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

Sec. 1679c. Disclosures
(a) Disclosure required

    Any credit repair organization shall provide any consumer with the 
following written statement before any contract or agreement between the 
consumer and the credit repair organization is executed:

   ``Consumer Credit File Rights Under State and Federal Law

    ``You have a right to dispute inaccurate information in your credit 
report by contacting the credit bureau directly. However, neither you 
nor any `credit repair' company or credit repair organization has the 
right to have accurate, current, and verifiable information removed from 
your credit report. The credit bureau must remove accurate, negative 
information from your report only if it is over 7 years old. Bankruptcy 
information can be reported for 10 years.
    ``You have a right to obtain a copy of your credit report from a 
credit bureau. You may be charged a reasonable fee. There is no fee, 
however, if you have been turned down for credit, employment, insurance, 
or a rental dwelling because of information in your credit report within 
the preceding 60 days. The credit bureau must provide someone to help 
you interpret the information in your credit file. You are entitled to 
receive a free copy of your credit report if you are unemployed and 
intend to apply for employment in the next 60 days, if you are a 
recipient of public welfare assistance, or if you have reason to believe 
that there is inaccurate information in your credit report due to fraud.
    ``You have a right to sue a credit repair organization that violates 
the Credit Repair Organization Act. This law prohibits deceptive 
practices by credit repair organizations.
    ``You have the right to cancel your contract with any credit repair 
organization for any reason within 3 business days from the date you 
signed it.
    ``Credit bureaus are required to follow reasonable procedures to 
ensure that the information they report is accurate. However, mistakes 
may occur.
    ``You may, on your own, notify a credit bureau in writing that you 
dispute the accuracy of information in your credit file. The credit 
bureau must then reinvestigate and modify or remove inaccurate or 
incomplete information. The credit bureau may not charge any fee for 
this service. Any pertinent information and copies of all documents you 
have concerning an error should be given to the credit bureau.
    ``If the credit bureau's reinvestigation does not resolve the 
dispute to your satisfaction, you may send a brief statement to the 
credit bureau, to be kept in your file, explaining why you think the 
record is inaccurate. The credit bureau must include a summary of your 
statement about disputed information with any report it issues about 
you.
    ``The Federal Trade Commission regulates credit bureaus and credit 
repair organizations. For more information contact:


(b) Separate statement requirement

    The written statement required under this section shall be provided 
as a document which is separate from any written contract or other 
agreement between the credit repair organization and the consumer or any 
other written material provided to the consumer.

(c) Retention of compliance records

 (1) In general

        The credit repair organization shall maintain a copy of the 
    statement signed by the consumer acknowledging receipt of the 
    statement.

     (2) Maintenance for 2 years

        The copy of any consumer's statement shall be maintained in the 
    organization's files for 2 years after the date on which the 
    statement is signed by the consumer.

(Pub. L. 90-321, title IV, Sec. 405, as added Pub. L. 104-208, div. A, 
title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-457.)

 References in Text

    The Credit Repair Organization Act, referred to in subsec. (a), 
probably means the Credit Repair Organizations Act, Pub. L. 90-321, 
title IV, as added Pub. L. 104-208, div. A, title II, Sec. 2451, Sept. 
30, 1996, 110 Stat. 3009-454, which is classified generally to this 
subchapter. For complete classification of this Act to the Code, see 
Short Title note set out under section 1601 of this title and Tables.

 Prior Provisions

    For a prior section 405 of Pub. L. 90-321, see note set out under 
section 1679 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1679e of this title.
							
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