New York

State Laws

New York Credit Repair Laws.

This state currently has legislation pertaining to credit repair. These laws apply to the state that the consumer is located in, not the credit repair company. Keep this in mind if you plan on doing business out of state.

**DISCLAIMER - The following information is not legal advice. We strive to keep all information updated to the best of our knowledge but regulations are subject to change frequently, without our immediate awareness. The information on this page may not be 100% accurate. We strongly urge you to do your own research and to consult with a legal professional or your local legislators before making any decisions. 

New York Attorney General

Department Overseeing Entity

New York

Registration Requirements.

Some states require registration with the overseeing entity. There may also be municipal or county regulations regarding business licensing or permits depending on your location. Consult with your local government to determine licensing requirements. 

Registration required?


Fee for registration?


Additional fees?


Link to registration requirements?


Link to registration forms?


New York

Bond Requirements.

Surety bonds are required in certain states in order to prove that the credit repair organization is operating in an ethical manner. The amount and requirements vary from state to state.

Bond required?


Amount of bond required?


Link to bond requirements?


Link to bond submission application?


New York

Contract Requirements.

All credit repair organizations are subject to both state and federal regulations. According to federal law, the Credit Repair Organizations Act (CROA) requires all CRO's to provide contracts outlining the terms and descriptions of their services to their customers. Each individual state has different requirements regarding the language of those contracts.

Attorneys exempt?


CPAs exempt?

Not listed.

Financial advisors exempt?

Not listed.

Mortgage lenders/ Originators exempt?

Not listed.

Real estate agents exempt?

Not listed.

Non-profits exempt?


Non-profit exemption details, restrictions?

As defined in paragraph (a) of section one hundred two (Definitions) of the not-for-profit corporation law licensed pursuant to article twelve-c of the banking law.

To view full legal text, see below or visit N.Y. Gen. Bus. 28-BB § 458-a et seq. for the most updated version.


§   458-a.   Legislative  findings  and  declarations;  purposes.  The
  legislature finds and declares:
    1. The ability to obtain and use credit has become of great importance
  to consumers, who have a vital interest in establishing and  maintaining
  their  credit worthiness and credit standing. As a result, consumers who
  have  experienced  credit  problems  may  seek  assistance  from  credit
  services  businesses  which offer to improve the credit standing of such
    Certain advertising and business practices of some  companies  engaged
  in the business of credit services have worked a financial hardship upon
  the  people of this state, often those who are of limited economic means
  and inexperienced in credit matters.
    2. The purposes of this article are to provide  prospective  consumers
  of  services of credit services companies with the information necessary
  to make an informed decision regarding the purchase  of  those  services
  and  to  protect  the  public  from  unfair or deceptive advertising and
  business practices.

§ 458-b. Definitions. As used in this article:
    1. "Credit services business" means any person who sells, provides, or
  performs,  or represents that he can or will sell, provide or perform, a
  service for the express or implied purpose  of  improving  a  consumer's
  credit record, history, or rating or providing advice or assistance to a
  consumer  with  regard to the consumer's credit record history or rating
  in return for the payment of a fee.
    "Credit services business" does not include any of the following:
    (a) Any charitable corporation as defined in paragraph (a) of  section
  one  hundred  two  (Definitions)  of  the not-for-profit corporation law
  licensed pursuant to article twelve-c of the banking law.
    (b) Any person admitted to practice law in this state where the person
  renders services within the course and scope of his or her  practice  as
  an attorney at law.
    2. "Consumer" means any natural person who is solicited to purchase or
  who purchases the services of a credit services business.
    3.  "Person"  includes  an individual, corporation, partnership, joint
  venture, or any business entity.
    4.  The  terms  "consumer  reporting   agency",   "consumer   report",
  "investigative consumer report", "file", and "adverse information" shall
  have  the meanings ascribed to each by section three hundred eighty-a of
  this chapter.

§ 458-c. Information statement; procedure. Prior to the execution of a
  contract  between  a consumer and a credit services business, the credit
  services business shall provide the consumer an information statement in
  writing, on a separate sheet, containing  the  information  required  by
  section  four  hundred fifty-eight-d of this chapter. The consumer shall
  acknowledge  receipt  of  such  information  statement  by  placing  his
  signature  on  the  face  thereof.  The  credit  services business shall
  maintain on file or microfilm for a period of two years from the date of
  such acknowledgement an exact copy of such information statement.

§  458-d.  Information statement; contents.  The information statement
  shall be printed in at least  ten  point  type  and  shall  include  the
                         "RIGHT TO REVIEW YOUR FILE"
    "The  Federal  Fair  Credit  Reporting Act gives you the right to know
  what your credit file contains, and the consumer reporting  agency  must
  provide someone to help you interpret the data. The New York Fair Credit
  Reporting  Act  gives  you  the  right to receive an actual copy of your
  credit report.   You will  be  required  to  identify  yourself  to  the
  consumer  reporting  agency and you may be charged a small fee. There is
  no fee, however, if you have been turned down for credit, employment, or
  insurance because of  information  contained  in  a  report  within  the
  preceding thirty days."
                           "INCORRECT INFORMATION"
    "Consumer   reporting  agencies  are  required  to  follow  reasonable
  procedures to  ensure  that  subscribing  creditors  report  information
  accurately.  However, mistakes may occur.
    When  you  notify  the  consumer  reporting agency in writing that you
  dispute the accuracy of information, it must reinvestigate and modify or
  remove inaccurate data. The consumer reporting agency may not charge any
  fee for this service. Any pertinent data you have  concerning  an  error
  should be given to the consumer reporting agency.
    If  reinvestigation does not resolve the dispute to your satisfaction,
  you may enter a statement of one hundred words or  less  in  your  file,
  explaining why you think the record is inaccurate.
    The  consumer  reporting  agency  must  include  your  statement about
  disputed data -- or a coded version of it -- with any reports it  issues
  about  you.  New  York  law  also  provides  that,  at your request, the
  consumer reporting agency must notify any  person  who  has  received  a
  report  in  the  previous  year  that  an error existed and furnish such
  person with the corrected information."
                        "TIME LIMITS ON ADVERSE DATA"
    "Most kinds of information in your file may be reported for  a  period
  of  seven years. If you have declared personal bankruptcy, however, that
  fact may be reported for ten years.
    After seven years or ten years, the information can't be disclosed  by
  a credit reporting agency unless you are being investigated for a credit
  application  of  $50,000  or  more,  for an application to purchase life
  insurance of $50,000 or more, or for employment at an annual  salary  of
  $25,000 or more."

§  458-e.  Advance  fees  prohibited.  It  is hereby declared to be an
  unfair and deceptive trade practice and unlawful for a  credit  services
  business to receive or collect from a consumer any fee in advance of the
  performance  of  those services specified in the contract as required by
  section four hundred fifty-eight-f of this chapter.

    §  458-f.  Contracts;  requirements  and  contents.  1. Every contract
  between a consumer and a credit services business shall be  in  writing,
  shall  be dated, shall contain the street address of the credit services
  business and the consumer, and shall  be  signed  by  the  consumer  and
  credit services business. Each contract shall contain the following:
    (a)  A complete and detailed statement of the services to be performed
  and the results to be achieved by the credit services business for or on
  behalf of the consumer, including a  list  of  the  adverse  information
  appearing  on  the  consumer's  credit  report  that will be modified, a
  description  of  the  precise  nature  of  each  modification,  and  the
  estimated  date  by  which  each  modification will occur. A copy of the
  consumer's current credit report issued by a consumer  credit  reporting
  agency  shall  be  annexed  to  the  contract  with  the adverse entries
  proposed to be modified clearly marked.
    (b) A statement in at least ten point type as follows:
    "Under New York law no fee may be collected in advance of  performance
  of the services specified in this contract."
    2. The contract shall be accompanied by a completed form in duplicate,
  captioned  "Notice  of  Cancellation,"  which  shall  be attached to the
  contract and easily detachable, and which shall contain in at least  ten
  point type the following:
                           "Notice of Cancellation"
    "You may cancel this contract,  without any  penalty or  obligation,
  within three days from the date the contract is signed.
    "To cancel this contract, mail or deliver a signed and dated copy of
  this cancellation notice, or any other written notice,
  to____________________ at
      (name of seller)
      (address of seller)             (Place of business)
    not later than midnight____________________.
      "I hereby cancel this transaction."
                                (purchaser's signature)
    3.  A  copy  of  the  fully completed contract and all other documents
  shall be given to the buyer at the time the contract is signed.
§  458-g.  Contracts  void  and  unenforceable.  1.  Any  contract for
  services which does not comply with the applicable  provisions  of  this
  article shall be void and unenforceable as contrary to public policy.
    2. Any waiver by a consumer of the provisions of this article shall be
  deemed  void and unenforceable by a credit services business as contrary
  to public policy.

§  458-h.  Deceptive  acts  prohibited. It is hereby declared to be an
  unfair and deceptive trade practice and unlawful for a  credit  services
  company to:
    1. Misrepresent directly or indirectly in its advertising, promotional
  materials,  sales  presentation,  or  in  any  manner: the nature of the
  services to be  performed;  the  time  within  which  services  will  be
  performed;  the  ability to improve a consumer's credit report or credit
  rating; the amount or type of credit a consumer can expect to receive as
  a result of the performance of the services offered; the qualifications,
  training or experience of its personnel.
    2. Make or counsel or advise any consumer to make any statement  which
  is  untrue or misleading and which is known, or which by the exercise of
  reasonable care should be known,  to  be  untrue  or  misleading,  to  a
  consumer  credit  reporting  agency  or  to  any person who has extended
  credit to a consumer or to whom a consumer is applying for an  extension
  of  credit,  with  respect  to  a  consumer's  credit worthiness, credit
  standing, or credit capacity.
    3. Represent directly or indirectly in  its  advertising,  promotional
  materials,  sales  presentation, or in any manner that it can procure or
  obtain a credit card for a consumer unless that credit services  company
  has authority to issue the credit card being advertised.

§  458-i.  Action  for  recovery  of damages by consumer. Any consumer
  injured by a violation of this article or by the breach  by  the  credit
  services  business of a contract which has been entered into pursuant to
  section four hundred fifty-eight-f of this chapter may bring  an  action
  for  recovery  of  damages.  Judgment  shall  be  entered  in favor of a
  consumer in an amount not to exceed three times the actual damages,  but
  in no case less than the amount paid by the buyer to the credit services
  business. The court may award reasonable attorney's fees to a prevailing

§  458-j.  Enforcement  by  attorney general. In addition to the other
  remedies provided, whenever there shall be a violation of this  article,
  application  may  be  made  by  the  attorney general in the name of the
  people  of  the  state  of  New  York  to  a  court  or  justice  having
  jurisdiction  by  a  special proceeding to issue an injunction, and upon
  notice to the defendant of not  less  than  five  days,  to  enjoin  and
  restrain  the  continuance of such violations; and if it shall appear to
  the satisfaction of the court or justice  that  the  defendant  has,  in
  fact,  violated  this article, an injunction may be issued by such court
  or justice, enjoining and restraining  any  further  violation,  without
  requiring  proof  that  any person has, in fact, been injured or damaged
  thereby. In any such proceeding, the court may make  allowances  to  the
  attorney  general  as  provided  in  paragraph six of subdivision (a) of
  section eighty-three hundred three of the civil practice law and  rules,
  and  direct  restitution.  Whenever  the  court  shall  determine that a
  violation of this article has occurred, the court  may  impose  a  civil
  penalty  of  not  more  than one thousand dollars for each violation. In
  connection with any such proposed application, the attorney  general  is
  authorized  to take proof and make a determination of the relevant facts
  and to issue subpoenas in accordance with the  civil  practice  law  and

   §  458-k.  Severability.  If  any  provision of this article or if any
  application thereof to any person or circumstance is held  invalid,  the
  remainder  of this article and the application of the provision to other
  persons and circumstances shall not be affected thereby.
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