United States Code
TITLE 15 - COMMERCE AND TRADE
CHAPTER 41 - CONSUMER CREDIT PROTECTION
SUBCHAPTER II-A - CREDIT REPAIR ORGANIZATIONS

Section 1679. Findings and purposes

    (a) Findings
      The Congress makes the following findings:
        (1) Consumers have a vital interest in establishing and
      maintaining their credit worthiness (FOOTNOTE 1) and credit
      standing in order to obtain and use credit.  As a result,
      consumers who have experienced credit problems may seek
      assistance from credit repair organizations which offer to
      improve the credit standing of such consumers.
       (FOOTNOTE 1) So in original.  Probably should be
    ''creditworthiness''.

        (2) Certain advertising and business practices of some
      companies engaged in the business of credit repair services have
      worked a financial hardship upon consumers, particularly those of
      limited economic means and who are inexperienced in credit
      matters.

    (b) Purposes
      The purposes of this subchapter are -

        (1) to ensure that prospective buyers of the services of credit
      repair organizations are provided with the information necessary
      to make an informed decision regarding the purchase of such
      services; and

        (2) to protect the public from unfair or deceptive advertising
      and business practices by credit repair organizations.


Section 1679a. Definitions 

      For purposes of this subchapter, the following definitions apply:
      (1) Consumer
        The term ''consumer'' means an individual.

      (2) Consumer credit transaction
        The term ''consumer credit transaction'' means any transaction
      in which credit is offered or extended to an individual for
      personal, family, or household purposes.

      (3) Credit repair organization
        The term ''credit repair organization'' -

          (A) means any person who uses any instrumentality of
        interstate commerce or the mails to sell, provide, or perform
        (or represent that such person can or will sell, provide, or
        perform) any service, in return for the payment of money or
        other valuable consideration, for the express or implied
        purpose of -

            (i) improving any consumer's credit record, credit history,
          or credit rating; or

            (ii) providing advice or assistance to any consumer with
          regard to any activity or service described in clause (i);
          and

          (B) does not include -
            (i) any nonprofit organization which is exempt from
          taxation under section 501(c)(3) of title 26;

            (ii) any creditor (as defined in section 1602 of this
          title), with respect to any consumer, to the extent the
          creditor is assisting the consumer to restructure any debt
          owed by the consumer to the creditor; or

            (iii) any depository institution (as that term is defined
          in section 1813 of title 12) or any Federal or State credit
          union (as those terms are defined in section 1752 of title
          12), or any affiliate or subsidiary of such a depository
          institution or credit union.

      (4) Credit
        The term ''credit'' has the meaning given to such term in
      section 1602(e) of this title.

Section 1679b. Prohibited practices 
                    

    (a) In general
      No person may -
        (1) make any statement, or counsel or advise any consumer to
      make any statement, which is untrue or misleading (or which, upon
      the exercise of reasonable care, should be known by the credit
      repair organization, officer, employee, agent, or other person to
      be untrue or misleading) with respect to any consumer's credit
      worthiness, (FOOTNOTE 1) credit standing, or credit capacity to -
       (FOOTNOTE 1) So in original.  Probably should be
    ''creditworthiness,''.

          (A) any consumer reporting agency (as defined in section
        1681a(f) of this title); or

          (B) any person -
            (i) who has extended credit to the consumer; or
            (ii) to whom the consumer has applied or is applying for an
          extension of credit;

        (2) make any statement, or counsel or advise any consumer to
      make any statement, the intended effect of which is to alter the
      consumer's identification to prevent the display of the
      consumer's credit record, history, or rating for the purpose of
      concealing adverse information that is accurate and not obsolete
      to -
          (A) any consumer reporting agency;

          (B) any person -
            (i) who has extended credit to the consumer; or
            (ii) to whom the consumer has applied or is applying for an
          extension of credit;

        (3) make or use any untrue or misleading representation of the
      services of the credit repair organization; or

        (4) engage, directly or indirectly, in any act, practice, or
      course of business that constitutes or results in the commission
      of, or an attempt to commit, a fraud or deception on any person
      in connection with the offer or sale of the services of the
      credit repair organization.

    (b) Payment in advance
      No credit repair organization may charge or receive any money or
    other valuable consideration for the performance of any service
    which the credit repair organization has agreed to perform for any
    consumer before such service is fully performed.