Source: https://www.boostcredit101.com/credit-repair-organizations-act
Timestamp: 2019-12-08 15:15:49
Document Index: 773200522

Matched Legal Cases: ['§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679']

Credit Repair Organizations Act - Blog Boost Credit
15 USC § 1679
(a) Findings. The Congress makes the following findings:
(1) Consumers have a vital interest in establishing and maintaining their credit worthiness 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 organizations which offer to improve the credit standing 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 economic means and who are inexperienced in credit matters.
(b) Purposes. The purposes of this subchapter are—
(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; and
(2) to protect the public from unfair or deceptive advertising and business practices by credit repair organizations.
15 USC § 1679a
For purposes of this subchapter, the following definitions apply:
(1) Consumer
The term “consumer” means an individual.
(2) Consumer credit transaction
The term “consumer credit transaction” means any transaction in which credit is offered or extended to an individual for personal, family, or household purposes.
(3) Credit repair organizationThe term “credit repair organization”—
(A) means any person who uses any instrumentality 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—
improving any consumer’s credit record, credit history, or credit rating; or
any nonprofit organization which is exempt from taxation under section 501(c)(3) of title 26;
(iii) any depository institution (as that term is defined in section 1813 of title 12) or any Federal or State credit union (as those terms are defined in section 1752 of title 12), or any affiliate or subsidiary of such a depository institution or credit union.
(4) Credit
The term “credit” has the meaning given to such term in section 1602(e) [1] of this title.
15 USC § 1679b
(a) In general. No person may—
(1) make any statement, or counsel or advise any consumer to make any statement, which is untrue or misleading (or which, upon the exercise of reasonable care, should be known by the credit repair organization, officer, employee, agent, or other person to be untrue or misleading) with respect to any consumer’s credit worthiness, credit standing, or credit capacity to—
(A) any consumer reporting agency (as defined in section 1681a(f) of this title); or
(B) any person—
(ii) to whom the consumer has applied 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 identification to prevent the display of the consumer’s credit record, history, or rating for the purpose of concealing adverse information that is accurate and not obsolete to—
(3) make or use any untrue or misleading representation of the services of the credit repair organization; or
(4) engage, directly or indirectly, in any act, practice, or course of business that constitutes or results in the commission of, or an attempt to commit, a fraud or deception on any person in connection with the offer or sale of the services of the credit repair organization.
(b) Payment in advance
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.
15 USC § 1679c
(a) Disclosure required
“You have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly. However, neither you nor any ‘credit repair’ company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for 10 years.
“You have a right to sue a credit repair organization that violates the Credit Repair Organization Act. This law prohibits deceptive practices by credit repair organizations.
“You have the right to cancel your contract with any credit repair organization for any reason within 3 business days from the date you signed it.
“If the credit bureau’s reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the credit bureau, to be kept in your file, explaining why you think the record is inaccurate. The credit bureau must include a summary of your statement about disputed information with any report it issues about you.
“The Public Reference Branch
“Federal Trade Commission
“Washington, D.C. 20580”.
(b) Separate statement requirement
The written statement required under this section shall be provided as a document which is separate from any written contract or other agreement between the credit repair organization and the consumer or any other written material provided to the consumer.
(c) Retention of compliance records
The credit repair organization shall maintain a copy of the statement signed by the consumer acknowledging receipt of the statement.
(2) Maintenance for 2 years
The copy of any consumer’s statement shall be maintained in the organization’s files for 2 years after the date on which the statement is signed by the consumer.
15 USC § 1679d
Credit Repair Organizations COntracts
(a) Written contracts requiredNo services may be provided by any credit repair organization for any consumer—
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
(b) Terms and conditions of contractNo contract referred to in subsection (a) meets the requirements of this subsection unless such contract includes (in writing)—
a full and detailed description of the services to be performed by the credit repair organization for the consumer, including—
the credit repair organization’s name and principal business address; and
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.”.
15 USC § 1679e
Any consumer may cancel any contract with any credit repair organization without penalty or obligation by notifying the credit repair organization of the consumer’s intention to do so at any time before 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 information
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 requiredAny consumer who enters into any contract with any credit repair organization shall be given, by the organization—
15 USC § 1679f
(a) Consumer waivers invalidAny waiver by any consumer of any protection provided by or any right of the consumer under this subchapter—
(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 subchapter shall be treated as a violation of this subchapter.
(c) Contracts not in complianceAny contract for services which does not comply with the applicable provisions of this subchapter—
15 USC § 1679g
(a) Liability establishedAny person who fails to comply with any provision of this subchapter 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—
the amount of any actual damage sustained by such person as a result of such failure; or
any amount paid by the person to the credit repair organization.
Individual actions. In the case of any action by an individual, such additional amount as the court may allow.
Class actions. In the case of a class action, the sum of—
(3) Attorneys’ fees. In the case of any successful action to enforce any liability under paragraph (1) or (2), the costs of the action, together with reasonable attorneys’ fees.
(b) Factors to be considered in awarding punitive damagesIn determining the amount of any liability of any credit repair organization under subsection (a)(2), the court shall consider, among other relevant factors—
15 USC § 1679h
Compliance with the requirements imposed under this subchapter with respect to credit repair organizations shall be enforced under the Federal Trade Commission Act [15 U.S.C. 41 et seq.] by the Federal Trade Commission.
(b) Violations of this subchapter treated as violations of Federal Trade Commission Act
For the purpose of the exercise by the Federal Trade Commission of the Commission’s functions and powers under the Federal Trade Commission Act [15 U.S.C. 41 et seq.], any violation of any requirement or prohibition imposed under this subchapter with respect 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 [15 U.S.C. 45(a)].
Enforcement authority under other law
All functions and powers of the Federal Trade Commission under the Federal Trade Commission Act shall be available to the Commission to enforce compliance with this subchapter by any person subject to enforcement by the Federal Trade Commission pursuant to this subsection, including the power to enforce the provisions of this subchapter 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 organization—
(1) Authority of StatesIn addition to such other remedies as are provided under State law, whenever the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this subchapter, the State—
(2) Rights of Commission
(A) Notice to Commission
The State shall serve prior written notice of any civil action under paragraph (1) upon the Federal Trade Commission and provide the Commission with a copy of its complaint, except in any case where such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action.
(B) Intervention. The Commission shall have the right—
(3) Investigatory powers
For purposes of bringing any action under this subsection, nothing in this subsection shall prevent the chief law enforcement officer, or an official or agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.
Whenever the Federal Trade Commission has instituted a civil action for violation of this subchapter, no State may, during the pendency of such action, bring an action under this section against any defendant named in the complaint of the Commission for any violation of this subchapter that is alleged in that complaint.
15 USC § 1679i
Any action to enforce any liability under this subchapter may be brought before the later of—
in any case in which any credit repair organization has materially and willfully misrepresented any information which—
is material to the establishment of the credit repair organization’s liability to the consumer under this subchapter, the end of the 5-year period beginning on the date of the discovery by the consumer of the misrepresentation.
Relation to State Law
This subchapter shall not annul, alter, affect, or exempt any person subject to the provisions of this subchapter from complying with any law of any State except to the extent that such law is inconsistent with any provision of this subchapter, and then only to the extent of the inconsistency.