What Is CROA?
The Credit Repair Organizations Act (CROA), codified at 15 U.S.C. § 1679 et seq., is a federal law enacted in 1996 that regulates credit repair companies operating in the United States. CROA is enforced by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).
The law was created to protect consumers from deceptive practices in the credit repair industry. It establishes clear rules that every credit repair organization must follow — and gives you specific rights you can enforce.
Your Rights Under CROA
Right to Cancel Within 3 Business Days
You have the right to cancel any contract with a credit repair organization within 3 business days of signing, without paying any fees or penalties. This is your “right of rescission” under 15 U.S.C. § 1679e. The credit repair company must provide you with a written cancellation form at the time you sign the contract.
Right to a Written Contract
Before any credit repair services begin, you must receive a written contract that clearly states the terms, conditions, total cost, a detailed description of the services to be performed, the estimated completion date, and your 3-day right to cancel. No services may be performed until you have signed this agreement and the 3-day cancellation period has expired (15 U.S.C. § 1679d).
No Upfront Fees
Credit repair organizations cannot collect any fee or payment before the services are fully performed (15 U.S.C. § 1679b(b)). This means a company cannot charge you before it has actually done the work it promised. If a company demands payment before delivering results, that is a violation of federal law.
No False Claims
Credit repair companies cannot make false or misleading statements about their services (15 U.S.C. § 1679b(a)). This includes claiming they can remove accurate, non-obsolete information from your credit report, guaranteeing a specific credit score increase, or misrepresenting what they can do for you. No one can legally promise a specific outcome.
Right to Sue for Violations
If a credit repair organization violates CROA, you have the right to sue in federal court (15 U.S.C. § 1679g). You may recover actual damages, punitive damages, and attorneys’ fees. Any contract clause that requires you to waive your rights under CROA is void and unenforceable.
Right to Dispute on Your Own
You have the right to dispute inaccurate information in your credit report directly with the credit bureaus without the help of a credit repair organization. You can also obtain a free copy of your credit report from each of the three major bureaus once every 12 months at AnnualCreditReport.com or by calling 1-877-322-8228.
Required CROA Disclosure Statement
Under 15 U.S.C. § 1679c, every credit repair organization must provide consumers with the following statement before any contract is signed:
Consumer Credit File Rights Under State and Federal Law
You have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly. However, neither you nor any “credit repair” company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for 10 years.
You have a right to obtain a copy of your credit report from a credit bureau. You may be charged a reasonable fee. There is no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in your credit report within the preceding 60 days. The credit bureau must provide anyone who takes an adverse action against you with the name, address, and phone number of the credit bureau that provided the report.
You have a right to receive a free copy of your credit report once every 12 months from each of the three major nationwide credit bureaus at www.annualcreditreport.com or by calling 1-877-322-8228.
You have a right to dispute inaccurate items with the credit bureau. If there is any information in your credit report that you believe is inaccurate, you may submit a dispute directly to the credit bureau.
You have a right to cancel your contract with any credit repair organization for any reason within 3 business days from the date you signed it.
Credit repair organizations are prohibited from requiring you to waive your rights under any provision of this law.
How CreditForge Complies With CROA
CreditForge is a credit repair organization as defined by CROA. We are committed to full compliance with all federal and state credit repair laws:
- No upfront fees. We never charge before services are performed. Payment is collected only after work has been completed on your behalf.
- Written service agreement. Every client receives a detailed, CROA-compliant service agreement before any work begins. You can review our Client Service Agreement at any time.
- 3-day cancellation right. You may cancel within 3 business days of signing your agreement for any reason, without penalty. We include a cancellation form with every contract.
- No false promises. We do not guarantee specific credit score increases. Results vary based on individual circumstances. Every dispute we file is based on applicable federal law and your specific account details.
- Full transparency. You have access to your client dashboard where you can track every dispute, see progress updates, and review all correspondence sent on your behalf.
- Required disclosures provided. We provide the full CROA consumer rights statement (shown above) before you sign any agreement.
Filing a Complaint
If you believe any credit repair organization has violated your rights under CROA, you can file a complaint with the following agencies:
Federal Trade Commission (FTC)
The FTC enforces CROA at the federal level.
- Online: reportfraud.ftc.gov
- Phone: 1-877-FTC-HELP (1-877-382-4357)
Consumer Financial Protection Bureau (CFPB)
The CFPB accepts complaints about credit repair companies.
- Online: consumerfinance.gov/complaint
- Phone: 1-855-411-2372
Your State Attorney General
Many states have additional credit repair laws. Contact your state Attorney General’s office to file a complaint under state consumer protection statutes. Find your AG at naag.org/find-my-ag.
Contact CreditForge
If you have questions about your rights or our compliance with CROA, please contact us:
- Email: [email protected]
- Phone: (213) 695-7555