SB 548: Fraud and Related Offenses; certain for profit organizations from the term "credit repair services organization"; exempt

Georgia law currently regulates and restricts "credit repair services organizations," businesses that offer to fix or improve people's credit reports for a fee, under the state's fraud statute (O.C.G.A. § 16-9-59). This bill adds a new carve-out: a for-profit credit repair organization, as defined under a federal consumer credit law (15 U.S.C. Section 1679a), would no longer count as a "credit repair services organization" under Georgia law, and so would fall outside those state restrictions, as long as it meets a set of consumer protection conditions. Those conditions include posting a $50,000 bond with the Georgia Attorney General's office that stays in place for a year after the company stops operating in Georgia, giving customers a written contract describing services and monthly costs, providing a disclosure statement about the customer's right to dispute credit report items themselves, and giving a cancellation notice allowing the customer to back out within ten business days.

• Adds a new exemption to Georgia's credit repair fraud law (O.C.G.A. § 16-9-59) so qualifying for-profit companies are not classified as "credit repair services organizations."
• Requires exempt companies to post a $50,000 bond with the Attorney General's office to cover fines or damages from consumer complaints.
• Requires exempt companies to keep that bond active for at least one year after they stop doing business in Georgia.
• Requires exempt companies to give customers a written contract listing services and monthly fees.
• Requires exempt companies to inform customers in writing of their right to dispute credit report errors themselves and their right to claim against the bond.
• Requires exempt companies to provide a cancellation notice letting customers cancel within ten business days or at any later time.

For-profit credit repair companies operating in Georgia, consumers who hire them to dispute or fix credit report problems, and the Georgia Attorney General's office, which would hold the required bonds and handle related enforcement or claims.

Consumers using credit repair companies that qualify for this exemption would get specific written disclosures, a cancellation window, and a bonded fund to draw from if something goes wrong, while those companies would operate outside the state's standard credit repair services organization rules.

• Section 1 amends Code Section 16-9-59 by adding subparagraph (C) to paragraph (2) of subsection (a), creating the exemption for qualifying for-profit credit repair organizations.
• The exemption applies only to organizations meeting the federal definition of a credit repair organization under 15 U.S.C. Section 1679a.
• Qualifying companies must obtain and maintain a $50,000 bond filed with the Attorney General's office, active for at least one year after ceasing Georgia operations.
• Qualifying companies must give customers a written contract, an information statement on dispute rights and bond claims, and a cancellation notice with a ten-day rescission period.
• Section 2 repeals any conflicting laws.

1. 2026-02-24Senate Read and Referred (Senate)
2. 2026-02-20Senate Hopper (Senate)

• Carden Summers (R, SD-013)Primary sponsor
• Jason T. Dickerson (R, SD-021)
• Mike Hodges (R, SD-003)
• Ricky Williams (R, SD-025)
• Shawn Still (R, SD-048)
• Steve Gooch (R, SD-051)
• Russ Goodman (R, SD-008)
• Freddie Sims (D, SD-012)
• Lee Anderson (R, SD-024)
• Marty Harbin (R, SD-016)
• Billy Hickman (R, SD-004)
• Frank Ginn (R, SD-047)
• Brian Strickland (R, SD-042)
• Larry Walker (R, SD-020)

• credit repair
• consumer protection
• fraud law
• Attorney General enforcement