If you want to run a profitable credit repair business, you need to understand the industry rules and regulations to ensure compliance. Just like any other industry, there are both federal and state laws and every state is different. Some states have specific requirements for bonding, licensing, registration, and contract disclosure. Additionally, many states have specific requirements on how much you can charge consumers and when you can charge them. It is important that you read and understand the rules so you can safely run your business and make compliant decisions.
None of the information on this page is legal advice, it is public information that we assembled to help save you time. Rules and regulations do change and we have made every effort to ensure the accuracy of the information listed on this page; however, it is ultimately your responsibility to make sure the information you use to make business or legal decisions are accurate. We highly recommend you do your own additional research and seek assistance from a competent legal professional for any decisions you make.
Some states have state laws regulating credit repair organizations in addition to the federal laws. You should
become familiar with the state laws for each state within which your credit repair organization operates and
always know where your consumers reside to make sure you comply with the state laws of where your
consumer is located in. If you solicit or service consumers outside the state where you reside, you must
comply with federal laws in addition to state laws. You, and not CRC, will have sole responsibility to review your marketing and collection efforts relating to services you provide. Also you, and not CRC, must confirm that your marketing and receipt of fees are compliant with applicable state and federal laws.
There are both Federal and State laws that regulate the Credit Repair Industry. This section covers some of
the applicable federal laws, such as the Credit Repair Organization Act and the Telemarketing Sales Rule. For more information, consult the Federal Trade Commission.
The Credit Repair Organization Act is title IV of the Consumer Credit Protection Act, which was signed into Law in 1996 by President Bill Clinton. It’s a federal law put in place to protect consumers from dishonest credit repair companies. The law’s intent is to prevent credit repair companies from taking advantage of consumers and help consumers make informed decisions when hiring a credit repair company.
Before a credit repair company can perform any services, they are required to provide a contract signed by the consumer and the contract must include the following:
You, and not CRC, will have sole responsibility to review your marketing and collection efforts relating to the services you provide. Also, you, and not CRC, must confirm that your marketing and receipt of fees are compliant with applicable state and federal laws.
If you solicit from or service customers outside of the state where you reside, you must comply with the Telemarketing Sales Rule (“TSR”). For more information, regarding the TSR you can visit the FTC’s website: https://www.ftc.gov/business-guidance/resources/complying-telemarketing-sales-rule. CRC’s statements are not legal advice. You should seek legal advice to ensure compliance.
Credit Repair Cloud requires that all customers comply with the TSR and any other applicable laws and regulations to continue using its software.
Every state has different rules, regulations and requirements. If you are providing services to consumers in your home state, where your business is based, you must follow the law for your state. If you are providing services to any consumers in other states, you must also follow the laws for the states your clients live in. For those of you that are just getting started in the credit repair business, there is no need to worry about states other than your own - there are plenty of consumers that need your help in your home state; however, if you decide to branch out into other states, please remember that the rules apply to the state the consumer resides. So in other words, you must follow the law for the state the consumer lives in. In addition, remember that any time you are servicing out-of-state consumers, you must adhere to federal laws in addition to state laws.
Are there state laws for credit repair in Idaho?
Yes, under the Idaho Collection Agency Act.
What are the specific statutes?
Who is the authority for credit repair in Idaho?
The Idaho Department of Finance:
Laws often change, so make sure you do your own research and do not rely on this information to be 100% accurate.
What is a surety bond?
A surety bond is a three-party agreement that legally binds your credit repair company (who needs the bond), the state (who requires the bond) and a surety company that sells the bond. If you fail to perform or cause consumers harm, the bond will cover resulting damages or losses.
Is a surety bond required in Idaho?
Idaho does require a surety bond. Additionally, the bond shall be maintained for three years following the
date on which the credit services organization ceases to conduct business in Idaho.
See ID. Code. §26-2232.
What is the bond requirement amount in Idaho?
The initial required bond amount is $15,000. The amount of the bond upon renewal shall be $15,000, or
two times the average monthly net collections for the previous year, whichever sum is greater, up to a
maximum of $100,000.
How much do bonds cost?
Surety bonds typically cost between 1% and 10% of the face value based on the owner's personal credit. For example: If the face value of the bond is $10,000; it may cost as low as $100 per year or as high as $1,000 per year.
Where can I obtain a bond?
There are many insurance companies that offer surety bonds. Do a quick google search for “Credit Repair Surety Bond” and you will find many. It’s always a good idea to compare rates.
Does Idaho require a credit repair license?
Yes, Idaho requires a license specifically for credit repair; however depending on your city and county you may also be required to obtain a local tax receipt, permit or local professional license. Most counties and cities in the state require business licenses or permits for all businesses, including one-person, home-based operations. If you are conducting business within a city’s limits, check with your city government to determine licensing requirements. If you’re in an unincorporated area, check with the county government. If you have an office in more than one city or county, you might need to get a license for each one. We made every attempt to ensure the information posted is accurate; however, because the state may change its policies, procedures, or requirements, we are not responsible for any discrepancies. We strongly encourage you to do your own research or hire a competent legal professional prior to making any business or legal decisions.
Idaho Department of Finance
Consumer Finance Bureau
P.O. Box 83720, Boise, ID 83720-0031
Federal and state governments call credit repair companies “Credit Service Organizations”. The acronym “C.S.O.” is an abbreviation for the term. Some states require CSO’s to register with one or more of the specific state agencies to know exactly who is practicing credit repair within their state. Some states publicly post a list of CSO’s online that have registered so consumers can check the listing to confirm a credit repair company is registered or not. All the information below is public information found on the states website. We made every attempt to ensure the information posted is accurate; however, because the state may change its policies, procedures or requirements, we are not responsible for any discrepancies. We strongly encourage you to do your own research or hire a competent legal professional prior to making any business or legal decisions.
Is CSO registration required in Idaho?
Yes, Idaho requires CSO registration with the Idaho Department of Finance, Consumer Finance Bureau.
What is the process and fee to register as a CSO in Idaho?
The registration fee is $150 and $20 per person. See ID. Code. §26-2224. For additional information regarding the filing process, consult with the Idaho Department of Finance, Consumer Finance Bureau and the Idaho Secretary of State.
Under CROA, you are required to provide a contract to consumers when offering credit repair services. Additionally, if you provide credit repair services to consumers in more than one state, you must adhere to other applicable federal laws, such as the Telemarketing Sales Rule. On a state level, each state has different requirements for many different aspects of how you conduct business, including but not limited to how much you can charge, when you can charge, how long you can charge, and when clients can cancel services or receive a refund. Some states require you to disclose this information in the contracts. This section can help you understand how you may choose to customize your contracts. All the information below is public information found on the states website. We made every attempt to ensure the information posted is accurate; however, because the state may change its policies, procedures, or requirements, we are not responsible for any discrepancies. We strongly encourage you to do your own research or hire a competent legal professional prior to making any business or legal decisions.
Does Idaho have specific contract requirements?
Idaho currently does not have specific contract requirements. However, you should consult with the Idaho
Attorney General’s Office and the Idaho Department of Finance, Consumer Finance Bureau to obtain the
most recent information.
What is the statute specific to Idaho credit repair contracts?
Does Idaho have a Term requirement?
Does Idaho have a Cancellation requirement?
Does Idaho have a Refund requirement?
Does Idaho require specific Disclosures in their contract?
Use software to automate the tasks of a credit repair business in Idaho:
All of this is available with Credit Repair Cloud
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