Yes, every credit repair company is required to have their clients sign a consumer contract per the Credit Repair Organizations Act.
- Sec. 408 stipulates that if your contract does not meet the criteria outlined within the Credit Repair Organizations Act then the contract is consider VOID and is not enforceable in any federal or state court.
- Sec. 409 goes over the particulars of civil liability, punitive damages, attorney’s fees, etc ...
- Sec. 410 states the investigation rights of the Federal Trade Commission and the the state’s authority.
That’s tough ... civil liability, punitive damages, attorney's fees, and administrative enforcement by the Federal Trade Commission. Not anything any company owner wants to hear ...
Some basic guidelines to a compliant contract;
- Duplicate forms of cancellation
- A copy of ‘Consumer Credit File Rights Under State and Federal Law’
- Distinct verbiage in bold close to where the client signs the contract
FACT: Every credit repair company is required keep a copy of that contract on file for two years after the date on which the contract is signed by the client.