Your Credit Repair Rights in Texas
Before you hire anyone, know what the law guarantees you. Three laws protect Texans who use a credit repair company — and they draw a clear line between a legitimate operator and one you should walk away from.
By Alex Serratos, Founder of Clean Path Credit · Updated June 2026
Federal: the Credit Repair Organizations Act (CROA)
CROA (15 U.S.C. §1679 et seq.) is the federal law governing credit repair companies. It gives you four rights that are not optional for any company:
- No advance fees (§404). A company cannot charge or collect any money before the credit repair services are fully performed.
- A written contract + disclosure (§405). You must receive the "Consumer Credit File Rights Under State and Federal Law" notice before you sign, plus a contract that itemizes services, terms, and total cost.
- A 3-day right to cancel (§405). You can cancel for any reason within three business days at no cost.
- No false or misleading claims (§404). No company can guarantee a specific score increase or the removal of accurate information. A guarantee is itself a violation.
Federal: the Fair Credit Reporting Act (FCRA)
The FCRA (15 U.S.C. §1681 et seq.) gives you the dispute rights a credit repair company exercises on your behalf — the same rights you hold yourself:
- Dispute inaccurate items (§611). You can dispute any item you believe is inaccurate, incomplete, or unverifiable. The bureau must investigate, generally within 30 days, and correct or delete anything it cannot verify.
- Dispute with the furnisher (§623). You can also dispute directly with the creditor or collector reporting the item, which has its own obligation to investigate.
- Free credit reports. You're entitled to free reports from each bureau (AnnualCreditReport.com), and additional free reports in certain situations.
- The limit. Accurate, verifiable, and timely information cannot be removed by anyone — that's not a service, it's a false promise.
Texas: Finance Code Chapter 393
On top of federal law, Texas regulates "credit services organizations" (CSOs) under Finance Code Chapter 393. A legitimate Texas credit repair company must:
- Register as a CSO and provide you the statutorily required information statement before any contract.
- Post a surety bond that protects consumers if the company fails to meet its obligations.
- Follow Texas contract rules, which mirror and reinforce CROA's no-advance-fee and cancellation protections.
You can verify a company's registration with the Texas Office of Consumer Credit Commissioner (OCCC) before signing anything.
Verify any company in 5 minutes
- Confirm they charge no advance fees (CROA §404).
- Ask to see the contract and the rights disclosure before signing.
- Confirm the 3-day cancellation right is in writing.
- Verify Texas CSO registration + surety bond with the OCCC.
- Walk away from anyone promising a specific score, guaranteed removals, or selling a "CPN."
For the full walkthrough, see our guide: How to Choose a Credit Repair Company in San Antonio.
If a company breaks the law
CROA gives you a private right to sue for actual damages, punitive damages, and attorney's fees. You can also file complaints with:
- the Federal Trade Commission (reportfraud.ftc.gov),
- the Consumer Financial Protection Bureau (consumerfinance.gov/complaint),
- the Texas OCCC, and
- the Texas Attorney General's consumer protection division.
Credit repair rights — FAQ
Can a credit repair company charge me before doing the work?
No. The federal Credit Repair Organizations Act (CROA §404) prohibits charging or collecting any money for credit repair services before those services are fully performed. A company demanding an upfront fee is violating federal law.
Do I have the right to cancel a credit repair contract?
Yes. CROA §405 gives you three business days to cancel a credit repair contract for any reason, at no cost. The contract must clearly disclose this right, and the company must provide the 'Consumer Credit File Rights Under State and Federal Law' notice before you sign.
Is credit repair legal in Texas?
Yes. Credit repair is legal and regulated. Federally it falls under CROA and the Fair Credit Reporting Act (FCRA). In Texas, credit services organizations (CSOs) must register under Texas Finance Code Chapter 393 and post a surety bond. You can verify registration with the Texas Office of Consumer Credit Commissioner (OCCC).
What can I dispute on my credit report?
Under FCRA §611 you can dispute any item you believe is inaccurate, incomplete, or unverifiable, and the credit bureau must investigate (generally within 30 days). You cannot have accurate, verifiable, and timely information removed — no one can, and any company promising that is making a claim the law prohibits.
What can I do if a credit repair company breaks the law?
CROA gives consumers a private right to sue for actual damages, punitive damages, and attorney's fees. You can also file complaints with the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), the Texas OCCC, and the Texas Attorney General.
Working with someone who respects these rights
Clean Path Credit operates under all three laws — no advance fees, written contract and disclosure, the 3-day cancellation right, and no outcome guarantees. Start with a free 15-minute audit.
This page is general information about consumer rights, not legal advice. For advice about your specific situation, consult a licensed attorney. Statutory citations: CROA (15 U.S.C. §1679 et seq.), FCRA (15 U.S.C. §1681 et seq.), Texas Finance Code Chapter 393.