Credit repair organizations are now subject to federal law and disclosure requirements.

Question

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In 1996, the Credit Repair Organizations Act (CROA) was enacted, which requires credit repair organizations to provide consumers with a written contract outlining services to be performed, payment terms, and 3-day right to cancel without charge. The CROA also prohibits credit repair organizations from making false or misleading claims and from charging fees before services are performed.

Credit Repair Organizations Are Now Subject to Federal Law and Disclosure