SB548: SB548 Fraud and Related Offenses; certain for profit organizations from the term "credit repair services organization"; exempt

26 LC 62 0378 Senate Bill 548 By: Senators Summers of the 13th, Dickerson of the 21st, Hodges of the 3rd, Williams of the 25th, Still of the 48th and others A BILL TO BE ENTITLED AN ACT To amend Article 4 of Chapter 9 of Title 16 of the Official Cod e of Georgia Annotated,1 relating to fraud and related offenses, so as to exempt certain for profit organizations from2 the term "credit repair services organization"; to provide for related matters; to repeal3 conflicting laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Article 4 of Chapter 9 of Title 16 of the Official Code of Georgia Annotated, relating to fraud7 and related offenses, is amended by adding a new subparagraph t o paragraph (2) of8 subsection (a) of Code Section 16-9-59, relating to operation o f credit repair services9 organization, as follows:10 "(C) 'Credit repair services organization' also does not includ e any credit repair11 organization, as defined by 15 U.S.C. Section 1679a, that complies with the following12 consumer protections:13 (i) Obtains a bond in the amount of $50,000.00, which shall be filed with the office14 of the Attorney General pursuant to rules and regulations promu lgated by such15 department and shall remain in place for at least one year afte r the credit repair16 services organization has ceased all activities in this state, and which shall be used to17 S. B. 548 - 1 - 26 LC 62 0378 cover administrative fines or civil damages suffered by any buy er or through any18 enforcement action; and19 (ii) Provides:20 (I) A written contract to the buyer setting out the services such credit repair services21 organization provides and the amount that will be due each month for such services;22 (II) An information statement informing the buyer of the buyer's right to challenge23 and dispute items on a credit report on his or her own; stating that the credit repair24 services organization will only challenge or dispute items that the buyer affirms are25 either unfair, inaccurate, or unsubstantiated; and informing the buyer of the right to26 proceed against the bond along with the name and address of the bond surety; and27 (III) A notice of cancellation that informs the buyer of the r ight to rescind the28 agreement within ten business days after entering into the contract and the right to29 cancel services at any time, along with a preprinted form conta ining the mailing30 address of the credit repair services organization."31 SECTION 2.32 All laws and parts of laws in conflict with this Act are repealed. 33 S. B. 548 - 2 -