The Credit Repair Organizations Act [CROA] Law and Legal Definition

The Credit Repair Organizations Act is a federal law defines how credit repair organizations are allowed to operate. Violations of CROA are treated as a violation of the Federal Trade Commission Act.

The CROA aims to:

a. ensure that prospective buyers of the services of credit repair organizations are provided with the information necessary to make an informed decision regarding the purchase of such services; and

b. to protect the public from unfair or deceptive advertising and business practices by credit repair organizations. [15 USCS § 1679].

The CROA bars any person from making or counseling any consumer to make any untrue or misleading statement whose intended effect is to alter the consumer's identification to hide accurate credit information. [15 USCS § 1679b].