CREDIT REPAIR ORGANIZATIONS

Amends the Credit Services Organizations Act. Changes the list of prohibitions imposed on a credit services organization to include: charging or receiving any money or other valuable consideration before providing services listed in the contract (rather than charging or receiving any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform); guaranteeing that a buyer's credit score or credit report will be improved through that buyer contracting with the credit services organization; adding an authorized user to a credit card account; seeking an investigation by a third party of a trade line on a credit report without the authorization of the buyer; making any statement intended to alter the buyer's identification; engaging in any act that constitutes or results in fraud or deception on any person in connection with the offer or sale of the services of the credit services organization; failing to obtain a $100,000 bond; failing to allow the buyer to cancel a contract with the credit services organization; failing to permit the buyer to cancel a contract within 5 business days after the contract was signed by the buyer; failing to provide the buyer with a copy of the fully completed contract and other specified documents; and failing to pay a buyer a reasonable compensation for trade line data reinserted in a credit report. Provides that, if a credit services organization agrees to provide services on a periodic basis, the organization must provide a detailed written description of those services that explains how the buyer will be billed in substantially equal periodic payments at fixed time intervals. Requires: a statement alerting the buyer of the cancellation notice form attached to the contract to be written in at least 10-point boldface type; and the written contract to include a complete and detailed description of the services to be performed by the credit services organization and the total cost to the buyer for such services. Requires a credit services organization to obtain a surety bond and adhere to certain procedures. Requires the surety bond to be maintained for 5 (rather than 2) years after the date that the credit services organization ceases operations. Makes other changes.