CROA Disclosure

The Credit Repair Organizations Act gives consumers important protections. If you are considering credit repair services, you should understand those rights clearly and in plain English.

Your Rights Under Federal Law

The Credit Repair Organizations Act (CROA), 15 U.S.C. § 1679 and following, provides important protections for consumers considering credit repair services. CROA is designed to prevent deceptive practices and to make sure consumers receive clear disclosures before entering into a credit repair agreement.

Important Consumer Notice

You have the right to dispute inaccurate information in your credit report directly with the credit bureaus on your own, without paying a fee to any company. You may also obtain your credit report and monitor your credit activity without purchasing a separate repair service.

Written Contract Requirement

If a consumer purchases credit repair services, CROA generally requires a written contract describing the services to be performed, the total cost, the terms of payment, and the consumer's right to cancel. Consumers should read any proposed agreement carefully before signing.

Right to Cancel

Under CROA, consumers generally have a right to cancel a credit repair contract without charge within three business days after signing. Any company offering covered services should clearly disclose that cancellation right in writing.

Advance Fee Restrictions

CROA restricts when a credit repair organization can charge for services. Consumers should be cautious of any company demanding payment for covered services before the promised services are fully performed.

Misleading Statements Are Prohibited

A credit repair organization cannot lawfully make untrue or misleading statements about credit improvement, consumer rights, or the services being sold. Consumers should be skeptical of broad promises such as “guaranteed deletions,” “instant score increases,” or instructions to create a false identity or misstate information.

Washington Consumers

Consumers in Washington should also review related consumer-protection rights under state law, including the Washington Consumer Protection Act, RCW 19.86. General credit reporting and debt collection issues may also involve federal laws such as the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA), depending on the facts.

Plain-English Summary

If you are considering credit repair help, you should receive clear disclosures, a written contract if covered services are offered, and a cancellation right. You should also remember that you retain the power to review your reports and dispute inaccurate information on your own.