15 U.S.C. § 1679d — Credit repair organizations contracts

submitted 30 years ago by Pub. L. 90-321 to r/title-15-COMMERCE-AND-TRADE · 261 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section requires a signed, dated contract before credit-repair services begin and imposes a three-business-day waiting period. It lists the contract information and cancellation statement required.

(a) A credit-repair organization may provide services only if the consumer has signed a written, dated contract meeting subsection (b), and not before the three-business-day period beginning on the signing date ends. (b) The contract must state in writing: (1) payment terms and the total payments to the organization or anyone else; (2) a full, detailed description of the services, including all performance guarantees and an estimate of either (A) the completion date or (B) the time needed; (3) the organization’s name and main business address; and (4) in bold type, next to the consumer’s signature space: “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.”

the actual law source: uscode.house.gov ↗public domain

(a) Written contracts required

No services may be provided by any credit repair organization for any consumer—

(1)

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

(2)

before the end of the 3-business-day period beginning on the date the contract is signed.

(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)—

(1)

the terms and conditions of payment, including the total amount of all payments to be made by the consumer to the credit repair organization or to any other person;

(2)

a full and detailed description of the services to be performed by the credit repair organization for the consumer, including—

(A)

all guarantees of performance; and

(B)

an estimate of—

(i)

the date by which the performance of the services (to be performed by the credit repair organization or any other person) will be complete; or

(ii)

the length of the period necessary to perform such services;

(3)

the credit repair organization’s name and principal business address; and

(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.”.

Source credit: (Pub. L. 90–321, title IV, § 406, as added Pub. L. 104–208, div. A, title II, § 2451, Sept. 30, 1996, 110 Stat. 3009–458.)

history & why it existsrecord from the source credit

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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