What is the Credit Repair Organizations Act?

The Credit Repair Organizations Act is a federal statute that was put in place to protect consumers from fraudulent and deceptive practices when it comes to credit repair services. The Act applies to both federally-regulated and state-regulated credit repair organizations in Kansas. Under the Act, credit repair organizations are prohibited from misrepresenting their services and from charging up-front fees before any services are provided. The Act also requires organizations to spell out all legal remedies available to consumers, and to provide written contracts that detail the services to be performed. Furthermore, the Act requires credit repair organizations to provide consumers with a disclosure statement advising them of their right to cancel their contract for any reason within 3 business days. The Act also requires full disclosure of any fees that may be charged, as well as a statement explaining that the consumer has a right to dispute incorrect information in their credit report and that they may do this for free. Finally, the Act requires any credit repair organization that provides advice or services to consumers to be registered with the Kansas Secretary of State and to meet certain standards.

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What is the Credit Repair Organizations Act?

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