Credit Repair Laws by State

How aware are you of the different credit repair laws in the US? Do you know of the variations in credit repair laws by state? Before hiring a professional to help you improve your credit rating, you need to know your rights and the rules credit repair firms must follow. To make it easy for you to view all relevant information in one place, we have put together this article covering state-wise legislation on credit repair services. 

Federal Credit Repair Laws

Two federal laws govern credit repair throughout the US. These are the Fair Credit Reporting Act (FCRA), passed in 1970, and the Credit Repair Organizations Act (CROA) from 1996. All credit repair organizations stateside have to adhere to these two federal laws and follow the credit repair laws by state governments.

The FCRA covers aspects of consumer credit reports, including who can view them, what can be included, and consumers’ right to accuracy. The CROA, on the other hand, covers aspects related to credit repair companies. These include mandatory disclosures, forbidden activities, contracts, and the right to claim damages. 

Most US states also have their own regulations on credit repair, and a firm providing credit repair within such states (or territories) must adhere to both federal and state laws. So, what are the usual variations across credit repair laws by state? What additional aspects do these state laws cover? 

State Credit Repair Laws

The state credit repair laws incorporate rules on several critical factors. For example, these laws have additional specifications regarding the kind of disclosures firms must make to their potential customers before a contract is signed. There could be specifications related to the agreement itself. Many states require firms to register with government authorities or obtain a license. Some ask firms to have a state-licensed attorney on the team.

Then, the value of the obtained surety bonds can vary significantly across the different credit repair laws by state. These bonds help cover damages when the firm harms a consumer. Another important specification is the time consumers are given to cancel the contract after signing or the time within which they are entitled to a full refund. There could also be rules regarding advertising or claims made during sales calls.

Some of these aspects of the state-specific credit repair laws are summarized below. We provided more detailed descriptions of the credit repair laws by state (and for the territories of Puerto Rico and the US Virgin Islands) below the table. The descriptions also include information on the governing authority in each state for credit repair. In cases where the authority is not specified, the Attorney General of the state is the person to contact for issues related to credit repair.

Learn more: Credit Repair Statistics

Credit Repair Laws by State

Alabama Credit Repair Laws

Alabama has not passed any state-specific laws for credit repair. Thus, the only laws governing credit repair that need to be followed by providers and consumers in the state are the two federal laws. 

Alaska Credit Repair Laws

Alaska is another state that has not passed any state-specific laws for credit repair. So, as with Alabama, people and businesses in the Last Frontier only need to follow federal-level regulations. 

Arizona Credit Repair Laws

The Arizona Credit Repair Organizations Act governs credit repair in Arizona. The state authority for credit repair is the Arizona Corporation Commission in Phoenix.

Credit repair organizations operating in Arizona must obtain a surety bond of $25,000. However, firms offering credit repair services are not required to register with any state authority.

The credit repair laws in Arizona specify strict contract requirements. The laws also mention specific contract disclosures. Moreover, credit repair organizations must to allow consumers to cancel the contract at any time within three business days from the contract’s date. Firms must also allow consumers a full refund within 15 days of the contract signing.

Arkansas Credit Repair Laws

The state laws governing credit repair in Arkansas fall under the Credit Services Organization Act of 2017. 

All credit repair firms operating in Arkansas are required to obtain a surety bond of $10,000. These firms do not have to register with any authority, though.

Regarding contract-related regulations, credit repair laws in Arkansas do not have a term requirement. However, all credit repair firms must allow consumers to cancel the contract within five business days of signing and must allow a full refund within ten days of signing.

California Credit Repair Laws

Credit repair in California is governed by the Credit Services Act of 1984. The state authority for credit repair is the Department of Justice, Attorney General’s Office. In 2020, California enacted an additional law called the Assembly Bill 1864 to oversee financial services in the state. Some clauses of this law also concern credit repair services. 

Credit repair laws in California require all firms providing credit repair in the state to obtain a bond of $100,000. Firms must also register with the Attorney General’s Office.

The specific contract and disclosure requirements for credit repair include prohibiting contract terms exceeding six months. Firms must allow cancellation of contracts within five business days of signing and a full refund within 15 days of signing.  

Colorado Credit Repair Laws

The governing law for credit repair in the Centennial State is the Colorado Credit Services Organization Act. The authority for credit repair in the state is the Colorado Department of Law, Consumer Credit Unit.

Firms offering credit repair services in the state are not required to obtain surety bonds or register with any authority, according to credit repair laws in Colorado. There are no term requirements in the contract either. However, there are other specific contract and disclosure requirements. For instance, credit repair firms must allow consumers to cancel the contract within five business days of signing and a full refund within ten days of signing.  

Connecticut Credit Repair Laws

Connecticut’s laws related to credit repair are part of a more comprehensive set of statutes on lending. Credit repair firms in the state do not have any bond or registration requirements.

While some specifications regarding the contract and disclosures exist, there are no rules regarding the contract term or cancellation and refund periods. 

Delaware Credit Repair Laws

The state authority for credit repair is the Division of Corporations, Delaware Department of State. Credit repair firms in Delaware must obtain a surety bond of $15,000 and register with the Licensing Division, Delaware Department of State.

The specific contract and disclosure requirements under the credit repair laws in Delaware are covered by Del. Code. §2407. The state laws prohibit a contract term longer than 180 days. Plus, contract cancellation within three business days of the signing date and a full refund within ten days of the signing date must be allowed to consumers. 

Florida Credit Repair Laws

In the Sunshine State, credit repair regulations fall under statutes from 2019. The state authority for credit repair is the Florida Department of State. 

Credit repair organizations in Florida must obtain a surety bond worth $10,000. However, they don’t need to register with any authority.

The credit repair laws in Florida do not have a term specification. The state allows consumers using credit repair services to cancel the contract at any time within five business days of signing. Firms must enable consumers to receive a full refund within ten days of signing. 

Georgia Credit Repair Laws

According to state laws, Georgia is the only US state where credit repair through a third-party provider is illegal. Rules in the Peach State hold that anyone committing the offense of operating a credit repair services organization is guilty of a misdemeanor. 

Hawaii Credit Repair Laws

Similarly to Alabama and Alaska, Hawaii has not passed any state-specific laws for credit repair. Thus, the only credit repair laws that need to be followed by providers and consumers in Aloha State are the two federal laws. 

Idaho Credit Repair Laws

The Idaho Collection Agency Act covers the state’s statutes related to credit repair. The authority for credit repair is the Idaho Department of Finance.

Firms providing credit repair services in the state must obtain a surety bond of $15,000 and register with the Consumer Finance Bureau, Idaho Department of Finance. Moreover, unlike most other states, Idaho laws require firms to obtain a license to offer credit repair services.

On the other hand, there are no state-specific contract or disclosure requirements. So, in these matters, credit repair services in Idaho are governed by federal laws only.

Illinois Credit Repair Laws

The Credit Services Organizations Act covers credit repair in Illinois. The relevant authority in the state is the Secretary of State.

Firms must obtain a bond of $100,000. They must also register with the Index Department, Illinois Secretary of State. There is no restriction on the contract terms in Illinois, but consumers can cancel the contract at any time within three days of signing it and are entitled to a full refund within ten days from the signing date.

Indiana Credit Repair Laws

In Indiana, credit repair laws fall under Chapter 15 (Credit Services Organizations) of Article 5 (Consumer Sales) of Title 24 (Trade Regulation). The authority for credit repair is the state’s Attorney General’s office. While firms are required to get a surety bond of $25,000, they don’t need to register. 

There is no contract term requirement, but consumers are entitled to cancellation within three business days and a full refund within ten days from the signing of the contract.

Iowa Credit Repair Laws

Credit repair in Iowa is governed by Chapter 538A, Credit Services Organizations, of the Iowa Code. The authority for credit repair is the Iowa Secretary of State.

Credit repair firms in the state must obtain a surety bond of $10,000 and register with the Credit Services Organization Registration Department. 

There is no limit on contract terms. Firms, however, are required to allow consumers to cancel the contract within three business days of signing and a full refund within 10 days of signing.

Kansas Credit Repair Laws

The state law for credit repair in Kansas is known as the Kansas Credit Services Organization Act. The authority responsible for credit repair in the state is the Office of the State Bank Commissioner in Topeka.

Credit repair firms operating in The Sunflower State must obtain a surety bond of $25,000. Credit repair laws in Kansas also require them to register with the state’s Office of The Bank Commissioner, Consumer, and Mortgage Lending Division.

There are no term or cancellation requirements; however, credit repair organizations in Kansas should allow consumers a full refund within ten days from the contract’s date.

Kentucky Credit Repair Laws

Kentucky has not passed any state-specific laws for credit repair. That means that consumers who want to use such services and the respective companies providing them need to abide by the existing laws on a federal level. 

Louisiana Credit Repair Laws

Besides the federal laws, credit repair firms operating in Louisiana must abide by the Credit Repair Services Organizations Act. The authority for credit repair in the state is the Louisiana Office of the Attorney General.

The credit repair laws in Louisiana require firms to obtain a surety bond of $100,000 and register with the Attorney General’s office. 

There are also additional contract and disclosure requirements. These include an upper limit on contract terms of 180 days and allowing consumers to cancel the contract within five business days and a full refund within ten days of the contract signing.

Maine Credit Repair Laws

The statutes governing credit repair in Maine fall under the Maine Consumer Credit Code – Loan Brokers. The Bureau of Consumer Credit Protection is the governing authority in the state.

Firms providing such services in the state must have a surety bond of $25,000. However, no formal registration is required. The statutes have several contract and disclosure requirements, but there are no specific requirements regarding contract terms, cancellation, or refund.

Maryland Credit Repair Laws

The Maryland Credit Services Businesses Act governs credit repair in Maryland. The state authority for credit repair is Licensing and Regulations, Department of Labor. 

Firms providing credit repair in the state must obtain a surety bond of $50,000. Local laws also cover detailed regulations on the licensing of credit repair firms, including a separate branch license for each branch location of a firm.

No contract term limits are specified, but firms must allow consumers cancellation within three business days of signing the contract and a full refund within ten days of the signing.

Massachusetts Credit Repair Laws

The governing authority in Massachusetts is the State Attorney General. Credit repair firms operating in Massachusetts must obtain a surety bond of $10,000. While the state doesn’t require firms to register, it requires them to let consumers cancel the contract within three business days of signing it and receive a full refund within ten days. There are no term-related specifications.

Michigan Credit Repair Laws

The law governing credit repair in Michigan is the Credit Services Protection Act. The Attorney General’s Office in Lansing is the state authority for issues related to credit repair.

Michigan does not have bond or registration requirements for credit repair organizations, nor are there any specific disclosure-related requirements or conditions for cancellation and refund. Contract terms exceeding 90 days, however, are prohibited. 

Minnesota Credit Repair Laws

The Gopher State’s authority for credit repair is the Minnesota Department of Commerce.

Firms must obtain a surety bond of $10,000 and register with the Division of Financial Institutions, Department of Commerce. No term limits are specified, but firms must allow consumers to cancel the contract within five business days and ask for a full refund within ten days of signing.

Mississippi Credit Repair Laws

The laws on credit repair in Mississippi fall under the Mississippi Debt Management Services Act. The state authority for credit repair is the Department of Banking and Consumer Finance. Firms operating in the state are required to obtain a surety bond of $50,000. Companies must also register with the Department of Banking and Consumer Finance and obtain a license to provide credit repair services.

There are no specific requirements related to contracts or disclosures.

Missouri Credit Repair Laws

The state authority for credit repair is the Division of Finance.

Missouri requires credit repair firms to obtain a surety bond of $10,000 and register with the Missouri Department of Insurance, Financial Institutions, and Professional Regulation. There is no term limit, but consumers can cancel the services within three business days of signing the contract. Firms must also allow consumers a full refund within ten days of signing.

Montana Credit Repair Laws

Montana has not passed any state-specific laws for credit repair. Thus, the only credit repair laws in Big Sky Country that need to be followed by providers and consumers are the two federal laws. 

Nebraska Credit Repair Laws

Credit repair providers and consumers in Nebraska have to adhere to the Credit Services Organization Act, in addition to the two laws on a federal level. The Nebraska Secretary of State, meanwhile, is the local authority for credit repair. 

Credit repair laws in Nebraska require firms to obtain a surety bond of $100,000. Firms must also register with the Licensing Division, Nebraska Secretary of State.

Nebraska limits the terms of credit repair contracts to 180 days. Firms must allow consumers to cancel the contract within three business days of signing and allow consumers a full refund within ten days of signing.   

Nevada Credit Repair Laws

The Nevada Department of Business and Industry governs credit repair services in Silver State. Firms providing credit repair services in Nevada must obtain a surety bond of $100,000 and register with the Division of Mortgage Lending, State of Nevada Department of Business and Industry. Credit repair services contracts have no term limits. Still, they must allow contract cancellation within five business days of signing, with consumers entitled to a full refund within ten days of signing.

New Hampshire Credit Repair Laws

The Credit Services Regulation Act is the law governing credit repair in New Hampshire. The state authority for credit repair is the Secretary of State. Firms are not required to register to provide credit repair services but need to have a bond of $25,000.

Credit repair services must allow consumers to cancel the contract and get a full refund within five business days of signing of the contract. There is no term-related clause in the statutes. 

New Jersey Credit Repair Laws

New Jersey has not passed any state-specific laws for credit repair. As a result, the only credit repair laws companies and individuals in New Jersey need to follow are the ones on a federal level. 

New Mexico Credit Repair Laws

Like New Jersey, New Mexico has not passed any state-specific laws for credit repair, nor does it have any dedicated authority. Therefore, the only applicable laws governing the credit repair industry and consumers are the federal ones. 

New York Credit Repair Laws

The state authority for credit repair is the New York Attorney General. Local regulations don’t require firms to obtain a surety bond or register with any authority, and there is no upper limit on contract terms. Firms, however, must allow consumers to cancel any time within three business days of the signing of the contract. 

North Carolina Credit Repair Laws

The Credit Repair Services Act governs credit repair in North Carolina. No state authority is specified, so consumers should check the North Carolina Attorney General’s office. 

Firms offering such services need to obtain a surety bond of $10,000 but do not need to register formally with any authority, according to credit repair laws in North Carolina. The requirements related to the contract and disclosures point to no term limit on credit repair contracts. That said, firms must allow consumers to cancel the contract within three business days of the signing. A full refund should be allowed within ten days of the signing.

North Dakota Credit Repair Laws

North Dakota has not passed any state-specific laws for credit repair. So, it joins the list of states whose residents and credit repair businesses need to follow credit repair laws operating on the federal level. 

Ohio Credit Repair Laws

The Ohio Credit Services Organization Act governs credit repair services in the state. The Division of Financial Institutions is the governing authority.

The bond requirement for credit repair firms in Ohio is $50,000. Firms must also register with the Ohio Department of Commerce, Division of Financial Institutions, before offering credit repair services in the state.

Contract terms cannot exceed 60 days, and firms must allow consumers to cancel the contract within three business days post-signing.

Oklahoma Credit Repair Laws

The Credit Services Organization Act governs credit repair in Oklahoma. The governing authority in the state for credit repair services is the Oklahoma Department of Consumer Credit. 

Local regulations specify a surety bond of $10,000 for firms. Firms must also register with and obtain a license for credit repair from the Department of Consumer Credit.

There is no term requirement, but consumers can cancel the contract within five business days of signing it and are entitled to a full refund within ten days of signing.

Oregon Credit Repair Laws

In Oregon, the statutes related to credit repair services are included under the subcategory Debt Management Service Providers of the Oregon Revised Statutes. The authority for credit repair in the state is the Division of Financial Regulation, Finance, and Corporate Securities.

Credit repair laws in Oregon require firms to obtain a surety bond of $10,000. Funds must also register with the Division of Financial Regulation.

The specific requirements related to the contract and disclosures include a requirement for firms to allow consumers to cancel the contract within three business days of signing the contract. 

Pennsylvania Credit Repair Laws

The law governing credit repair in Pennsylvania is the Credit Services Act. The state authority on credit repair is the Pennsylvania State Department. 

Unlike other states, Pennsylvania has variable amounts specified for the surety bond. The bond must equal 5% of the fees charged by the credit repair firm to its consumers. However, the bond amount cannot be less than $5,000 or more than $25,000. The amount is adjusted each year. There are no registration or licensing requirements for firms under the credit repair laws in Pennsylvania.

Pennsylvania’s credit repair laws have several specifications regarding the contract and disclosures. While there is no term limit on contracts, firms must allow consumers to cancel the contract within five business days of signing the contract and a full refund within 15 days of signing.

Puerto Rico Credit Repair Laws

The territory’s governing authority for credit repair is the Office of the Commissioner of Financial Institutions. Local laws specify a bond requirement of $10,000. Firms must also register with and obtain a license from the Office of the Commissioner of Financial Institutions, Departamento de Hacienda.

Firms must allow consumers to cancel the contract within seven business days of signing and allow a full refund within 15 days of signing the contract. There is no term limit on contracts.

Rhode Island Credit Repair Laws

Rhode Island has not passed any state-specific laws for credit repair. Thus, the only laws governing credit repair in the state of Rhode Island that need to be followed by providers and consumers are the two federal laws. 

South Carolina Credit Repair Laws

The statutes on Consumer Credit Counseling are the governing laws for credit repair services in South Carolina. The state authority for credit repair is the South Carolina Department of Consumer Affairs.

Credit repair laws in South Carolina require firms to obtain a surety bond of $25,000. Firms must also register with and obtain a license from the Department of Consumer Affairs. 

Credit repair contracts cannot have terms exceeding five years. Firms must allow consumers cancellation and a full refund within ten business days of signing the contract.

South Dakota Credit Repair Laws

South Dakota is yet another state that has not passed any state-specific laws for credit repair. As a result, the only regulations to be followed by providers and consumers are the two laws operating on a federal level. 

Tennessee Credit Repair Laws

The law governing credit repair in Tennessee is called the Tennessee Credit Services Businesses Act. The Tennessee Department of Commerce and Insurance is the authority responsible for all issues related to credit repair in the state.

The bond amount required for firms in Tennessee is $100,000. There is no term limit on credit repair contracts in the state, but firms must allow consumers to cancel the contract within five business days of signing and a full refund within ten days. There are no other licensing or registration requirements. 

Texas Credit Repair Laws

Credit repair in Texas is governed by the statutes under Chapter 393 (Credit Services Organizations) of the Texas Finance Code. The state’s governing authority for credit repair is the Texas Secretary of State. To operate a credit repair business in The Lone Star State, a company must have a bond amount of $10,000 and register with the Texas Secretary of State.

Credit repair contracts cannot exceed 180 days. Firms must allow contract cancellation within three business days of signing and a full refund within ten days.

US Virgin Islands Credit Repair Laws

The statutes governing credit repair in the US Virgin Islands fall under Virgin Islands Uniform Debt Services Management. The governing authority for credit repair in the territory is the Lieutenant Governor.

US Virgin Islands requires credit repair firms to obtain a surety bond of $50,000 and register with the Lieutenant’s Governor’s office. There are no term limits or refund requirements, but consumers can cancel the contract at any time within three business days of the signing.

Utah Credit Repair Laws

The Credit Services Organization Act governs credit repair services in Utah. The state authority for credit repair is the Utah Department of Commerce. Utah requires credit repair firms to obtain a surety bond of $100,000 and register with the Division of Consumer Protection, Utah Department of Commerce.

There is no term limit, but consumers can cancel the contract within five business days of signing. Firms must also allow consumers a full refund within ten days of signing.

Vermont Credit Repair Laws

Vermont has not passed any state-specific laws for credit repair. This way, the Green Mountain State has joined the league of states where such services are governed by the two existing laws on a US-wide level.

Virginia Credit Repair Laws

In Virginia, the regulations related to credit repair are included under the Virginia Credit Services Businesses Act. The state authority for credit repair is the Commissioner of Agriculture and Consumer Services.

Firms must obtain a surety bond of $50,000 and register with the Virginia Department of Agriculture and Consumer Services. There is no upper limit on contract terms. However, firms must allow consumers to cancel any time within three business days of the signing of the contract and allow a full refund within 10 days.

Washington Credit Repair Laws

Credit repair providers and consumers in Washington must to adhere to the Credit Services Organization Act. The state authority for credit repair is the Washington Secretary of State. 

Credit repair firms operating in The Evergreen State need to obtain a surety bond of $10,000, as provisioned in credit repair laws in Washington. However, no licensing or registration requirements are specified. Washington does not identify any term limits for credit repair contracts either. Firms must allow consumers to cancel the contract within five business days of signing and allow consumers a full refund within ten days of signing.

West Virginia Credit Repair Laws

The West Virginia Consumer Credit and Protection Act governs all matters related to credit repair in the state. The authority for credit repair is the West Virginia Secretary of State.

Firms must obtain a surety bond of $15,000 and register with the Business & Licensing Division in the Secretary of State’s office.

There is e a 180-day term limit on contracts. Plus, firms must allow consumers to cancel the contract within three business days of signing and a full refund within ten days of signing.

Wisconsin Credit Repair Laws

Wisconsin has specific credit repair laws under the Credit Services Organization category. The state authority for credit repair is the Wisconsin Department of Financial Institutions. 

Firms must obtain a surety bond of $25,000 before offering credit repair services in the state. They must also register with the Bureau of Consumer Affairs, Wisconsin Department of Financial Institutions. There are no term limits, but firms must allow consumers to cancel within five business days of signing the contract and a full refund within 15 days.

Wyoming Credit Repair Laws

Wyoming has not passed any state-specific laws for credit repair, rounding up the list of states where the only applicable laws are those on a federal level. 

Conclusion

Your credit standing impacts several aspects of your life, meaning the process of improving by hiring a credit repair professional needs to be foolproof. Our comprehensive coverage of credit repair laws by state aims to ensure you are well-informed through every step of the process, whether hiring the right service provider or simply being aware of your rights.  

Learn more: Credit Repair Cost