What Credit Repair Laws Should I Know About By State?

You master federal credit repair rules via the Credit Repair Organizations Act (CROA) and Fair Credit Reporting Act (FCRA). These nationwide laws protect you from scams and inaccuracies. They override weaker state rules but yield to stronger ones.

1. Under CROA, credit repair companies must give you a three-day cancellation right after signing. You get full refunds if you cancel within three business days. They cannot charge upfront fees or guarantee results.
2. FCRA lets you dispute false info on your reports for free. Bureaus must investigate within 30 days. You access one free report per bureau annually, or weekly now at AnnualCreditReport.com.
3. FCRA requires credit repair firms to explain your rights in writing before contracts. You avoid illegal practices like disputing accurate info.

You search your state's official legislature website for credit repair statutes. Not every state has a dedicated credit repair law like federal CROA. Many states regulate credit repair under broader consumer protection or unfair trade practices laws. California offers the Credit Services Act. Texas uses Deceptive Trade Practices rules.

• Visit your state legislature's site (search "[state] legislature").
• Enter terms like "credit repair," "credit services organization," or "credit repair act."
• Check your attorney general's consumer protection page for summaries.
• Review statutes on unfair/deceptive practices or debt collection.

You start with federal baselines like the Credit Repair Organizations Act (CROA), which mandates a 3-business-day cancellation right and bans advance fees. Federal rules set minimum protections nationwide.

You choose state laws when they exceed federal ones. California's CCRAA gives you a 5-business-day cooling-off period, topping CROA's 3 days. Approximately 11 states (AR, GA, HI, KS, LA, MD, NM, OK, RI, WV, WY) outright ban credit repair services, offering you complete prohibition beyond federal limits. Always verify your state's statutes for the strongest shield.

Know your state's limits on credit repair fees

Federal law under the Credit Repair Organizations Act bans you from paying credit repair fees before services are performed. Many states strengthen this with their own advance fee bans. You find your state's exact limits in its credit repair statutes.

• California, Florida, and Tennessee prohibit any fee before services, matching federal rules but enforced locally.
• Texas uniquely requires prepaid fees go into a trust account until services complete.
• Other states may cap fees as "reasonable" or tie them to licensing rules.

You check your state's attorney general site or statutes for precise fee limits, as they vary.

Your state's debt statute of limitations sets the deadline for creditors to sue you on old debts. You find it in your state civil code, often 3-10 years depending on debt type like written contracts or oral agreements (verify on official legislature sites). It runs from last payment or acknowledgment.

Federal FCRA allows debt reporting for 7 years from delinquency, even past state SOL. You use state SOL knowledge to dispute time-barred debts during credit repair, as collectors cannot sue but may still contact you.

You start with federal baselines under the Consumer Credit Protection Act. It caps non-support garnishment at 25% of your disposable earnings or the amount exceeding 30 times the federal minimum wage, whichever is less. Child support garnishment reaches up to 50% or more in some cases.

You check your state's statutes for stricter limits or higher protections; many cap garnishment below 25% and exempt more income, like Social Security or unemployment benefits. Search your state legislature's website or attorney general's consumer protection page for "wage garnishment exemptions [your state]."

You distinguish the Fair Debt Collection Practices Act, a federal law regulating collector behavior without setting garnishment caps. State laws govern exemptions, so verify yours apply more protection than federal minimums.

You challenge harassing debt collectors with your state's anti-harassment laws, which often strengthen federal FDCPA protections. The FDCPA prohibits abusive tactics nationwide. States add layers, like California's Rosenthal Act, which regulates debt collector licensing and practices (harassment bans appear in other California statutes and FDCPA). Check your state's statutes for extras:

• Stronger bans on calls or threats.
• Potential actual damages or injunctions.
• Fee recovery, where proven under FDCPA or specific state rules (varies; not all states allow statutory fees).

You research via state attorney general's site or NCLC resources, then demand collectors stop or sue.

You sue credit bureaus or furnishers in your state's small claims court if they violate FCRA or state credit repair laws by mishandling disputes. Courts enforce accurate reporting and award damages up to statutory limits.

Follow these steps:

1. Verify your claim fits small claims: Limits vary by state (e.g., $3,000 in Delaware, $15,000+ in California). Confirm exact limits, rules, and if your damages qualify.
2. Gather evidence: Collect dispute letters, bureau responses, proof of inaccuracies, and FCRA/state law citations.
3. Get forms: Download from your county court's website or clerk's office.
4. File your claim: Pay fees ($15-$200+ by state/county). Include bureau/furnisher details.
5. Serve the defendant: Use state‑approved methods (sheriff, certified mail, or alternatives). Note: Out‑of‑state bureaus may challenge jurisdiction despite nationwide operations - check rules first.
6. Attend hearing: Present your case. Judges often rule on the spot.

Consult local court resources or an attorney for specifics.

You leverage your state's identity theft laws to expedite fraud removal from your credit reports under FCRA §605B, which blocks disputed identity theft info federally. These state statutes provide extra criminal penalties and civil remedies that strengthen your disputes, though they rarely demand stricter bureau deletions than federal rules. Verify details via your state attorney general's office.

Texas Penal Code §32.51 criminalizes identity theft; Civil Practice and Remedies Code Chapter 142 adds civil remedies for victims. California's Penal Code §530.5 lets you sue thieves and aids credit disputes. New York's Penal Law §190.78-190.91 imposes penalties and supports victim recovery. Submit police reports citing these laws to credit bureaus for faster blocks.

You recheck credit repair rules in your new state after moving. State laws vary. They cover licensing, fee limits, and consumer protections for credit repair services. These differ from your old state. Federal rules stay the same nationwide.

Your dispute letters follow the federal Fair Credit Reporting Act (FCRA). You do not adjust their content for state rules. States add protections for services, not letter requirements. Search your new state's attorney general site for updates (rules may vary).