TITLE 15–COMMERCE AND TRADE
CHAPTER 41–CONSUMER CREDIT PROTECTION
Sub Chapter II-A –Credit Repair Organizations
(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,\1\ credit standing, or credit capacity to--
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\1\ So in original. Probably should be ``creditworthiness,''.
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(A) any consumer reporting agency (as defined in section
1681a(f) of this title); or
(B) any person--
(i) who has extended credit to the consumer; or
(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--
(A) any consumer reporting agency;
(B) any person--
(i) who has extended credit to the consumer; or
(ii) to whom the consumer has applied or is applying for
an extension of credit;
(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.
(Pub. L. 90-321, title IV, Sec. 404, as added Pub. L. 104-208, div. A,
title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-456.)
Prior Provisions
For a prior section 404 of Pub. L. 90-321, see note set out under
section 1679 of this title.
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