What is the CROA and who does it apply to?

The Credit Repair Organizations Act (CROA, 15 U.S.C. Section 1679) is a federal law regulating credit repair services. It applies to any person or organization that offers to improve consumer credit records for compensation. All 50 states have additional regulations on top of federal CROA requirements.

Which states require surety bonds for credit repair?

Approximately 15 states require surety bonds for credit repair organizations. California has the highest bond requirement at $100K (tiered by revenue). Other bond states include Georgia ($25K), Utah ($10K), Nevada ($10K), and Colorado ($5K). Some states like Texas and Maryland require registration but no bond.

How much does a credit repair surety bond cost?

Bond premiums typically range from 1-15% of the bond amount annually, based on your credit score. With good credit (700+), a $10K bond costs approximately $100-300/year. California Tier 1 ($15K bond) costs approximately $225-450/year in premiums.

What are the penalties for operating without CROA compliance?

Penalties vary by state: California fines up to $5,000 per violation, Florida up to $10,000 per violation, and federal CROA violations can result in actual damages, punitive damages up to $1,000 per violation, and attorney fees. Some states also impose criminal penalties including misdemeanor charges.

Do I need an attorney to start a credit repair business?

Most states do not require attorney involvement. However, Maryland requires attorney supervision for credit repair services. Some states like Oregon require registered agents. Attorney-supervised or attorney-owned businesses may qualify for exemptions from certain bond requirements in some states.

50 STATES + D.C. LIVE

50-State CROA ComplianceCA: $100K Bond | TX: FREE

80% of credit repair startups fail on compliance. See your exact state requirements in 90 seconds -- bonds, fines, registration, and launch timeline.

80%

STARTUPS FAIL HERE

BOND STATES

$100K

CA MAXIMUM

HIGH-RISK STATES

Your State CROA Requirements

6 inputs. 90 seconds. Full compliance roadmap.

SELECT STATE

REVENUE TIER

Tier 2 ($75K-$150K) ($125K)

ACTIVE CLIENTS

BUSINESS AGE

2 Years

COMPLAINTS

ATTORNEY STATUS

How It Works

Select Your State

Choose from all 50 states + D.C. to see specific CROA requirements including bond amounts, registration bodies, and compliance deadlines.

Enter Business Details

Input your projected revenue tier, client count, business age, complaint history, and attorney status for personalized compliance analysis.

Get Your Compliance Roadmap

Receive instant results with bond requirements, premium estimates, registration steps, fine risks, and a downloadable compliance checklist.

Frequently Asked Questions

Educational use only. Not financial/legal advice.|Affiliate Disclosure | Full Disclaimer

50-State CROA ComplianceCA: $100K Bond | TX: FREE

Your State CROA Requirements

How It Works

Select Your State

Enter Business Details

Get Your Compliance Roadmap

Frequently Asked Questions

Related Tools

CROA Bond Calculator

Startup Checklist Generator

CROA Compliance Checker

Client ROI Calculator