September 21, 2006
RE: NATIONAL CONSUMER ORGANIZATIONS URGE OPPOSITION TO CREDIT
REPAIR ORGANIZATIONS ACT BILL (H.R. 6129) ON HOUSE FLOOR
We understand that legislation introduced by Representative Royce to weaken the Credit
Repair Organizations Act (CROA) may be on the House Floor very soon. The undersigned
national consumer organizations strongly urge you to vote against H.R. 6129 because it
goes far beyond the stated purpose of exempting credit monitoring activities from coverage
under CROA. The bill would undermine a viable and important consumer protection law.
Currently, CROA broadly applies to any person who, in return for money, provides
services to improve a consumer’s credit record. Only non-profit organizations and a few other
entities are exempted. In addition to requiring key disclosures, and mandating important contract
terms, the Act prohibits credit repair agencies from violating standards of truthfulness, fraud or
Advocates for consumers have found CROA a useful tool in dealing with a range of bad
actors in the credit marketplace, a tool which will no longer be available if this bill is enacted.
Below are some examples of the consumer protections in the current law that would not be
available under this amendment.
For the full letter, click here (PDF format).