Credit Services - Obligations Arising From Particular Transactions - Civil Law - CA

Section § 1789.10

This section declares the official name of the law as the “Credit Services Act of 1984.”

This title shall be known and may be cited as the “Credit Services Act of 1984.”

Credit Services Act 1984 law citation ...

Section § 1789.11

This law emphasizes the importance of credit for consumers and acknowledges that many people need help to establish and maintain good credit. It highlights the role of credit services organizations in providing this help but also points out that some of these organizations use misleading advertising and practices that can hurt financially vulnerable and inexperienced consumers. The law aims to ensure that consumers have the right information to make smart choices about using credit services and to protect them from unfair practices. It should be interpreted in a way that best achieves these protective goals.

The Legislature finds and declares that:

(a) The ability to obtain and use credit has become of great importance to consumers, who have a vital interest in establishing and maintaining their creditworthiness and credit standing. As a result, consumers who have experienced credit problems may seek assistance from credit services organizations which offer to obtain credit or improve the credit standing of those consumers.

Certain advertising and business practices of some credit services organizations have worked a financial hardship upon the people of this state, often those who are of limited economic means and inexperienced in credit matters. Credit services organizations have significant impact upon the economy and well-being of this state and its people.

(b) The purposes of this title are to provide prospective consumers of services of credit services organizations with the information necessary to make an intelligent decision regarding the purchase of those services and to protect the public from unfair or deceptive advertising and business practices.

credit services organizations consumer protection creditworthiness ...

Section § 1789.12

This section defines key terms related to credit services and reporting in California. 'Communication' involves sharing any debt or credit-related info. A 'consumer' is anyone buying services from a credit services organization. The 'credit services organization' refers to businesses that offer to improve your credit or help you get loans, but it excludes licensed loan providers, banks, financial institutions, licensed attorneys, and nonprofit organizations. An 'extension of credit' involves deferring payment for personal or household debts. The law also clarifies who counts as a 'data furnisher' or 'person' under these regulations.

As used in this title:

(a) “Communication” means the conveyance of any information regarding a debt, credit record, credit history, or credit rating, directly or indirectly, to any person by any means or through any medium.

(b) “Consumer” means any natural person who is solicited to purchase or who purchases the services of a credit services organization.

(d) “Credit services organization” means a person who, with respect to the extension of credit by others, sells, provides, or performs, or represents that the person can or will sell, provide, or perform, any of the following services, in return for the payment of money or other valuable consideration:

(1) Improving a consumer’s credit record, history, or rating.

(2) Obtaining a loan or other extension of credit for a consumer.

(3) Providing advice or assistance to a consumer with regard to either paragraph (1) or (2).

(e) “Credit services organization” does not include any of the following:

(1) Any person holding a license to make loans or extensions of credit pursuant to the laws of this state or the United States who is subject to regulation and supervision with respect to the making of those loans or extensions of credit by an official or agency of this state or the United States and whose business is the making of those loans or extensions of credit.

(2) Any bank, as defined in Section 103 of the Financial Code, or any savings institution, as specified in subdivision (a) or (b) of Section 5102 of the Financial Code, whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation.

(3) Any person licensed as a prorater by the Department of Financial Protection and Innovation when the person is acting within the course and scope of that license.

(4) Any person licensed as a real estate broker performing an act for which a real estate license is required under the Real Estate Law (Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code) and who is acting within the course and scope of that license.

(5) Any attorney licensed to practice law in this state, where the attorney renders services within the course and scope of the practice of law, unless the attorney is an employee of, or otherwise directly affiliated with, a credit services organization. This includes attorneys that regularly engage in litigation in furtherance of assisting consumers with credit issues.

(6) Any broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission where the broker-dealer is acting within the course and scope of the regulation.

(7) Any nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code that, according to a final ruling or determination by the Internal Revenue Service, is both of the following:

(A) Exempt from taxation under Section 501(a) of the Internal Revenue Code.

(B) Not a private foundation as defined in Section 509 of the Internal Revenue Code.

An advance ruling or determination of tax-exempt or foundation status by the Internal Revenue Service does not meet the requirements of this paragraph.

(f) “Data furnisher” has the same meaning as the term “furnisher” is defined in Section 660.2 of Title 16 of the Code of Federal Regulations.

(g) “Extension of credit” means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family, or household purposes.

(h) “Person” includes an individual, corporation, partnership, joint venture, or any business entity.

credit services organization extension of credit data furnisher ...

Section § 1789.13

This law outlines what credit services organizations and their representatives cannot do. They can't charge fees before completing services, must finish agreed services within 180 days, and are required to provide monthly updates. They can't make false or misleading statements or remove accurate credit information. They are prohibited from creating new credit records with false personal information and misleading customers about their services. Advertising without being registered is not allowed, and they must maintain an agent for legal service. They can't contact credit agencies without consumer consent or mislead credit grantors. They are also barred from extending credit directly or using deceptive tactics to sidestep these rules.

A credit services organization and its salespersons, agents, representatives, and independent contractors who sell or attempt to sell the services of a credit services organization shall not do any of the following:

(a) Charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit services organization has agreed to perform for or on behalf of the consumer.

(b) Fail to perform the agreed services within 180 days following the date the consumer signs the contract for those services.

(d) Charge or receive any money or other valuable consideration for referral of the consumer to a retail seller or other credit grantor who will or may extend credit to the consumer, if either of the following apply:

(1) The credit that is or will be extended to the consumer (A) is upon substantially the same terms as those available to the general public or (B) is upon substantially the same terms that would have been extended to the consumer without the assistance of the credit services organization.

(2) The money or consideration is paid by the credit grantor or is derived from the consumer’s payments to the credit grantor for costs, fees, finance charges, or principal.

(e) Make, or counsel or advise a consumer to make, a statement that is untrue or misleading and that is known, or that by the exercise of reasonable care should be known, to be untrue or misleading, to a consumer credit reporting agency or to a person who has extended credit to a consumer, to a data furnisher, or to any person with whom a consumer is applying for an extension of credit, such as statements concerning a consumer’s identification, home address, creditworthiness, credit standing, or credit capacity.

(f) Remove, or assist or advise the consumer to remove, adverse information from the consumer’s credit record that is accurate or not obsolete.

(g) Create, or assist or advise the consumer to create, a new credit record by using a different name, address, social security number, or employee identification number.

(h) Make or use untrue or misleading representations in the offer or sale of the services of a credit services organization, including either of the following:

(1) Guaranteeing or otherwise stating that the credit services organization is able to delete an adverse credit history, unless the representation clearly discloses, in a manner equally as conspicuous as the guarantee, that this can be done only if the credit history is inaccurate or obsolete and is not claimed to be accurate by the creditor who submitted the information.

(2) Guaranteeing or otherwise stating that the credit services organization is able to obtain an extension of credit, regardless of the consumer’s previous credit problems or credit history, unless the representation clearly discloses, in a manner equally as conspicuous as the guarantee, the eligibility requirements for obtaining an extension of credit.

(i) Engage, directly or indirectly, in an act, practice, or course of business that operates or would operate as a fraud or deception upon a person in connection with the offer or sale of the services of a credit services organization.

(j) Advertise or cause to be advertised, in any manner, the services of the credit services organization, without being registered with the Department of Justice.

(k) Fail to maintain an agent for service of process in this state.

(l) Transfer or assign its certificate of registration.

(m) Call or submit any communication to a consumer credit reporting agency, creditor, debt collector, or debt buyer without the prior written authorization of the consumer. A relevant authorization in the agreement or contract between a consumer and a credit services organization is sufficient for the purpose of this subdivision.

(n) Submit a consumer’s dispute to a consumer credit reporting agency, creditor, debt collector, or debt buyer more than 180 days after the account subject to the dispute has been removed from the consumer’s credit report.

(o) Use the online electronic portal, electronic mail system, or telephone system of a consumer credit reporting agency, creditor, debt collector, or debt buyer to submit a dispute of a consumer or to request disclosure without the prior written authorization of the consumer. A relevant authorization in the agreement or contract between a consumer and a credit services organization is sufficient for the purpose of this subdivision.

(p) Directly or indirectly extend credit to a consumer.

(q) Refer a consumer to a credit grantor that is related to the credit services organization by a common ownership, management, or control, including a common owner, director, or officer.

(r) Refer a consumer to a credit grantor for which the credit services organization provides, or arranges for a third party to provide, services related to the extension of credit such as underwriting, billing, payment processing, or debt collection.

(s) Provide a credit grantor with an assurance that a portion of an extension of credit to a consumer referred by the credit services organization will be repaid, including providing a guaranty, letter of credit, or agreement to acquire a part of the credit grantor’s financial interest in the extension of credit.

(t) Use a scheme, device, or contrivance to evade the prohibitions contained in this section.

(u) Fail to make a written communication sent on behalf of a consumer to any credit reporting agency, data furnisher, or legal counsel for either of the foregoing available to the consumer.

(v) Fail to provide along with its first written communication to a credit reporting agency or data furnisher any sufficient information to investigate an account.

(w) The seeking to obtain, or the obtaining of, a consumer’s credit report and the performance of other services necessary to determine the needs of a consumer for the reinvestigation of any accounts shall not constitute services of a credit services organization for which a contract is required pursuant to subdivision (a) of Section 1789.16, if that activity is undertaken with the consumer’s prior written, electronic, or recorded oral consent.

credit services organization charge before service credit repair ...

Section § 1789.14

Before signing a contract with a credit services organization, the company must give you a written statement with specific information they are required by law to provide. They also need to keep a copy of this statement on file for four years after your contract ends or is completed.

Before the execution of a contract or agreement between the consumer and a credit services organization, the credit services organization shall provide the consumer a statement in writing containing all the information required by Section 1789.15. The credit services organization shall maintain on file for a period of four years following the completion or termination of the credit services organization agreement with the consumer an exact copy of the statement.

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Section § 1789.15

This section requires that a credit services organization provide an information statement to consumers. This statement must clearly outline the services offered, the total costs involved, and information about the consumer's rights related to credit services. It includes details on how to proceed if there's an issue with the service, including how to take action against the bond, and provides contact details for complaints. The statement also informs consumers about the availability of nonprofit credit counseling and explains their rights under state and federal law, such as obtaining a free credit report annually, disputing inaccuracies, and knowing how long certain information remains on the credit report. Additionally, it mentions the consumer's right to cancel a contract with the organization within five days without any financial obligation. Lastly, it states the right to sue if the organization misleads the consumer.

The information statement shall include all of the following:

(a) A complete and detailed description of the services to be performed by the credit services organization for or on behalf of the consumer and the total amount the consumer will have to pay, or become obligated to pay, for the services.

(b) The consumer’s right to proceed against the bond under the circumstances and in the manner set forth in Section 1789.18.

(d) A complete and accurate statement of the availability of nonprofit credit counseling services.

(e) The following notice: If you have a complaint about the services provided by this credit services organization or the fees charged by this credit services organization, you may submit that complaint to the Attorney General’s office, California Department of Justice, Attn: ____, P.O. Box 944255, Sacramento, CA 94244-2550.

The information statement shall be printed in at least 10-point boldface type and shall include the following statement:

You have a right to obtain a free copy of your credit report from a credit reporting agency. You may obtain this free copy of your credit report one time per year by visiting www.AnnualCreditReport.com. You will be able to view your credit report, dispute alleged inaccuracies, and obtain additional information at no fee. If requested, the consumer credit reporting agency must provide someone to help you interpret the information in your credit file.

You have a right to dispute inaccurate information by contacting the consumer credit reporting agency directly. However, neither you nor any credit repair company or credit services organization has the right to have accurate, current, and verifiable information removed from your credit report. Under the Federal Fair Credit Reporting Act, the consumer credit reporting agency must remove accurate, negative information from your report only if it is over seven years old. Bankruptcy information can be reported for 10 years.

If you have notified a credit reporting agency in writing that you dispute the accuracy of information in your credit file, the consumer credit reporting agency must then reinvestigate and modify or remove inaccurate information. The consumer credit reporting agency may not charge a fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the consumer credit reporting agency.

If the reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the consumer credit reporting agency to keep in your file, explaining why you think the record is inaccurate. The consumer credit reporting agency must include your statement about disputed information in any report it issues about you.

You have a right to cancel the contract with the credit services organization for any reason before midnight on the fifth working day after you signed it. If for any reason you cancel the contract during this time, you do not owe any money.

You have a right to sue a credit services organization if it misleads you.”

credit services organization services description total amount owed ...

Section § 1789.16

If a credit services company wants to offer you services, they need to give you a written contract with certain details. The contract must include their contact information, a detailed description of services and payment terms, be signed by you, and let you know you can cancel within five working days. You must also get a Notice of Cancellation form that explains how you can cancel without penalty. If you do cancel, they have 15 days to refund any payments. A completed copy of the contract should be provided to you right away.

(a) A credit services organization shall not provide any service to a consumer except pursuant to a written contract that complies with this section. Every contract between the consumer and a credit services organization for the purchase of the services of the credit services organization shall identify the physical address, electronic mail address, and facsimile number if applicable, of the credit services organization, shall be in writing, shall be dated, shall be signed by the consumer, and shall include all of the following:

(1) A conspicuous statement in size equal to at least 10-point boldface type, in immediate proximity to the space reserved for the signature of the buyer, as follows:

“You, the consumer, may cancel this contract at any time before midnight on the fifth working day after you sign it. 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 consumer, whether to the credit services organization or to some other person.

(3) A full and detailed description of the services to be performed by the credit services organization for the consumer, including a list of the information appearing on the consumer’s credit report that the credit services organization will seek a reasonable reinvestigation of, as described in Title 15 of Section 1681i of the United States Code, all guarantees and all promises of full or partial refunds, and the estimated length of time for performing the services, not to exceed 180 days, or a shorter period consistent with the purposes of this title as may be prescribed by the Department of Justice.

(4) The credit services organization’s principal business address and the name and address of its agent, other than the Secretary of State, in the State of California, authorized to receive service of process.

(b) 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 type of at least 10-point the following statement written in the same language as used in the contract:

“You may cancel this contract, without any penalty or obligation, before midnight on the fifth working day after you sign it.

“If you cancel, any payment made by you under this contract must be returned within 15 days following receipt by the seller of your cancellation notice.

“To cancel this contract, mail or deliver a signed and dated copy of this cancellation notice, or any 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) _____

A copy of the fully completed contract and all other documents the credit services organization requires the buyer to sign shall be given to the consumer at the time they are signed.

credit services organization written contract cancellation rights ...

Section § 1789.17

If a seller breaks a contract or any related duty covered by this law, it's considered a violation of this law.

The seller’s breach of a contract under this title or of any obligation arising therefrom shall constitute a violation of this title.

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Section § 1789.18

In California, a credit services organization must have a $100,000 surety bond before doing business. This bond is to protect people who might be harmed by the organization's actions. If a person believes they've been wronged, they can sue the organization and the bond provider to recover their losses, although the bond only covers actual damages, not punitive damages. The total amount claimable by all affected persons cannot exceed the bond's value. The organization must keep this bond for two years after they stop operating in the state, and a copy must be filed with the Secretary of State.

No credit services organization shall conduct business in this state unless the credit services organization has first obtained a surety bond in the principal amount of one hundred thousand dollars ($100,000) issued by an admitted surety and the bond complies with all of the following:

(a) The bond shall be in favor of the State of California for the benefit of any person who is damaged by any violation of this title. The bond shall also be in favor of any individual damaged by those practices.

(b) Any person claiming against the bond for a violation of this title may maintain an action at law against the credit services organization and against the surety. The surety shall be liable only for actual damages and not the punitive damages permitted under Section 1789.21. The aggregate liability of the surety to all persons damaged by a credit services organization’s violation of this title shall in no event exceed the amount of the bond.

(c) The bond shall be maintained for two years following the date on which the credit services organization ceases to conduct business in this state.

A copy of the bond shall be filed with the Secretary of State.

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Section § 1789.19

This section says that consumers can't give up their rights under this law and any attempt to make them do so is against public policy and won't be valid. If a credit services organization tries to get a consumer to give up such rights, it would be violating the law. Additionally, if someone claims they are exempt from these rules, they must prove it themselves.

(a) Any waiver by a consumer of the provisions of this title shall be deemed contrary to public policy and shall be void and unenforceable. Any attempt by a credit services organization to have a consumer waive rights given by this title shall constitute a violation of this title.

(b) In any proceeding involving this title, the burden of proving an exemption or an exception from a definition is upon the person claiming it.

consumer rights waiver credit services organization public policy violation ...

Section § 1789.20

If someone breaks the rules in this section, it's considered a misdemeanor, which is a minor crime. The courts can step in to stop these actions. The job of taking legal action falls to the Attorney General, local district attorneys, and city attorneys. They can press criminal charges or take other legal steps to prevent further violations. However, this doesn't prevent anyone else from pursuing their legal rights. A seller simply breaking a contract covered by this title isn't treated as a misdemeanor under this law.

(a) Any person who violates any provision of this title is guilty of a misdemeanor. Any superior court of this state shall have jurisdiction in equity to restrain and enjoin the violation of any provision of this title.

The duty to institute actions for violation of this title, including equity proceedings to restrain and enjoin such a violation, is hereby vested in the Attorney General, district attorneys, and city attorneys. The Attorney General, any district attorney, or any city attorney may prosecute misdemeanor actions or institute equity proceedings, or both.

This section shall not be deemed to prohibit the enforcement by any person of any right provided by this or any other law.

(b) The misdemeanor provision of this section does not apply to a seller’s breach of a contract subject to this title.

misdemeanor court jurisdiction Restraining violations ...

Section § 1789.21

If a consumer is harmed because a credit services organization breaks this law or breaches a related contract, they can sue for money damages or ask the court to stop certain actions. They will at least get back what they paid to the organization and could also cover legal fees. Depending on the court's decision, they might even receive extra money as punishment to the company. Additionally, individuals or entities involved with credit reports, like credit reporting agencies or users of credit reports, can also sue if this law is violated. If they win, they can recover legal fees and costs as well.

(a) Any consumer injured by a violation of this title or by the credit services organization’s breach of a contract subject to this title may bring any action for recovery of damages, or for injunctive relief, or both. Judgment shall be entered for actual damages, but in no case less than the amount paid by the consumer to the credit services organization, plus reasonable attorney’s fees and costs. An award, if the trial court deems it proper, may be entered for punitive damages.

(b) Any person, including, but not limited to, a consumer credit reporting agency, as defined in subdivision (d) of Section 1785.3, and any consumer of, or user of, a consumer credit report under the Consumer Credit Reporting Agencies Act (Title 1.6 (commencing with Section 1785.1)), and any furnisher of credit information under the Consumer Credit Reporting Agencies Act, may bring an action for the recovery of damages or for injunctive relief, or both, for a violation of this title. Any person bringing such an action who prevails in the action shall be entitled to reasonable attorney’s fees and costs.

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Section § 1789.22

This law clarifies that the rules in this section don't replace or cancel out other legal obligations. If you break the rules in this section, you could face additional punishments or remedies beyond this section, according to other laws.

The provisions of this title are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with any other applicable provision of law.

The remedies provided in this title for violation of any section of this title shall be in addition to any other procedures or remedies for any violation or conduct provided for in any other law.

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Section § 1789.23

This law says that if a specific part of this law is found to be invalid or doesn't apply to someone or a situation, the rest of the law remains in effect and can still be applied to others and different situations.

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

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Section § 1789.24

This law talks about what happens when a deposit is made instead of a bond, particularly for credit services organizations. If someone makes a claim against this deposit, they must show proof of a court judgment to the Secretary of State. Once a claim is approved by the Secretary, it won't be paid until 240 days have passed. All approved claims within the same 240-day period will be paid from the deposit, but if there's not enough money, they'll each get a share. If there’s still money in the deposit after paying claims, the whole process can start again after 240 days. Once the deposit runs out, no more claims can be paid. If a credit services organization stops doing business, the deposit is held for two years unless a judge says otherwise. However, these funds can’t be seized for other debts of the organization. The Secretary of State keeps track of all this and may return the deposit early if a judge agrees there are no outstanding claims.

(a) When a deposit has been made in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure, the person asserting a claim against the deposit shall, in lieu of proceeding under Section 996.430 of the Code of Civil Procedure, establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court, together with evidence that the claimant is a person described in subdivision (b) of Section 1789.18.

(b) When a person has established the claim with the Secretary of State, the Secretary of State shall review and approve the claim and enter the date of approval thereon. The claim shall be designated an “approved claim.”

(c) When the first claim against a particular deposit has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims that are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon the expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless the deposit is insufficient, in which case each approved claim shall be paid a pro rata share of the deposit.

(d) When the Secretary of State approves the first claim against a particular deposit after the expiration of a 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (c) shall apply with respect to any amount remaining in the deposit.

(e) After a deposit is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivision (c) or (d) shall not be required to return funds received from the deposit for the benefit of other claimants.

(f) When a deposit has been made in lieu of a bond, as specified in subdivision (a), the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the credit services organization, other than as to an amount as no longer needed or required for the purpose of this title which would otherwise be returned to the credit services organization by the Secretary of State.

(g) The Secretary of State shall retain a cash deposit for two years from the date the Secretary of State receives written notification from the assignor of the deposit that the assignor has ceased to engage in the business of a credit services organization or has filed a bond pursuant to Section 1789.18, provided that there are no outstanding claims against the deposit. The written notice shall include all of the following: (1) name, address, and telephone number of the assignor; (2) name, address, and telephone number of the bank at which the deposit is located; (3) account number of the deposit; and (4) a statement whether the assignor is ceasing to engage in the business of a credit services organization or has filed a bond with the Secretary of State. The Secretary of State shall forward an acknowledgment of receipt of the written notice to the assignor at the address indicated therein, specifying the date of receipt of the written notice and anticipated date of release of the deposit.

(h) This section shall apply to all deposits retained by the Secretary of State.

(i) A judge of a superior court may order the return of the deposit prior to the expiration of two years upon evidence satisfactory to the judge that there are no outstanding claims against the deposit or order the Secretary of State to retain the deposit for a sufficient period beyond the two years specified in subdivision (g) to resolve outstanding claims against the deposit account.

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Section § 1789.25

Before a credit services organization can do business in California, it must register with and get a certificate from the Department of Justice. For this, the organization needs to file a bond and pay a $100 fee. The application must include details like company location, key shareholders, and any related lawsuits or complaints. The Department of Justice may verify the information, potentially requiring funds for investigations if needed. Organizations must notify the department of significant changes and can only use one trade name. The registration is valid for one year and can be renewed for a fee. Additionally, the organization must include customer contracts and a bond copy with their registration. If the organization violates certain laws or uses misleading practices, they won't be granted registration. The Department will keep an online list of registered organizations.

(a) Every credit services organization shall file a registration application with, and receive a certificate of registration from, the Department of Justice before conducting business in this state. The Department of Justice shall not issue a certificate of registration until the bond required by Section 1789.18 has been filed with the Office of the Secretary of State and the department establishes that the organization seeking a certificate satisfies the requirements of subdivision (f). The application shall be accompanied by a registration fee of one hundred dollars ($100). The registration application shall contain all of the following information:

(1) The name and address where business is actually conducted of the credit services organization.

(2) The names, addresses, and driver’s license numbers of any and all persons who directly or indirectly own or control 10 percent or more of the outstanding shares of stock in the credit services organization.

(3) Either of the following:

(A) A full and complete disclosure of any litigation commenced against the credit services organization or any resolved or unresolved complaint that relates to the operation of the credit services organization and that is filed with the Attorney General, or any other governmental authority of this state, any other state, or the federal government. With respect to each resolved complaint identified by the disclosure, the disclosure shall include a brief description of the resolution.

(B) An acknowledged declaration, under penalty of perjury, stating that no litigation has been commenced and no unresolved complaint relating to the operation of the organization has been filed with the Attorney General, or any other governmental authority of this state, any other state, or the federal government.

(4) Other information that the Department of Justice requires, either at the time of application or thereafter.

(b) The Department of Justice may conduct an investigation to verify the accuracy of the registration application. If the application involves investigation outside this state, the applicant credit services organization may be required by the Department of Justice to advance sufficient funds to pay the actual expenses of the investigation. Any nonresident applying for registration under this section shall designate and maintain a resident of this state as the applicant’s agent for the purpose of receipt of service of process.

(c) Each credit services organization shall notify the Department of Justice in writing within 30 days after the date of a change in the information required by subdivision (a), except that 30 days’ advance notice and approval by the Department of Justice shall be required before changing the corporate name or address, or persons owning more than 10 percent of the shares of stock in the organization. Each credit services organization registering under this section may use no more than one fictitious or trade name and shall maintain a copy of the registration application in its files. The organization shall allow a buyer to inspect the registration application upon request.

(d) A certificate of registration issued pursuant to this section shall expire one year after it was issued, but may be renewed by filing a renewal application accompanied by a fee in an amount to be determined annually by the Department of Justice as is reasonable and necessary to satisfy its costs in complying with its duties under this title to regulate credit services organizations. The Department of Justice may, periodically, increase the fee, but the amount of the fee shall not exceed that which is reasonable and necessary to satisfy its costs in complying with its duties under this title to regulate credit services organizations.

(e) The credit services organization shall attach to the registration statement a copy of the contract or contracts which the credit services organization intends to execute with its customers and a copy of the required bond.

(f) The Department of Justice shall not issue a certificate of registration under this title to any person who has engaged in, or proposes to engage in, any activity that is in violation of Section 1789.13, any law prohibiting the use of untrue or misleading statements, or any law related to the extension of credit to persons for personal, family, or household purposes.

(g) The Department of Justice shall maintain on a publicly available internet website a list of the credit services organizations that are registered in this state.

credit services organization Department of Justice certificate of registration ...

Section § 1789.26

This law states that the Secretary of State is responsible for overseeing how bonds and alternative deposits are filed and maintained. They also have the authority to collect fees for these filings, which shouldn't exceed the actual cost of handling them.

(a) The Secretary of State shall enforce the provisions of this title that govern the filing and maintenance of bonds and deposits in lieu of bonds.

(b) The Secretary of State shall charge and collect a filing fee not to exceed the cost of filing the bond or the deposit in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure.

Secretary of State responsibilities filing and maintenance of bonds deposits in lieu of bonds ...

Section § 1789.134

If a person is represented by a credit services organization, entities like credit reporting agencies or debt collectors must communicate with that organization, unless the organization doesn't respond in 30 days or the person requests otherwise. These entities are exempt from communicating with the credit services organization if the account in question is resolved, removed from a credit report, or verified according to specific regulations, or if the dispute is deemed irrelevant or frivolous.

(a) A consumer credit reporting agency, creditor, debt collector, or debt buyer that knows that a consumer is represented by a credit services organization, and that also has knowledge of, or can readily ascertain the credit services organization’s name and address shall communicate with the credit services organization unless either of the following circumstances apply:

(1) The credit services organization fails to respond within 30 days to a communication from a consumer credit reporting agency, creditor, debt collector, or debt buyer.

(2) The consumer expressly directs the consumer credit reporting agency, creditor, debt collector, or debt buyer not to communicate with the credit services organization.

(b) Notwithstanding subdivision (a), a consumer credit reporting agency, creditor, or debt collector shall not be required to communicate with a credit services organization concerning an account that is subject to a dispute if any of the following apply:

(1) The account subject to the dispute has been paid, settled, or otherwise resolved and has been reported as paid, settled, or otherwise resolved on the consumer’s credit report.

(2) The account subject to the dispute has been removed from the consumer’s credit report.

(3) The debt collector has provided to the credit services organization or to the consumer the verification information or documentation described in Section 1692g(b) of Title 15 of the United States Code regarding the account subject to dispute.

(4) The debt buyer has provided to the credit services organization or to the consumer the information or documentation described in subdivisions (a) and (b) of Section 1788.52 regarding the account subject to the dispute.

(5) The consumer credit reporting agency, creditor, or debt collector reasonably determines that the dispute is frivolous or irrelevant pursuant to Section 1681i(a)(3) or Section 1681s-2(a)(1)(F) of Title 15 of the United States Code.

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Section § 1789.135

This law requires credit services organizations to protect consumers' personal information when sending it by fax, email, mail, or courier. They must only show the last four digits of important numbers like social security and account numbers, and only include the month and year if showing a date of birth. Full information can only be used if it's required by law or essential for achieving a specific goal. Simply redacting information as described doesn't breach any other related legal rules.

To protect against fraud and identity theft, when a credit services organization sends a written communication by facsimile, electronic mail, United States mail, overnight courier, or other means that contains personal information of a consumer, the credit services organization shall redact the personal information to include only the last four digits of the social security number, taxpayer identification number, or state identification number, the last four digits of the financial account number, credit card number, or debit card number, or the month and year of the consumer’s date of birth, unless the inclusion of the full number or date is otherwise required by law, or is legally permissible and required to achieve the desired objective. Redacting information pursuant to this subdivision shall not be considered a violation of subdivision (w) of Section 1789.13.

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