(ii) the length of the period necessary to perform such services; (3) the credit repair organization's name and principal business address; and (4) a conspicuous statement in bold face type, in immediate proximity to the space reserved for the consumer's signature on the contract, which reads as follows: "You may cancel this contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you signed the contract. See the attached notice of cancellation form for an explanation of this right.". SEC. 407. [15 U.S.C. 1679e] RIGHT TO CANCEL CONTRACT. (a) IN GENERAL.-Any consumer may cancel any contract with any credit repair organization without penalty or obligation by notifying the credit repair organization of the consumer's intention to do so at any time before midnight of the 3rd business day which begins after the date on which the contract or agreement between the consumer and the credit repair organization is executed or would, but for this subsection, become enforceable against the parties. (b) CANCELLATION FORM AND OTHER INFORMATION.-Each contract shall be accompanied by a form, in duplicate, which has the heading "Notice of Cancellation" and contains in bold face type the following statement: "You may cancel this contract, without any penalty or obligation, at any time before midnight of the 3rd day which begins after the date the contract is signed by you. "To cancel this contract, mail or deliver a signed, dated copy of this cancellation notice, or any other written notice to [ name of credit repair organization ] at [ address of credit repair organization ] before midnight on [ date ] "I hereby cancel this transaction, [ date ] [ purchaser's signature ].". (c) CONSUMER COPY OF CONTRACT REQUIRED.-Any consumer who enters into any contract with any credit repair organization shall be given, by the organization (1) a copy of the completed contract and the disclosure statement required under section 405; and (2) a copy of any other document the credit repair organi zation requires the consumer to sign, at the time the contract or the other document is signed. SEC. 408. [15 U.S.C. 1679f] NONCOMPLIANCE WITH THIS TITLE. (a) CONSUMER WAIVERS INVALID.-Any waiver by any consumer of any protection provided by or any right of the consumer under this title (1) shall be treated as void; and (2) may not be enforced by any Federal or State court or any other person. (b) ATTEMPT TO OBTAIN WAIVER.-Any attempt by any person to obtain a waiver from any consumer of any protection provided by or any right of the consumer under this title shall be treated as a violation of this title. (c) CONTRACTS NOT IN COMPLIANCE.—Any contract for services which does not comply with the applicable provisions of this title(1) shall be treated as void; and (2) may not be enforced by any Federal or State court or any other person. SEC. 409. [15 U.S.C. 1679g] CIVIL LIABILITY. (a) LIABILITY ESTABLISHED.-Any person who fails to comply with any provision of this title 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. SEC. 410. [15 U.S.C. 1679h] ADMINISTRATIVE ENFORCEMENT. (a) IN GENERAL.-Compliance with the requirements imposed under this title with respect to credit repair organizations shall be enforced under the Federal Trade Commission Act by the Federal Trade Commission. (b) VIOLATIONS OF THIS TITLE TREATED AS VIOLATIONS OF FEDERAL TRADE COMMISSION ACT.— (1) IN GENERAL.-For the purpose of the exercise by the Federal Trade Commission of the Commission's functions and powers under the Federal Trade Commission Act, any violation of any requirement or prohibition imposed under this title with respect to credit repair organizations shall constitute an unfair or deceptive act or practice in commerce in violation of section 5(a) of the Federal Trade Commission Act. (2) ENFORCEMENT AUTHORITY UNDER OTHER LAW.-All functions and powers of the Federal Trade Commission under the Federal Trade Commission Act shall be available to the Commission to enforce compliance with this title by any person subject to enforcement by the Federal Trade Commission pursuant to this subsection, including the power to enforce the provisions of this title in the same manner as if the violation had been a violation of any Federal Trade Commission trade regulation rule, without regard to whether the credit repair organization— (A) is engaged in commerce; or (B) meets any other jurisdictional tests in the Federal Trade Commission Act. (c) STATE ACTION FOR VIOLATIONS.— (1) AUTHORITY OF STATES.-In addition to such other remedies as are provided under State law, whenever the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this title, the State (A) may bring an action to enjoin such violation; (B) may bring an action on behalf of its residents to recover damages for which the person is liable to such residents under section 409 as a result of the violation; and (C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorney fees as determined by the court. (2) RIGHTS OF COMMISSION. (A) NOTICE TO COMMISSION.-The State shall serve prior written notice of any civil action under paragraph (1) upon the Federal Trade Commission and provide the Commission with a copy of its complaint, except in any case where such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action. (B) INTERVENTION.-The Commission shall have the right (i) to intervene in any action referred to in subparagraph (A); (ii) upon so intervening, to be heard on all matters arising in the action; and (iii) to file petitions for appeal. (3) INVESTIGATORY POWERS.-For purposes of bringing any action under this subsection, nothing in this subsection shall prevent the chief law enforcement officer, or an official or agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence. (4) LIMITATION.-Whenever the Federal Trade Commission has instituted a civil action for violation of this title, no State may, during the pendency of such action, bring an action under this section against any defendant named in the complaint of the Commission for any violation of this title that is alleged in that complaint. SEC. 411. [15 U.S.C. 1679i] STATUTE OF LIMITATIONS. Any action to enforce any liability under this title may be brought before the later of (1) the end of the 5-year period beginning on the date of the occurrence of the violation involved; or (2) in any case in which any credit repair organization has materially and willfully misrepresented any information which (A) the credit repair organization is required, by any provision of this title, to disclose to any consumer; and (B) is material to the establishment of the credit repair organization's liability to the consumer under this title, the end of the 5-year period beginning on the date of the discovery by the consumer of the misrepresentation. SEC. 412. [15 U.S.C. 1679j] RELATION TO STATE LAW. This title shall not annul, alter, affect, or exempt any person subject to the provisions of this title from complying with any law of any State except to the extent that such law is inconsistent with any provision of this title, and then only to the extent of the inconsistency. SEC. 413. [15 U.S.C. 1679 nt] EFFECTIVE DATE. This title shall apply after the end of the 6-month period beginning on the date of the enactment of the Credit Repair Organizations Act, except with respect to contracts entered into by a credit repair organization before the end of such period. Sec. TITLE V-GENERAL PROVISIONS 501. Severability. 502. Captions and catchlines for reference only. 503. Grammatical usages. 504. Effective dates. § 501. [15 U.S.C. 1602 note] Severability If a provision enacted by this Act is held invalid, all valid provisions that are severable from the invalid provision remain in effect. If a provision enacted by this Act is held invalid in one or more of its applications, the provision remains in effect in all valid applications that are severable from the invalid application or applications. § 502. [15 U.S.C. 1602 note] Captions and catchlines for reference only Captions and catchlines are intended solely as aids to convenient reference, and no inference as to the legislative intent with respect to any provision enacted by this Act may be drawn from them. § 503. [15 U.S.C. 1602 note] Grammatical usages In this Act: (1) The word "may" is used to indicate that an action either is authorized or is permitted. (2) The word "shall" is used to indicate that an action is both authorized and required. (3) The phrase "may not" is used to indicate that an action is both unauthorized and forbidden. (4) Rules of law are stated in the indicative mood. § 504. [15 U.S.C. 1602 note1] Effective dates (a) Except as otherwise specified, the provisions of this Act take effect upon enactment. (b) Chapters 2 and 3 of title I take effect on July 1, 1969. (d) Title VI takes effect upon the expiration of one hundred and eighty days following the date of its enactment. Sec. TITLE VI-CONSUMER CREDIT REPORTING 601. Short title. 602. Findings and purpose. 603. Definitions and rules of construction. 604. Permissible purposes of reports. 605. Requirements relating to information contained in consumer reports. 606. Disclosure of investigative consumer reports. 607. Compliance procedures. 608. Disclosures to governmental agencies. 609. Disclosure to consumers. 610. Conditions and form of disclosure to consumers. 611. Procedure in case of disputed accuracy. 612. Charges for certain disclosures. 613. Public record information for employment purposes. 614. Restrictions on investigative consumer reports. 615. Requirements on users of consumer reports. 616. Civil liability for willful noncompliance. 617. Civil liability for negligent noncompliance. 618. Jurisdiction of courts; limitation of actions. 619. Obtaining information under false pretenses. 620. Unauthorized disclosures by officers or employees. 621. Administrative enforcement. 622. Information on overdue child support obligations. 623. Responsibilities of furnishers of information to consumer reporting agencies. 624. Relation to State laws. 1 624. Disclosures to FBI for counterintelligence purposes. § 601. [15 U.S.C. 1601 note] Short title This title may be cited as the Fair Credit Reporting Act. 2 § 602. [15 U.S.C. 1681] Findings and purpose (a) The Congress makes the following findings: (1) The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the effi 1So in law. The second item designated as section 624 should probably be redesignated as section 625. Section 2413(b) of P.L. 104-208 (110 Stat. 3009-449) redesignated the item relating to section 623 as section 624 and inserted an item relating to a new section 623. Section 601(b) of P.L. 104-93 (109 Stat. 977) had already added an item relating to section 624. 2 So in law. The short title probably should be within quotation marks. |