Credit-repair fees, contracts and cancellation rights

The payment promise matters as much as the marketing promise.

Federal rules set boundaries

The FTC says the Credit Repair Organizations Act requires specific disclosures and written contracts for covered organizations, limits advance payment and provides cancellation rights.

Credit-repair sales covered by the Telemarketing Sales Rule may face additional payment restrictions. State requirements can add more rules.

Confirm the exact arrangement

Before publishing a price or accepting payment, the business should have its service agreement and payment timing reviewed for every state it intends to serve.

Important: This article is general education, not legal advice, a credit or lending decision, an offer of financing or a promise of any result. Provider terms and state requirements may differ.