What is the Credit Repair Organizations Act?

The Credit Repair Organizations Act is a law that applies to credit repair services in the state of Texas. This law is designed to protect Texas consumers from deceptive and unfair practices of credit repair companies. Under the Credit Repair Organizations Act, credit repair organizations must provide prospective customers with a written disclosure statement before entering into a contract. The statement must include a description of the services being offered, the total cost of the services, any guarantees, the consumer’s right to cancel the contract within three business days, and a notice that the company cannot legally remove information from a consumer’s credit report. The Act also requires credit repair organizations to abide by certain advertising and sales practices, such as providing accurate information about their services and not making misleading claims or promises about their services. Credit repair organizations must also obtain a surety bond, which guarantees customer refunds in the event of non-performance or failure to provide promised services. Finally, the Act grants the Texas Attorney General the authority to bring civil cases against credit repair organizations that fail to follow the law.

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What is the Credit Repair Organizations Act?

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