HB3461 Summary

• Renames the "Credit Services Organizations Act" to the "Credit Repair Organizations Act" throughout the statute.

• Prohibits credit repair organizations from charging fees until they achieve a permanent change to a consumer's credit report that persists for at least 6 months, verified by credit reports pulled before the contract start date, after the change occurs, and 6 months later.

• Requires credit repair organizations to submit semi-annual reports to the Director of Financial and Professional Regulation detailing numbers of buyers under contract, items questioned, items removed, items reinserted within 6 months, and items remaining removed for 6+ months.

• Establishes the Director's authority to audit advertisements for accuracy, issue annual reports to the General Assembly on credit repair services quality, and adopt necessary rules.

• Adds civil penalties of $5,000 for first violations and $10,000 for subsequent violations; repeals the surety bond requirement (Section 10); and makes violations of federal credit repair and telemarketing laws also violations of this Act.