Free CROA Compliance Scanner
CROA Compliance Scanner - Don't Get Shut Down
CROA violations = $10K+ fines per incident. FTC shutdowns destroy businesses overnight. 100+ credit repair millionaires stayed legal using this exact checklist. Scan your compliance status now.
You must provide a written statement titled 'Consumer Credit File Rights Under State and Federal Law' before any contract is signed.
Written notice of the consumer's right to cancel the contract within 3 business days must be provided separately from the contract.
If your state requires a surety bond, you must disclose bond information including the bonding company and bond amount.
A written contract must be provided to the consumer before any services are performed. Contract must be dated and signed by both parties.
The contract must clearly state the total cost of services, including all fees and charges the consumer will pay.
A detailed description of all services to be performed must be included in the contract, including the timeline for completion.
The contract must specify the date by which the services will be completed or the length of the performance period.
Your business name and physical address must be clearly stated in the contract.
You cannot charge or receive any fee before services are fully performed. Payment can only be collected after work is completed.
You cannot make false or misleading claims about your services, including guaranteeing specific score increases or deletion of accurate information.
You cannot advise consumers to make false statements to creditors or credit bureaus, or create a 'new' credit identity.
You cannot misrepresent what you can do for consumers or falsely claim affiliations with government agencies or credit bureaus.
Consumers must be given 3 business days after signing to cancel the contract without penalty. The cancellation period cannot be waived.
A separate, dated cancellation form must be provided with the contract that the consumer can use to cancel services.
If a consumer cancels within 3 days, you must refund all payments within 5 business days of receiving the cancellation notice.
Many states require credit repair organizations to register or obtain a license. Check your state's specific requirements.
Some states require a surety bond ranging from $10,000 to $100,000. Verify your state's bonding requirements.
Some states have additional disclosure requirements beyond federal CROA. Research your state's specific laws.
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18 requirements need attention. Non-compliance can result in fines up to $5,000 per violation.
100+ credit repair millionaires use AI automation to stay compliant while scaling.
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What is CROA? The Law That Can Shut You Down
The Credit Repair Organizations Act (CROA) is a federal law enacted in 1996 that regulates the credit repair industry. It's designed to protect consumers from deceptive practices and ensure transparency in credit repair services.
Non-compliance isn't just risky - it's business suicide. The FTC actively pursues violators, and a single lawsuit can cost you everything you've built.
Key CROA Facts:
- Enforced by the FTC and state attorneys general
- Violations can result in civil and criminal penalties
- Consumers can sue for actual damages + punitive damages
- State laws may add additional requirements
CROA Violation Penalties - What's Really at Stake
- • Up to $5,000 per violation
- • Actual damages to consumers
- • Punitive damages (up to treble)
- • Attorney fees and court costs
- • Injunctions and consent orders
- • Fines up to $1,000,000
- • Imprisonment up to 5 years
- • Fraud charges for misrepresentation
- • Wire fraud for deceptive practices
- • Conspiracy charges possible
- • FTC shutdown orders
- • State license revocation
- • Payment processor blacklisting
- • Reputation destruction
- • Class action lawsuits
How AI Automation Keeps You Compliant
Automatic Disclosure Generation
AI generates all required disclosures and consumer rights statements automatically, ensuring nothing is missed.
Cancellation Period Tracking
Automated tracking ensures no services are performed until the 3-day cancellation period expires.
Payment Timing Enforcement
System prevents collecting payment before services are rendered - the #1 CROA violation.
Contract Compliance Templates
Pre-built, attorney-reviewed contract templates include all CROA-required elements and disclosures.
Prohibited Practice Blocks
AI prevents sending dispute letters with false information or making illegal claims to bureaus.
Audit Trail Documentation
Complete records of all client interactions, documents sent, and services performed for legal protection.
Stay Compliant While Scaling to $50K/Month
100+ credit repair millionaires use AI automation to handle compliance while they focus on growth. Join the FREE 5-Day Challenge and learn how to build a compliant, profitable agency from day one.
No credit card required - AI compliance included - 100+ millionaires started here
Frequently Asked Questions
Does CROA apply to all states?
Yes, CROA is a federal law that applies nationwide. However, many states have additional credit repair laws that may impose stricter requirements. Always check both federal CROA and your state's specific regulations.
Can I charge a setup fee before starting work?
No. Under CROA, you cannot charge or receive any payment until services have been fully performed. This is one of the most commonly violated provisions and carries severe penalties.
What counts as "services fully performed"?
Services are considered performed when the specific tasks outlined in your contract are completed. Many agencies structure this as completing a dispute round or achieving a documented result.
Can I guarantee a specific credit score increase?
Absolutely not. Making guarantees about specific results is a CROA violation. You can only promise to perform services - never specific outcomes. This includes guaranteeing deletion of accurate negative items.