What You Should Know about the Credit Repair Organizations Act

Summary

This practice note is intended to explore the Credit Repair Organizations Act (CROA) by providing an overview of the law, its purpose, consumer protections, required consumer disclosures, prohibitions, the right to credit repair, and recent enforcement actions from federal banking agencies. The CROA, enacted in 1996 as Title IV of the Consumer Credit Protection Act (15 U.S.C. § 1679), prohibits persons offering credit repair services from making false and misleading representations and requires specific affirmative disclosures with the intent of providing transparency to consumers.