Contract requirements, cancellation clause
When someone hires a credit repair company, the deal must be in writing and signed. The contract has to clearly show the payment terms, exactly what services the company will do, how long it will take (no more than 180 days), and the company's business address. The company must also attach two tear-off cancellation notices and hand over a copy of the signed contract right away. If the company breaks any part of this agreement, it is breaking the law.
407.642. Contract requirements, clause. — 1. Each contract between the buyer and a for the purchase of the s of the credit services organization must be in writing, dated, ed by the buyer and must include:
(1) A statement in type that is boldfaced, capitalized, underlined, or otherwise set out from surrounding written so as to be , in immediate proximity to the space reserved for the signature of the buyer, as follows:
(2) 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 another person;
(3) 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 length of time, not to exceed one hundred eighty days, for performing the services; and
(4) The address of the credit services organization's and the name and address of its in the state to receive .
2. The contract must have attached two easily detachable copies of a . The notice must be in boldfaced type and in the following form:
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.
4. The by a credit services organization of a contract under this section, or of any obligation arising from a contract under this section, is a violation of sections 407.635 to 407.644.
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Source & history notes
(L. 1991 S.B. 112 § 7)
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