LOGIN
TRY FREE

CREATE YOUR STARTER ACCOUNT

Your first 30 days are FREE...

Upgrade, downgrade or cancel anytime.

How to Start a Credit Repair Business

in

icon-starting
Cost of starting a credit repair business

Roughly $200

icon-starting
Cost to obtain the required $10,000 bond:

Roughly $200

icon-starting
Potential average profit

$20,000 monthly

Credit Repair Laws in Utah

There are federal and state laws for Utah. 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

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

Utah State Laws

UT ST T. 13, Ch. 21, Refs  

Chapter 21. Credit Services Organizations Act

§ 13-21-1. Short title

This chapter is known as the "Credit Services Organizations Act."

§ 13-21-2. Definitions--Exemptions

<Text of section effective until July 1, 2007>

As used in this chapter:

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

(2) "Credit reporting agency" means a person who, for a monetary fee, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third persons.

(3)(a) "Credit services organization" means a person who, with respect to the extension of credit by others, sells, provides, or performs, or represents that the person can or will sell, provide, or perform, in return for the payment of money or other valuable consideration any of the following services: 
(i) improving a buyer's credit record, history, or rating;
(ii) obtaining an extension of credit for a buyer; 
(iii) providing advice, assistance, instruction, or instructional materials to a buyer with regard to either Subsection (3)(a)(i) or (ii); 
(iv) providing debt reduction or debt management plans; 
(v) representing itself or its employee as a debt professional or credit counselor; or 
(vi) negotiating with a buyer's creditor. 
(b) "Credit services organization" does not include: 
(i) a person authorized to make loans or extensions of credit under the laws of this state or the United States who is subject to regulation and supervision by this state or the United States and who derives at least 35% of the person's income from making loans and extensions of credit; 
(ii) a depository institution: 
(A) as defined in Section 7-1-103; or 
(B) that is regulated or supervised by the Federal Deposit Insurance Corporation or the National Credit Union Administration; 
(iii) a person licensed as a real estate broker by this state if the person is acting within the course and scope of that license; 
(iv) a person licensed to practice law in this state if: 
(A) the person renders the services described in Subsection (3)(a) within the course and scope of the person's practice as an attorney; and 
(B) the services described in Subsection (3)(a) are incidental to the person's practice as an attorney; 
(v) a broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission if the broker-dealer is acting within the course and scope of that regulation; or 
(vi) a credit reporting agency if the services described in Subsection (3)(a) are incidental to the credit reporting agency's services.

(4) "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.

<For text of section effective July 1, 2007, see § 13-21-2, post>

§ 13-21-2. Definitions--Exemptions

<Text effective July 1, 2007>

As used in this chapter:

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

(2) "Credit reporting agency" means a person who, for a monetary fee, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third persons.

(3)(a) "Credit services organization" means a person who, with respect to the extension of credit by others, sells, provides, or performs, or represents that the person can or will sell, provide, or perform, in return for the payment of money or other valuable consideration any of the following services: 
(i) improving a buyer's credit record, history, or rating; or
(ii) providing advice, assistance, instruction, or instructional materials to a buyer with regard to Subsection (3)(a)(i). 
(b) "Credit services organization" does not include: 
(i) a person authorized to make loans or extensions of credit under the laws of this state or the United States who is subject to regulation and supervision by this state or the United States and who derives at least 35% of the person's income from making loans and extensions of credit; 
(ii) a depository institution: 
(A) as defined in Section 7-1-103; or 
(B) that is regulated or supervised by the Federal Deposit Insurance Corporation or the National Credit Union Administration; 
(iii) a person licensed as a real estate broker by this state if the person is acting within the course and scope of that license; 
(iv) a person licensed to practice law in this state if: 
(A) the person renders the services described in Subsection (3)(a) within the course and scope of the person's practice as an attorney; and 
(B) the services described in Subsection (3)(a) are incidental to the person's practice as an attorney; 
(v) a broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission if the broker-dealer is acting within the course and scope of that regulation; or 
(vi) a credit reporting agency if the services described in Subsection (3)(a) are incidental to the credit reporting agency's services.

(4) "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.

<For text of section effective until July 1, 2007, see § 13-21-2, ante>

§ 13-21-3. Credit services organizations--Prohibitions

(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 may not do any of the following: 
(a) conduct any business regulated by this chapter without first:
(i) securing a certificate of registration from the division; and 
(ii) unless exempted under Section 13-21-4, posting a bond, letter of credit, or certificate of deposit with the division in the amount of $100,000; 
(b) make a false statement, or fail to state a material fact, in connection with an application for registration with the division; 
(c) 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; 
(d) dispute or challenge, or assist a person in disputing or challenging an entry in a credit report prepared by a consumer reporting agency without a factual basis for believing and obtaining a written statement for each entry from the person stating that that person believes that the entry contains a material error or omission, outdated information, inaccurate information, or unverifiable information; 
(e) charge or receive any money or other valuable consideration solely for referral of the buyer to a retail seller who will or may extend credit to the buyer, if the credit that is or will be extended to the buyer is upon substantially the same terms as those available to the general public; 
(f) make, or counsel or advise any buyer to make, any statement that is untrue or misleading and that is known, or that by the exercise of reasonable care should be known, to be 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; 
(g) 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; and 
(h) transact any business as a credit services organization, as defined in Section 13-21-2, without first having registered with the division by paying an annual fee set pursuant to Section 63-38-3.2 and filing proof that it has obtained a bond or letter of credit as required by Subsection (1).

(2)(a) A bond, letter of credit from a Utah depository, or certificate of deposit posted with the division shall be used to cover the losses of any person arising from a violation of this chapter by the posting credit services organization. A bond, letter of credit, or certificate of deposit may also be used to satisfy administrative fines and civil damages arising from any enforcement action against the posting credit service organization. 
(b) A bond, letter of credit, or certificate of deposit shall remain in force:
(i) until replaced by a bond, letter of credit, or certificate of deposit of identical or superior coverage; or 
(ii) for one year after the credit servicing organization notifies the division in writing that it has ceased all activities regulated by this chapter.

§ 13-21-3.5. Registration and suspension of registration

(1) A credit services organization shall file an application for registration with the division before engaging in any activity regulated by this chapter. The application shall include: 
(a) the name, complete address, and telephone number of the organization;
(b) the name of any person who owns or controls more than 5% of the organization, either directly or through another person or entity; 
(c) the name of any individual who is responsible for the day-to-day operation of the organization; 
(d)(i) the case title, docket number, the names and addresses of all parties, and a detailed explanation of any administrative, civil, or criminal action in which the organization or any person identified in Subsection (1)(b) or (c) is a party to an administrative, civil, or criminal action that arose in this state or any other jurisdiction involving the offer to provide or the provision of services described in Section 13-21-2(3)(a); or 
(ii) a notarized statement of the credit services organization's chief executive officer or principal that neither the organization nor any person identified in Subsection (1)(b) or (c) is a party to any administrative, civil, or criminal action described in Subsection (1)(d)(i); 
(e) a detailed outline of the organization's credit services program to be offered in this state, including two copies of any contract, form, sales literature, or other relevant document that will be used by the organization; and 
(f) a reasonable registration fee to be determined by the division.

(2) The division may deny, suspend, or revoke a registration under this chapter if: 
(a) a credit services organization has engaged, or is engaging in a violation of this chapter; or
(b) a person described in Subsection (1)(b) or (c) has been found in an administrative, civil, or criminal action in any jurisdiction to have violated a law relating to the offer to provide or provision of the types of services described in Subsection 13-21-2(3)(a).

§ 13-21-4. Bond, letter of credit, or certificate of deposit--Not required of agent if obtained by organization

(1) If a credit services organization has obtained a bond, letter of credit, or certificate of deposit as set forth in Subsection 13-21-3(1) a salesperson, agent, or representative who sells the services of that organization is not required to post his own separate bond, letter of credit, or certificate of deposit.

(2) As used in this section, a person is not a salesperson, agent, or representative of a credit services organization unless: 
(a) the person does business under the same name as the credit services organization; or
(b) the credit services organization and the issuer of the bond or letter of credit certify in writing that the bond or letter of credit covers the person.

§ 13-21-5. Written information statement 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 13-21-6. 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.

§ 13-21-6. Contents of statement

The information statement required under Section 13-21-5 shall include all of the following:

(1) a complete and accurate statement of the buyer's right to review any file on the buyer maintained by any credit reporting agency, as provided under 15 U.S.C. Sec. 1681 et seq., as amended, the Fair Credit Reporting Act;

(2) a statement that a review of the file on the buyer will be conducted free of charge by the credit reporting agency that issued a report upon which a credit denial was based, if requested within 30 days of the buyer receiving a notice of a denial of credit;

(3) the approximate price the buyer will be charged by a credit reporting agency for a copy of the file on the buyer;

(4) a complete and accurate statement of the buyer's right to dispute the completeness or accuracy of any item contained in any file on the buyer maintained by any credit reporting agency;

(5) 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;

(6) a statement asserting the buyer's right to proceed against the bond or trust account required under Section 13-21-3; and

(7) the name and address of the surety company which issued the bond, or the name and address of the depository and the trustee and the account number of the trust account.

§ 13-21-7. Written contracts required--Contents--Notice of cancellation of contract

(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 all of the following: 
(a) a conspicuous statement in bold 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 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 all guarantees and all promises of full or partial refunds, and the estimated date by which the services are to be performed, or estimated length of time for performing the services; 
(d) the credit services organization's principal business address and the name and address of its agent, in Utah , authorized to receive service of process.

(2) The contract shall be accompanied by a completed form in duplicate, captioned "Notice of Cancellation," which shall be attached to the contract and easily detachable, and which shall contain in bold 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 days from the date the contract is signed.
If you cancel, any payment made by you under this contract will be
returned within 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.
____________________________ (date)
________________________________________
(purchaser's signature)"

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.

§ 13-21-8. Burden of proving exception--Penalties--Court's criminal and equitable jurisdiction--Prosecution

(1)(a) Any waiver by a buyer of any part of this chapter is void. 
(b) Any attempt by a credit services organization to have a buyer waive rights given by this chapter is a violation of this chapter.

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

(3)(a) Any person who violates this chapter is guilty of a class A misdemeanor. 
(b) Any district court of this state has jurisdiction to restrain and enjoin the violation of this chapter.

(4) The attorney general, any county attorney, any district attorney, or any city attorney may prosecute misdemeanor actions or institute injunctive or civil proceedings, or both, under this chapter.

(5) The remedies, duties, prohibitions, and penalties of this chapter are not exclusive and are in addition to all other causes of action, remedies, and penalties provided by law.

(6)(a) In addition to other penalties under this section, the division director may issue a cease and desist order and impose an administrative fine of up to $2,500 for each violation of this chapter. 
(b) All money received through administrative fines imposed under this section shall be deposited in the Consumer Protection Education and Training Fund created by Section 13-2-8.

§ 13-21-9. Damages--Punitive damages--Attorney's fees and costs--Remedies

(1) Any buyer injured by a violation of this chapter may bring any action for recovery of damages. Judgment shall be entered for actual damages, but in no case less than the amount paid by the buyer to the credit services organization, plus reasonable attorneys' fees and costs. An award may also be entered for punitive damages.

(2) The remedies provided under this chapter are in addition to any other procedures or remedies for any violation or conduct provided for in any other law.

(3) The Division of Consumer Protection may maintain an action for damages or injunctive relief on behalf of itself or any other person to enforce compliance with this chapter. Any judgment granted in favor of the division shall include, in addition to any other monetary award or injunctive relief, an award of reasonable attorneys' fees, court costs, and costs of investigation.

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 Utah

A few states do require a surety bond. (At the time of this writing most states do not require a bond.) If your state does require a bond, you are required to secure you bond from your same state.

Bonds are a minimal expense (usually under a few hundred dollars) because you order them from a bond service and pay only a small fraction of the bond yourself. A Credit Repair Services Organization Bond protects you. For more information about Credit Repair Services Organization Bonds, contact BondsExpress.

If you get your bond through a bonds service, the amount you pay will generally be 2-3% of the total bond amount (this cost varies depending upon your credit).

Statute of Limitation on Debt in Utah

Utah credit repair businesses must be knowledgeable about the statute of limitation governing debt in Utah 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.

To learn more about the statute of limitation laws for your state, click here.

Utah Credit Repair License

We’re not aware of a state requirement for a “credit repair license” to operate a credit repair business in Utah. 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 Utah Credit Repair Business

Market Temperature:

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

79%

icon-starting
Total Number of People Living In Utah

3.051 million

icon-starting
Average Debt on Credit Report

$5,700

icon-starting
Percent of Population With Credit Scores Below 700

44.3%

icon-starting
Percent of home buyers getting a mortgage for their home purchase

88%

How to Profit with a Credit Repair Business in Utah

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 Utah:

  • 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

TRY IT FREE!

Frequently asked questions

Do I need to register my credit repair company with each department in Utah?
You will need to register your credit repair company with each specific government department in Utah. To assist with this process, Utah created OneStop. This online business registration portal allows you to complete all your business registrations with one account.
When can I start accepting clients for my credit repair business in Utah?
Once you have registered your credit repair business with the correct government departments in Utah, you will still need to get a certificate of registration from the Division of Consumer Protection as well as a surety bond before conducting any business. You can find the needed forms on the Division of Consumer Protection website, or file online here.
How can a Business Resource Center help me start my credit repair business in Utah?
In 2008, the Utah State Legislature signed into law the Utah Business Resource Centers Act.  Business Resource Centers (BRC) are an excellent resource for both new and existing credit repair businesses, and provide many services that can help your business flourish. Services include education, resources, and networking. The Utah Governor's’ Office of Economic Development has a list of Business Resource Centers located regionally throughout Utah.

What Other Credit Repair Businesses Say

ROB Y

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!
testimonials-bob.jpg

MANAL MASSIS

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!
MANAL MASSIS

Join our next free training!

How to Quickly Start a Profitable Credit Repair Business

MINUTESSECONDS
secret1.png

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.