Source: http://linandwoodlaw.com/bankruptcy-services-credit-repair-litigation/
Timestamp: 2017-05-29 20:54:14
Document Index: 779204555

Matched Legal Cases: ['§ 1679', '§ 1679', '§ 1679', '§ 103', '§ 103', '§ 1679', '§ 603', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 1679', '§ 2451']

+++ Credit Repair Company Complaints | Credit Repair Company Rip-off | Credit Repair Company Harassment
Credit Repair LitigationHave You Been Ripped Off or Misled by a Consumer Credit Repair Company?
Unfortunately the business practices of credit repair companies required additional laws to help protect consumers. All accurate negative history on a credit report can be listed on a credit report for seven years pursuant to the Fair Credit Reporting Act. The key word there is accurate negative credit history. If you have negative credit history that is not accurate it should be removed and you do not have to pay anyone to do it. You can do it yourself. Go to:
The Federal Trade Commission does its best to shut down fraudulent credit repair companies and debt relief companies. See what the FTC has to say about certain types of companies by going to:
http://www.ftc.gov/opa/reporter/finance/creditanddebt.shtml
Or read about the FTC shutting down a fraudulent company at:
The Credit Repair Reorganizations Act provides:
The CROA, 15 U.S.C. § 1679, et. seq., prohibits a variety of false and misleading statements, as well as fraud by credit repair organizations. Credit repair organizations may not receive payment before any promised service is “fully performed.” Services must be under written contract, which must include a detailed description of the services and contract performance time. Credit repair organizations must provide the consumer with a separate written disclosure statement describing the consumer’s rights before entering into the contract. Consumers can sue to recover the greater of the amount paid or actual damages, punitive damages, costs, and attorney’s fees for violations of the CROA. The states and the FTC may also enforce the CROA.
Suing Credit Repair Companies for Damages
If you chose to sue a credit repair company you can receive your money back that you paid for the services or your actual damages, whichever is greater. The CROA also provides for an award of punitive damages. Punitive damages are to punish the company for their violations of the CROA. There are a number of factors the court will consider when awarding punitive damages. The court will consider the frequency and persistence of noncompliance by the credit repair company, the nature of the violation, whether the violation was intentional and in the case of a class action lawsuit the number of consumers ripped off. If you prevail you are entitle to the cost of the lawsuit plus reasonable attorneys’ fees.
No person may make a 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 any consumer reporting agency or any person who has extend credit to the consumer, or to whom the consumer has applied or is applying for an extension of credit.
No person may make any statement, or counsel or advise any consumer to make any statement with 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 any consumer reporting agency; or any person who has extended credit to the consumer; or to whom the consumer has applied or is applying for an extension of credit; make or use any untrue or misleading representation of the services of the credit repair organization; or 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. 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. CHAPTER 2–CREDIT REPAIR ORGANIZATIONS
TITLE IV–CREDIT REPAIR ORGANIZATIONS”
413. Effective date. SEC. 401. SHORT TITLE.
This title may be cited as the ‘Credit Repair Organizations Act’.
SEC. 402. FINDINGS AND PURPOSES.(2)
(b) Purposes.–The purposes of this title are–
SEC. 403. DEFINITIONS.(3)
(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.
(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–
(i) any nonprofit organization which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986;
(ii) any creditor (as defined in section 103 of the Truth in Lending Act),(4) 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; or
(4) Credit.–The term ‘credit’ has the meaning given to such term in section 103(e) of this Act.(5)
SEC. 404. PROHIBITED PRACTICES.(6)
(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 603(f) of this Act);(7) or
(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–
(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.
SEC. 405. DISCLOSURES.(8)
‘Consumer Credit File Rights Under State and Federal Law
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.–
(1) In general.–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.
SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.(9)
(a) Written Contracts Required.–No services may be provided by any credit repair organization for any consumer–
(b) Terms and Conditions of Contract.–No contract referred to in subsection (a) meets the requirements of this subsection unless such contract includes (in writing)–
(2) a full and detailed description of the services to be performed by the credit repair organization for the consumer, including–
(B) an estimate of–
(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 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.’.
SEC. 407. RIGHT TO CANCEL CONTRACT.(10)
(a) In General. — 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.
( purchaser’s signature ).’.
(c) Consumer Copy of Contract Required.–Any consumer who enters into any contract with any credit 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.(11)
(a) Consumer Waivers Invalid.–Any waiver by any consumer of any protection provided by or any right of the consumer under this title–
(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 contract for services which does not comply with the applicable provisions of this title–
SEC. 409. CIVIL LIABILITY.(12)
(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–
(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–
(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 Damages.–In determining the amount of any liability of any credit repair organization under subsection (a)(2), the court shall consider, among other relevant factors–
SEC. 410. ADMINISTRATIVE ENFORCEMENT.(13)
(a) In General.–Compliance with the requirements 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 Violations of Federal Trade Commission Act.–
(1) In general. — For the purpose of the exercise by the Federal Trade Commission of the Commission’s functions and powers under the Federal Trade Commission Act, any violation of any requirement or prohibition imposed under this title 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.
(2) 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 title by any person subject to enforcement by the Federal Trade Commission 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 organization–
(c) State Action for Violations.–
(1) Authority of states. — In 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 title, 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.
(4) Limitation. — Whenever the Federal Trade Commission has instituted a civil action for violation of this title, 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 title that is alleged in that complaint.
SEC. 411. STATUTE OF LIMITATIONS.(14)
Any action to enforce any liability under this title may be brought before the later of–
(2) in any case in which any credit repair organization has materially and willfully misrepresented any information which–
(A) the credit repair organization is required, 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 5-year period beginning on the date of the discovery by the consumer of the misrepresentation.
SEC. 412. RELATION TO STATE LAW.(15)
SEC. 413. EFFECTIVE DATE.(16)
This title shall apply after the end of the 6-month period beginning on the date of the enactment of the Credit Repair Organizations Act,(17) except with respect to contracts entered into by a credit repair organization before the end of such period.
1. Pub. L. No. 104-208, 110 Stat. 3009 (Sept. 30, 1996). The amendments to the credit statutes are in Title II of the Act, entitled “Economic Growth and Regulatory Paperwork Reduction.” Section 401 is not codified in U.S. Code. The footnotes in this copy of the Act are not part of the Act, but are cross-references inserted by the FTC staff for the convenience of the reader.
2. 15 U.S.C. § 1679.
3. 15 U.S.C. § 1679a.
4. Truth in Lending Act § 103(f) states in pertinent part: “The term ‘creditor’ refers only to creditros who regularly extend, or arrange for the extension of, credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, whether in connection with loans, sales pf property or services, or otherwise. . . .”
5. TILA § 103(e) states: “The term ‘credit’ means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.”
6. 15 U.S.C. § 1679b.
7. Fair Credit Reporting Act (FCRA) § 603(f) states: “The term ‘consumer reporting agency’ means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.”
8. 15 U.S.C. § 1679c.
9. 15 U.S.C. § 1679d.
10. 15 U.S.C. § 1679e.
11. 15 U.S.C. § 1679f.
12. 15 U.S.C. § 1679g.
13. 15 U.S.C. § 1679h.
14. 15 U.S.C. § 1679i.
15. 15 U.S.C. § 1679j.
16. Not codified in United States Code. Cite to Pub. L. 104-28, Div. A, title II, § 2451, Section 413, 110 Stat. 3009.
17. The statute was signed by the President on September 30, 1996.