§ 28-4605 — Disclosure; written agreement required.

(a) Prior to the execution of a contract or agreement between a consumer and a consumer credit service organization or prior to the receipt by the consumer credit service organization of any money or other valuable consideration, whichever occurs first, the consumer credit service organization shall provide the consumer with a statement that contains the information required pursuant to subsection (b) of this section. The consumer credit service organization shall maintain for 3 years a copy of the statement signed by the consumer acknowledging receipt of the statement required by subsection (b) of this section.

(b) The information statement shall include the following:

(1) A complete and accurate statement of a consumer’s right to review any file relating to the consumer that is maintained by the consumer credit reporting agency, as provided under the Fair Credit Reporting Act (15 U.S.C. 1681-1681t);

(2) A statement that a consumer may review his or her consumer credit reporting agency’s file at no charge if a request is made to the consumer credit reporting agency within 30 days after receiving notice that credit has been denied;

(3) The approximate amount that the consumer credit service organization will charge a consumer to review his or her consumer credit reporting agency’s file if a request has not been made within 30 days after receiving notice that credit has been denied;

(4) A statement of a consumer’s right to dispute the completeness or accuracy of any information contained in any file on the consumer maintained by a consumer credit service organization as allowed by applicable District or federal law;

(5) A complete and detailed description of the services to be performed by the consumer credit service organization for a consumer and the total amount the consumer will be charged for the services;

(6) A statement that asserts a consumer’s right to recover under a bond or trust account established pursuant to this chapter;

(A) The name and address of the trust account depository and the trustee and the account number of the trust account; or

(B) The name and address of the surety company that issued the bond and the account number and date of the surety bond; and

(8) A statement that asserts a consumer’s right to file a dispute directly with the consumer credit reporting agency in accordance with the provisions of the Fair Credit Reporting Act.

(c) Any contract between a consumer and the consumer credit service organization for the purchase of the services of the consumer credit service organization shall be in writing, dated, signed by the consumer, and include the following:

(1) The terms and conditions of payment, including the total of all the payments to be made by the consumer, regardless of whether the payments are to be made to the consumer credit service organization or to another person;

(2) A full and detailed description of the services to be performed by the consumer credit service organization for the consumer, including:

(A) A statement concerning the specific detrimental information with respect to a consumer’s credit that the credit service organization proposes to remedy;

(B) Any guarantee or promise of full or partial refund; and

(C) The estimated completion date or estimated length of time necessary for completion of the services; and

(3) The address of the consumer credit service organization’s principal place of business and the name and address of the organization’s registered agent authorized to receive service of process.

(d) The contract shall be accompanied by a notice of cancellation that shall include the following:

(1) Notice of a consumer’s right to cancel a contract within 5 calendar days of signing the contract;

(2) A provision that states that a consumer may cancel by personally delivering a copy of a signed and dated cancellation notice or by sending a notice of a cancellation by certified mail, return receipt requested, to the consumer credit service organization; and

(3) A provision that a consumer is entitled to receive a reimbursement within 10 days of receipt of the cancellation notice.

(e) The consumer credit service organization shall provide a consumer with a copy of the information statement, contract, disclosure statement, notice of cancellation, and any other document required by this chapter or the rules issued pursuant to this chapter.

Legislative History

Mar. 8, 1991, D.C. Law 8-236, § 6, 38 DCR 306