Credit repair services contracts must be written and signed, include specified terms, and come with cancellation notices; the buyer can cancel within a short period and receive a refund if they do.
§3573.7. Form and terms of contract A. Each contract between the buyer and a credit repair services organization for the purchase of the services of the credit repair services organization must be in writing, dated, signed by the buyer, and must include: (1) A statement in type that is boldfaced, capitalized, underlined, or otherwise set out from surrounding written materials so as to be conspicuous, in immediate proximity to the space reserved for the signature of the buyer, as follows: "You, the buyer, may cancel this contract at any time before midnight of the fifth day after the date of the transaction. See the attached notice of cancellation form for an explanation of this right." (2) The terms and conditions of payment, including the total of all payments to be made by the buyer, whether to the credit repair services organization or to another person. (3) A full and detailed description of the services to be performed by the credit repair services organization for the buyer, including all guarantees and all promises of full or partial refunds, and the estimated length of time, not to exceed one hundred eighty days, for performing the services. (4) The address of the credit repair services organization's principal place of business and the name and address of its agent in the state authorized to receive service of process. B. The contract must have attached two easily detachable copies of a notice of cancellation. The notice must be in boldfaced type and in the following form: "Notice of Cancellation You may cancel this contract, without any penalty or obligation, within five days after the date the contract is signed. If you cancel, any payment made by you under this contract will be returned within ten days after the date of receipt by the seller of your cancellation notice. To cancel this contract, send by registered or certified mail, return receipt requested, or deliver in person, a signed dated copy of this cancellation notice, or other written notice to: (Name of seller) at (address of seller) (place of business) not later than midnight (date) . I hereby cancel this transaction. (date) (purchaser's signature) " C. The credit repair services organization shall give to the buyer a copy of the completed contract and all other documents the credit repair services organization requires the buyer to sign at the time they are signed. D. The breach by a credit repair services organization of a contract under this Part, or of any obligation arising from a contract under this Part, is a violation of this Part. Acts 1992, No. 345, §1.