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How to Start a Credit Repair Business


Cost of starting a credit repair business

Roughly $200

Bond Requirement

$0 - A bond is not required in this state

Potential average profit

$20,000 monthly

Credit Repair Laws in Colorado

There are federal and state laws for Colorado. You should be aware of both.

Federal Laws

The Credit Repair Organizations Act (CROA) is a federal law passed in September 1996 that regulates organizations whose purpose is increasing consumer’s credit score through credit repair. One of the most important things the CROA did is make it illegal for credit repair organizations to make false claims. Don’t worry though, staying compliant is pretty easy after you get familiar with the law! This law is moderated and enforced by the Federal Trade Commission (FTC), so the FTC has the authority to close down any credit repair organizations that are operating outside the parameters of these laws (like fraudulent or illegal activities).

The main sections include mandates that:

  • You can’t misrepresent your services (no false claims about what you will do for the client and definitely no promise of working and then not doing the work).
  • You must provide a written contract between you and the client that the client signs.
  • Your clients have three days to cancel the contract.
  • You can’t charge until services are rendered (most companies will do some initial document processing and then charge the client for the work they have just done).
  • Consumers can sue and get refunded all money paid (plus legal fees and damages)  if the credit repair organization is found to have violated the CROA with that consumer.
  • State laws can’t change or render any of the CROA ineffective.

Simply put, these laws were put in place to protect people from credit repair companies using scammy business practices. As long as you’re not trying to be sketchy and scam people, you should be able to stay compliant easily!

To read the Credit Repair Organizations Act in full, visit the United States House of Representatives’ record of the act here.

State Laws

Colorado has laws that govern how to start (and run!) a credit repair business in Colorado. Here are the relevant regulations and Colorado laws governing credit repair businesses that you need to be aware of:

The Colorado Credit Services Organization Act

CO ST T. 12, Art. 14.5

Title 12. Professions and Occupations

Article 14.5. Colorado Credit Services Organization Act

§ 12-14.5-101. Short title

This article shall be known and may be cited as the "Colorado Credit Services Organization Act".


§ 12-14.5-102. Legislative declaration

(1) The general assembly 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. The extension or receipt of credit has value and should be protected. 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 such consumers.

(b) 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.

(c) The purposes of this article are to provide prospective buyers 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; and

(d) This article shall be construed liberally to achieve these purposes.


§ 12-14.5-103. Definitions

As used in this article, unless the context otherwise requires:

(1) "Buyer" means any individual who is solicited to purchase or who purchases the services of a credit services organization.

(2) "Credit services organization" means any person who, with respect to the extension of credit by others, represents that such person can or will, in return for the payment of money or other valuable consideration by the buyer, improve or attempt to improve a buyer's credit record, history, or rating. The term "credit services organization" does not include the following:

(a) Any nonprofit organization exempt from taxation under section 501(c)(3) of the federal "Internal Revenue Code of 1986"; or

(b) Any person licensed to practice law in this state if such person renders such credit services within the course and scope of said person's practice as an attorney.

(3) "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.

(4) "Person" includes any individual, corporation, partnership, joint venture, or any business entity.

(5) Repealed by Laws 2003, Ch. 295, § 15, eff. July 1, 2003.


§ 12-14.5-104. Prohibited acts

(1) A credit services organization; its salespersons, agents, and representatives; and independent contractors who sell or attempt to sell the services of a credit services organization shall not:

(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 the buyer;

(b) Make, counsel, or advise any buyer to make any statement that is untrue or misleading to a credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit with respect to a buyer's creditworthiness, credit standing, or credit capacity;

(c) Make or use any untrue or misleading representations in the offer or sale of the services of a credit services organization or engage, directly or indirectly, in any act, practice, or course of business that operates or would operate as fraud or deception upon any person in connection with the offer or sale of the services of a credit services organization; or

(d) Make, counsel, or advise any buyer to make a request to a credit reporting agency to verify information contained in a consumer credit report, unless the buyer states in writing to the credit services organization that the buyer believes the information to be verified is incorrect or inaccurate, and states specifically the basis of the inaccuracy or incorrectness of each disputed item of information.


§ 12-14.5-105. Repealed by Laws 2003, Ch. 295, § 17, eff. July 1, 2003


§ 12-14.5-106. Written disclosure required

Before the execution of a contract or agreement between the buyer and a credit services organization or before the receipt by the credit services organization of any money or other valuable consideration, whichever occurs first, the credit services organization shall provide the buyer with a statement in writing containing all the information required by section 12-14.5-107. The credit services organization shall maintain on file for a period of two years an exact copy of the statement, personally signed by the buyer, acknowledging receipt of a copy of the statement.


§ 12-14.5-107. Content of written disclosure

(1) The information statement required pursuant to section 12-14.5-106 shall be printed in at least ten-point type and shall include:

(a) The following statements concerning consumer credit reports and consumer credit agencies:



You have a right to obtain a copy of your credit report from a credit bureau for a small fee. You have a right to dispute inaccurate information by contacting the credit bureau directly. However, you have no right to have accurate information removed from your credit bureau report. Under the federal "Fair Credit Reporting Act", the credit bureau must remove accurate negative information from your report only if it is over 7 years old. Bankruptcy can be reported for 10 years. Even when a debt has been completely repaid, your report can show that it was paid late if that is accurate. You have a right to sue a credit repair company that violates the "Colorado Credit Services Organization Act". This law prohibits deceptive practices by repair companies. The "Colorado Credit Services Organization Act" also gives you a right to cancel your contract for any reason within 5 working days from the date you sign it.

The Federal Trade Commission enforces the federal "Fair Credit Reporting Act". For more information, call or write the Federal Trade Commission. The administrator of the uniform consumer credit code enforces the "Colorado Credit Services Organization Act". For more information, call or write the Colorado attorney general's office."

(b) A complete and detailed description of the services to be performed by the credit services organization for the buyer and the total amount the buyer will have to pay, or become obligated to pay, for the services;

(c) Deleted by Laws 2003, Ch. 295, § 18, eff. July 1, 2003.

(d) Deleted by Laws 2003, Ch. 295, § 18, eff. July 1, 2003.


§ 12-14.5-108. Written contracts required

(1) Each contract between the buyer and a credit services organization for the purchase of the services of the credit services organization shall be in writing, dated, signed by the buyer, and include the following:

(a) A conspicuous statement in bold-faced type, in immediate proximity to the space reserved for the signature of the buyer, as follows: "You, the buyer, may cancel this contract at any time prior to midnight of the fifth working day after the date of the transaction. See the attached notice of cancellation form for an explanation of this right."

(b) The terms and conditions of payment, including the total of all payments to be made by the buyer, whether to the credit services organization or to some other person;

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

(I) All guarantees and all promises of full or partial refunds;

(II) The estimated date by which the services are to be performed, or the estimated length of time for performing the services;

(III) A list of the adverse information appearing on the buyer's credit report that is to be modified and a description of the precise nature of each modification. A copy of the consumer's current credit report issued by a consumer credit reporting agency shall be annexed to the contract with the adverse entries and proposed modifications clearly marked.

(d) The credit services organization's principal business address which shall be the actual office location of the organization and the name and address of its agent in the state authorized to receive service of process.

(2) The contract shall be accompanied by a completed form in duplicate, captioned "Notice of Cancellation", that shall be attached to the contract, shall be easily detachable, and shall contain in bold-faced type the following statement written in the same language as used in the contract:

"Notice of Cancellation


You may cancel this contract, without any penalty or obligation, within five (5) working days from the date the contract is signed.

If you cancel any payment made by you under this contract, it will be returned within ten (10) days following receipt by the seller of your cancellation notice.

To cancel this contract, mail or deliver a signed, 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,


(purchaser's signature) ".

(3) The credit services organization shall give to the buyer a copy of the completed contract and all other documents the credit services organization requires the buyer to sign at the time they are signed.


§ 12-14.5-109. Waivers and exemptions

(1) Any waiver by a buyer of any part of this article is void as against public policy. Any attempt by a credit services organization to have a buyer waive rights given by this article is a violation of this article.

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


§ 12-14.5-110. Criminal penalties and injunctive relief

(1) Any person who violates any provision of this article commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501, C.R.S. Violating any provision of this article with respect to any buyer shall constitute a class 1 public nuisance subject to the provisions of part 3 of article 13 of title 16, C.R.S.

(2) The administrator of the uniform consumer credit code, designated pursuant to section 5-6-103, C.R.S., or the district attorney of any judicial district may maintain an action to enjoin violations of this article.

(3) Costs and reasonable attorney fees shall be awarded to the administrator of the uniform consumer credit code or a district attorney in all injunctive actions where the administrator of the uniform consumer credit code or district attorney successfully enforces this article.


§ 12-14.5-110.5. Powers of administrator of the uniform consumer credit code and district attorney--subpoenas--hearings

(1) When the administrator of the uniform consumer credit code or district attorney has cause to believe that any person has violated or is violating any provision of this article, he may, in addition to the other powers conferred upon him by this article:

(a) Request such person to file a statement or report in writing under oath or otherwise, on forms prescribed by him, as to all facts and circumstances concerning the sale or advertisement of goods, property, or services by any credit services organization and any other data and information he deems necessary;

(b) Prior to the filing of a complaint, issue subpoenas to require the attendance of witnesses or the production of documents, conduct hearings in aid of any investigation or inquiry, administer oaths, and examine under oath any person in connection with the sale or advertisement of goods, property, or services by any credit services organization.

(2) Service of any notice or subpoena may be made in the manner prescribed by law or under the Colorado rules of civil procedure.


§ 12-14.5-111. Damages

(1) Any buyer injured by a violation of this article or by a credit services organization's breach of contract subject to this article may maintain an action in a court of competent jurisdiction for recovery of actual damages, plus cost of suit and reasonable attorney fees. In case of an action brought by a buyer, actual damages shall not be less than the amount paid by the buyer to the credit services organization.

(2) In the event of a willful violation by a credit services organization of this article or of a contract subject to this article, a person who is injured thereby shall be awarded, in addition to the damages allowable under subsection (1) of this section, an additional amount equal to twice the actual damages awarded under subsection (1) of this section.

(3) Repealed by Laws 2003, Ch. 295, § 19, eff. July 1, 2003.


§ 12-14.5-112. Aiding or assisting violation

Any individual who, as a director, officer, partner, member, salesperson, agent, or representative of a credit services organization which violates this article, assists or aids, directly or indirectly, in such violation shall be responsible therefor and subject to the criminal penalties, injunctive relief, and damages provided for in section 12-14.5-111 and this section.


§ 12-14.5-113. Remedies cumulative

The remedies provided for in this article are cumulative and in addition to any other procedures or remedies for any violation or conduct provided for in any other law.


Current through laws effective April 26, 2007 including Chapters 1-7, 11-16, 18-21, 24, 25, 27, 29, 30, 33, 38, 41, 43, 45-48, 50, 51, 54, 55, 57-62,64, 66, 67, 69, 72-74, 76-78, 80-82, 85, 89-91, 93, 96, 99, 104, 109, 111, 112, 120,121, 126, 128, 131, 135, 138, 140, 143, 145, 146, 148, 149, 151-155, 160, 162-164, 169, 170, 173, 175-179, as well as Ch. 56, effective May 29, 2007.

(C) 2007 Thomson 


Case Law
I identified no significant cases construing the Act.

For additional information about starting a credit repair company in [STATE] contact your state or an attorney.

Requirements for Surety Bond for Credit Repair Business in Colorado


Statute of Limitation on Debt in Colorado

Colorado credit repair businesses must be knowledgeable about the statute of limitation governing debt in Colorado because this will guide your business decisions and enable you to best help your clients. The statue of limitations essentially limits the time that a creditor can legally sue a consumer for payments for a debt. Statutes of Limitation (SOL) do vary by state and debt type. In general, it is usually between 3 to 6 years, but sometimes longer.

Learn more about the statute of limitation laws for your state

Check SOL by State

Colorado Credit Repair License

We’re not aware of a state requirement for a “credit repair license” to operate a credit repair business in Colorado. However, many find getting training and a certification useful because it:

  • Conveys competence to prospective clients
  • Helps gain the trust of clients
  • Arms you with the training and tools you need to help clients and build a recurring revenue model

The American Credit Repair Academy http://try.creditrepaircloud.com/academy/; offers training, resources, and credit repair certification

Market Potential for a Colorado Credit Repair Business

Market Temperature:

0 1 2 3 4 5 6 7 8 9 10
Percentage Of Credit Reports That Have Errors


Total Number of People Living In Colorado

5.54 Million

Average Debt on Credit Report


Percent of Population With Credit Scores Below 700


Percent of home buyers getting a mortgage for their home purchase


How to Profit with a Credit Repair Business in Colorado

1. Start

  • Get a powerful CRM that handles your business for you
  • Train and learn about the business
  • Create a professional website
  • Market your business to new clients

2. Run

Use software to automate the tasks of a credit repair business in Colorado:

  • Import clients’ credit reports
  • Generate dispute letters in seconds
  • Manage recurring payments and affiliate programs

3. Grow

  • Capture new lead and close more deals
  • Use the data you gather to scale your business
  • Automate more functions: signature capture, payment integrations, meeting scheduling, and more

All of this is available with Credit Repair Cloud


Frequently asked questions

How do Colorado credit repair businesses check name availability?
Credit repair businesses looking to operate in Colorado can ensure their desired business name is available by searching the Colorado Business Database. This may seem like a small step, but it is important to be sure that the business name you want on your marketing materials, your website, and your legal documents is up for grabs before you start your business.
What resources exist for credit repair businesses starting in Colorado?
Coloradans are privy to what its state government calls “the most comprehensive business start up guide in the nation.” The state also provides specific guide for financial services businesses operating in Colorado, a wonderful resource for credit repair companies.
How do I know that my credit repair business is ready to operate in Colorado?
Before opening up shop in Colorado, or any state, you need to be sure that you have gotten all the administrative tasks done. Register with the Colorado Secretary of State, have a sales Tax ID number for your business (this is different than your personal Tax ID number), and ensure the remainder of the steps are complete by taking this Colorado state business quiz for startup readiness.

What Other Credit Repair Businesses Say


Laredo, TX

We have a tax preparation business. My partner and I decided to branch out into credit repair. Credit Repair Cloud now helps us to build our customer base for the tax business. It is a wonderful tool for lead generation. Credit-Aid provides superior customer service. You have gained a customer for life!


Houston, TX

I love your system! This was the best investment ever and the customer service with Credit Repair Cloud is excellent. You have a very good team. I wish companies were just like you. I've tried everybody out there and your system is very powerful. Thank you for helping me. God bless you!

Join our next free training!

How to Quickly Start a Profitable Credit Repair Business


Secret 1

How Credit Repair is the LOWEST COST & MOST PROFITABLE business you can launch. . .

Secret 2

How our step-by-step “Dispute Process Blueprint” gives you EASY Credit Repair Results without being a credit expert. . .

Secret 3

How our easy method gets you UNLIMITED Clients without paying for advertising. . .

Legal disclaimer: Our software products and resources offer credit information, not legal advice. We make every effort to ensure the accuracy of the information and to clearly explain your options. However, we do not provide legal advice (i.e.; the application of the law to your individual circumstances). For legal advice, please consult an attorney, your city or your state.