Credit Repair Organizations Act

The Credit Repair Organizations Act is a federal statute that protects consumers by regulating credit repair organizations. The text of this statute is provided as general information to the public. It may be amended, revised, or rescinded at any time without notice. This information is not intended to be legal advice. For more information, please see our disclaimer.

15 U.S.C. § 1679g. Civil liability

(a) Liability established. Any person who fails to comply with any provision of this title [15 USCS §§ 1679 et seq.] with respect to any other person shall be liable to such person in an amount equal to the sum of the amounts determined under each of the following paragraphs:
(1) Actual damages. The greater of--
(A) the amount of any actual damage sustained by such person as a result of such failure; or
(B) any amount paid by the person to the credit repair organization.
(2) Punitive damages.
(A) Individual actions. In the case of any action by an individual, such additional amount as the court may allow.
(B) Class actions. In the case of a class action, the sum of--
(i) the aggregate of the amount which the court may allow for each named plaintiff; and
(ii) the aggregate of the amount which the court may allow for each other class member, without regard to any minimum individual recovery.
(3) Attorneys' fees. In the case of any successful action to enforce any liability under paragraph (1) or (2), the costs of the action, together with reasonable attorneys' fees.

(b) Factors to be considered in awarding punitive damages. In determining the amount of any liability of any credit repair organization under subsection (a)(2), the court shall consider, among other relevant factors--
(1) the frequency and persistence of noncompliance by the credit repair organization;
(2) the nature of the noncompliance;
(3) the extent to which such noncompliance was intentional; and
(4) in the case of any class action, the number of consumers adversely affected.