What are the laws governing credit repair?

In California, the credit repair law is established under the Credit Repair Organizations Act (CROA). This law outlines the rights of consumers and the restrictions that credit repair organizations must follow. Under the CROA, credit repair organizations cannot make false or misleading statements to consumers, cannot require up-front payment from the consumer, nor can they charge an advance fee for services until the services have been performed. The law also specifies that consumers have the right to cancel any agreement with a credit repair organization within three business days, and receive a refund within ten days of cancellation. Another important aspect of the CROA is that credit repair organizations must provide consumers with a written disclosure that includes details about the services offered and their cost, a statement of their right to cancel, and their right to dispute inaccurate information in their credit report. The CROA also sets forth restrictions and guidelines on the use of credit repair contracts. These contracts must outline the services to be provided, the terms of payment, the total cost, the consumer’s right to cancel, the dispute process, and any guarantees or promises of results. Finally, the CROA provides consumers with the right to sue a credit repair organization if they violate any of these laws. If a consumer is successful in their lawsuit, they may be entitled to damages, including the costs of the services, any money paid to the credit repair organization, and attorney fees.

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What are the laws governing credit repair?

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