Amends the Credit Repair Organizations Act to enhance protections against harmful practices in the credit repair industry.
Clarifies the definition of credit repair organizations, excluding legal representation during litigation.
Prohibits credit repair organizations from making untrue or misleading statements, including to consumer protection agencies.
Establishes that credit repair organizations cannot charge fees until they provide documentation proving their services have improved a consumer’s credit report.
Introduces restrictions on submitting multiple disputes for the same information unless specific conditions are met.
Requires credit repair organizations to disclose that their services can be performed by consumers for free.
Mandates that all communications sent on behalf of consumers must be documented and provided to them.
Imposes a requirement for credit repair organizations to be licensed by a state starting January 1, 2026.
Sets forth specific requirements for disputes submitted to information furnishers, including identification of the credit repair organization and the consumer.
Increases civil liability for violations of the Act, allowing for damages of $500 for each violation.
