The rules, and what we do about each one.
Credit repair has a federal statute written specifically for it, an FTC rule that governs how it may be sold, and a state licensing layer on top. Here is each requirement and the exact way this program answers it. If you are shopping other companies, this page doubles as a checklist to hold them to.
The Credit Repair Organizations Act
15 U.S.C. §§ 1679–1679j. It applies to us, and we say so plainly rather than arguing about whether the word "consulting" gets us out of it. It does not: the statute defines a credit repair organization to include anyone paid for "providing advice or assistance to any consumer" about improving a credit record — § 1679a(3)(A)(ii). Advice is the regulated service.
| What the law requires | Where | What we do |
|---|---|---|
| No money may be charged or received for any service before that service is fully performed | § 1679b(b) | $0 to enroll. The consultation fee bills after the report is delivered. Each monthly fee bills after that month's round is performed. |
| No untrue or misleading statement to a bureau, creditor, or consumer | § 1679b(a) | No score guarantees, no "we remove anything," no invented dispute grounds, and we never advise a client to misstate anything. |
| Written disclosure statement given before any contract is signed | § 1679c | The full statutory "Consumer Credit File Rights Under State and Federal Law" notice. Read it here. |
| Written contract stating total of all payments, a full description of services, the estimated completion period, and our name and principal business address | § 1679d(b) | All four, on page one, before signature. The total is a number, not a range. |
| Bold cancellation statement near the signature line | § 1679d(b)(4) | Present, in bold, in the required wording. |
| Notice of Cancellation form, in duplicate, with the contract | § 1679e | Two copies, every time. See the form. |
| Three business day cancellation right, no penalty | § 1679e(a) | Honored, and extended: you may stop at any point afterward without owing for work not yet performed. |
| Any waiver of these rights is void | § 1679f | There is no waiver clause in our contract. There cannot be a valid one. |
The Telemarketing Sales Rule, and why we don't call you
16 CFR Part 310. If credit repair is sold with a telephone call anywhere in the sales path, § 310.4(a)(2) bars the seller from requesting or receiving any payment until two things have both happened: the timeframe in which the services were represented to be delivered has expired, and the consumer has been given a consumer report demonstrating the promised result — a report issued more than six months after that result was achieved.
There is an exemption for calls a consumer places in response to an advertisement. It does not reach credit repair: § 310.6(b)(5) carves out offers described in § 310.4(a)(2). So "they called us first" is not a defense.
That rule makes a phone-sold monthly credit repair program effectively unbillable for the better part of a year. Companies running one anyway are not operating under an exemption; they are operating in the hope of not being looked at.
Our answer: no telephone in the sales path. You read, you enroll, you sign — online, or face to face. Once you are a client we talk as much as you want; by then we are delivering a service, not selling one.
Licensing and bonding
Most states regulate this work again at the state level, and the thresholds differ. Mississippi's Debt Management Services Act (Miss. Code § 81-22-1 et seq.) defines a covered service to include "improving or offering to improve a consumer's credit record, history or rating" — § 81-22-3(b) — which reaches this program on its face. That statute carries a licensing requirement, a $50,000 surety bond, and prescribed contract disclosures, administered by the Mississippi Department of Banking and Consumer Finance.
Status. Licensing and bonding are being completed before this program takes clients, and we serve only states where we are authorized to. If you are reading this page and we have not confirmed your state, we will tell you that instead of enrolling you.
You can verify a credit repair or debt management license yourself with your state's banking or consumer finance department, and you should — with us and with anyone else you are considering.
Six things that are illegal, and get sold every day.
Charging you before anything is delivered
Straight violation of § 1679b(b), however the line item is labeled — enrollment, setup, audit, or consultation.
Guaranteeing a score or a number of points
Nobody controls the scoring model or the furnisher. A guarantee is a misrepresentation.
Promising to remove accurate information
It cannot be done lawfully, and the disclosure the company is required to hand you says so.
Disputing accurate items as "not mine"
That is a false statement to a bureau, and the consumer is the one who signs it.
CPNs, EINs used as SSNs, "file segregation"
This is identity fraud. It is pitched constantly to people who are desperate. Walk away, then report it.
No contract, no disclosure, no cancellation form
If a company cannot produce all three before you pay, that alone tells you what kind of operation it is.
This page describes how we operate and cites the statutes we operate under. It is not legal advice, and we are not a law firm. If you believe a credit repair company has violated your rights, you can file a complaint with the Consumer Financial Protection Bureau, the Federal Trade Commission, or your state attorney general, and CROA § 1679g gives you a private right to sue.