712.14 of the Revised Code.
Whoever violates division (J) of section 4712.02, division (E) of section 4712.04, division (D) or (E) of section 4712.05, division (A) of section 4712.06, section 4712.07 or 4712.08, or division (A) of section 4712.09 of the Revised Code is guilty of a felony of the fifth degree.
HISTORY: 144 v S 323 (Eff 4-16-93); 146 v S 2. Eff 7-1-96.

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