The Center For Debt Management
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TITLE 15–COMMERCE AND TRADE

CHAPTER 41–CONSUMER CREDIT PROTECTION

Sub Chapter&nbspII-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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