15 U.S.C. § 1679b — Prohibited practices
submitted 30 years ago by Pub. L. 90-321 to r/title-15-COMMERCE-AND-TRADE · 298 words · no verdicts yet
This section bans deceptive statements and conduct connected with credit-repair services. It also bars credit-repair organizations from taking payment before fully performing the service.
(a) No person may: (1) make, or advise a consumer* to make, an untrue or misleading statement about the consumer’s creditworthiness, credit* standing, or credit capacity to a consumer reporting agency or to a person who extended credit or is considering extending credit, when the organization or its officer, employee, agent, or other person knows or reasonably should know the statement is untrue or misleading; (2) make, or advise a consumer to make, a statement intended to change the consumer’s identity so accurate, current, nonobsolete adverse information will not appear to a consumer reporting agency or to a current or potential creditor; (3) make or use an untrue or misleading claim about the organization’s services; or (4) directly or indirectly engage in an act, practice, or business course that commits or attempts fraud or deception in offering or selling those services.
(b) A credit repair organization* may not charge or receive money or other valuable consideration for a service until it has fully performed that service.
No person may—
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—
any consumer reporting agency (as defined in section 1681a(f) of this title); 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 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—
any consumer reporting agency;
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.
Source credit: (Pub. L. 90–321, title IV, § 404, as added Pub. L. 104–208, div. A, title II, § 2451, Sept. 30, 1996, 110 Stat. 3009–456.)
- 1996Enacted · Pub. L. 90-321 · 110 Stat. 3009
A history note hasn’t been published yet. The record shows enactment by Pub. L. 90-321 on 1996-09-30.
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