Division 3. Obligations
Part 4. Obligations Arising from
Particular Transactions
Title 1.6E. Credit Services
§ 1789.10. Short title
This title shall be known and may be cited as the "Credit
Services Act of 1984."
§ 1789.11. Legislative findings and declarations; purposes; liberal
construction
The Legislature finds and declares that:
(a) The ability to obtain and use credit has become of great
importance to consumers, who have a vital interest in establishing and
maintaining their credit worthiness and credit standing. As a result, consumers
who have experienced credit problems may seek assistance from credit services
organizations which offer to obtain credit or improve the credit standing of
such consumers.
Certain advertising and business practices of some credit services
organizations have worked a financial hardship upon the people of this state,
often those who are of limited economic means and inexperienced in credit
matters. Credit services organizations have significant impact upon the economy
and well-being of this state and its people.
(b) The purposes of this title are to provide prospective buyers
of services of credit services organizations with the information necessary to
make an intelligent decision regarding the purchase of those services and to
protect the public from unfair or deceptive advertising and business practices.
(c) This title shall be construed liberally to achieve these
purposes.
§ 1789.12. Definitions
As used in this title:
(a) "Credit services organization" means a person who,
with respect to the extension of credit by others, sells, provides, or
performs, or represents that he or she can or will sell, provide or perform,
any of the following services, in return for the payment of money or other
valuable consideration:
(1) Improving a buyer's credit record, history, or rating.
(2) Obtaining a loan or other extension of credit for a buyer.
(3) Providing advice or assistance to a buyer with regard to
either paragraph (1) or (2).
(b) "Credit services organization" does not include any
of the following:
(1) Any person holding a license to make loans or extensions of
credit pursuant to the laws of this state or the United States who is subject
to regulation and supervision with respect to the making of those loans or
extensions of credit by an official or agency of this state or the United
States and whose business is the making of those loans or extensions of credit.
(2) Any bank, as defined in Section 102 of the Financial Code, or any savings
institution, as specified in subdivision (a) or (b) of Section 5102 of the Financial Code,
whose deposits or accounts are eligible for insurance by the Federal Deposit
Insurance Corporation.
(3) Any person licensed as a prorater by the Department of
Corporations when the person is acting within the course and scope of that
license.
(4) Any person licensed as a real estate broker performing an act
for which a real estate license is required under the Real Estate Law (Pt. 1
(commencing with Sec. 10000), Div. 4, B. & P.C.) and who is acting within
the course and scope of that license.
(5) Any attorney
licensed to practice law in this state, where the attorney renders services
within the course and scope of the practice of law, unless the attorney is an
employee of, or otherwise directly affiliated with, a credit services
organization.
(6) Any broker-dealer
registered with the Securities and Exchange Commission or the Commodity Futures
Trading Commission where the broker-dealer is acting within the course and
scope of the regulation.
(7) Any nonprofit
organization described in Section 501(c)(3) of the Internal Revenue Code that,
according to a final ruling or determination by the Internal Revenue Service,
is both of the following:
(A) Exempt from taxation
under Section 501(a) of the Internal Revenue Code.
(B) Not a private
foundation as defined in Section 509 of the Internal Revenue Code.
An advance ruling or determination of tax-exempt or foundation
status by the Internal Revenue Service does not meet the requirements of this
paragraph.
(c) "Buyer" means any natural person who is solicited to
purchase or who purchases the services of a credit services organization.
(d) "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.
(e) "Consumer credit reporting agency" means a consumer
credit reporting agency subject to the Consumer Credit Reporting Agencies Act,
Title 1.6 (commencing with Section 1785.1).
(f) "Person" includes an individual, corporation,
partnership, joint venture, or any business entity.
§ 1789.13. Credit services organizations; prohibited
activities
A credit services organization, and its salespersons, agents,
representatives, and independent contractors who sell or attempt to sell the
services of a credit services organization, shall not do any of the following:
(a) 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 or on behalf of the buyer.
(b) Fail to perform the agreed services within six months
following the date the buyer signs the contract for those services.
(c) Charge or receive any money or other valuable consideration
for referral of the buyer to a retail seller or other credit grantor who will
or may extend credit to the buyer, if the credit which is or will be extended
to the buyer (1) is upon substantially the same terms as those available to the
general public or (2) is upon substantially the same terms that would have been
extended to the buyer without the assistance of the credit services
organization.
(d) Make, or counsel or advise any buyer to make, any statement
which is untrue or misleading and which is known, or which by the exercise of
reasonable care should be known, to be untrue or misleading, to a consumer
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, such as statements
concerning a buyer's identification, home address, creditworthiness, credit
standing, or credit capacity.
(e) Remove, or assist or advise the buyer to remove, adverse
information from the buyer's credit record which is accurate and not obsolete.
(f) Create, or assist or advise the buyer to create, a new credit
record by using a different name, address, social security number, or employee
identification number.
(g) Make or use any untrue or misleading representations in the
offer or sale of the services of a credit services organization, including
either of the following:
(1) Guaranteeing or
otherwise stating that the organization is able to delete an adverse credit
history, unless the representation clearly discloses, in a manner equally as
conspicuous as the guarantee, that this can be done only if the credit history
is inaccurate or obsolete and is not claimed to be accurate by the creditor who
submitted the information.
(2) Guaranteeing or
otherwise stating that the organization is able to obtain an extension of
credit, regardless of the buyer's previous credit problems or credit history,
unless the representation clearly discloses, in a manner equally as conspicuous
as the guarantee, the eligibility requirements for obtaining an extension of
credit.
(h) Engage, directly or indirectly, in any act, practice, or
course of business which operates or would operate as a fraud or deception upon
any person in connection with the offer or sale of the services of a credit
services organization.
(i) Advertise or cause to be advertised, in any manner, the
services of the credit services organization, without being registered with the
Department of Justice.
(j) Fail to maintain an agent for service of process in this
state.
(k) Transfer or assign its certificate of registration.
(l) Submit a buyer's dispute to a consumer credit reporting
agency without the buyer's knowledge.
(m) Use a consumer credit reporting agency's telephone system or
toll-free telephone number to represent the caller as the buyer in submitting a
dispute of a buyer or requesting disclosure without prior authorization of the
buyer.
§ 1789.14. Information statement; necessity and time of
delivery to buyer; acknowledgement of delivery; retention on file
Prior to the execution of a contract or agreement between the
buyer and a credit services organization, the credit services organization
shall provide the buyer a statement in writing, containing all the information
required by Section 1789.15. The credit services organization shall
maintain on file or microfilm 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.
§ 1789.15. Information statement; contents
The information statement shall include all of the following:
(a) A complete and detailed description of the services to be
performed by the credit services organization for or on behalf of the buyer and
the total amount the buyer will have to pay, or become obligated to pay, for
the services.
(b) The buyer's right to proceed against the bond under the
circumstances and in the manner set forth in Section 1789.18.
(c) The name and address of the surety company which issued the
bond .
(d) A complete and accurate statement of the availability of
nonprofit credit counseling services.
The information statement shall be printed in at least 10-point
boldface type and shall include the following statement or any substantially
equivalent alternative that is approved by the Department of Justice:
"CONSUMER CREDIT FILE RIGHTS UNDER STATE AND FEDERAL LAW
You have a right to obtain a copy of your credit file from a
consumer credit reporting agency. You may be charged a reasonable fee not
exceeding eight dollars ($8). There is no fee, however, if you have been turned
down for credit, employment, insurance, or a rental dwelling because of information
in your credit report within the preceding 60 days. The consumer credit
reporting agency must provide someone to help you interpret the information in
your credit file. You have a right to dispute inaccurate information by
contacting the consumer credit reporting agency directly. However, neither you
nor any credit repair company or credit services organization has the right to
have accurate, current, and verifiable information removed from your credit
report. Under the Federal Fair Credit Reporting Act, the consumer credit
reporting agency must remove accurate, negative information from your report
only if it is over seven years old. Bankruptcy information can be reported for
10 years. If you have notified a credit reporting agency in writing that you dispute
the accuracy of information in your credit file, the consumer credit reporting
agency must then reinvestigate and modify or remove inaccurate information. The
consumer credit reporting agency may not charge a fee for this service. Any
pertinent information and copies of all documents you have concerning an error
should be given to the consumer credit reporting agency.
If reinvestigation does not resolve the dispute to your
satisfaction, you may send a brief statement to the consumer credit reporting
agency to keep in your file, explaining why you think the record is inaccurate.
The consumer credit reporting agency must include your statement about disputed
information in any report it issues about you.
You have a right to cancel the contract for any reason within five
working days from the date you signed it. If for any reason you do cancel the
contract during this time, you do not owe any money.
You have a right to sue a credit services organization if it
misleads you."
§ 1789.16. Contracts; requirements; contents
(a) A credit services organization shall not provide any service
to a buyer except pursuant to a written contract that complies with this
section. Every contract between the buyer and a credit services organization
for the purchase of the services of the credit services organization shall be
in writing, shall be dated, signed by the buyer, and include all of the
following:
(1) A conspicuous statement in size equal to at least 10-point
boldface 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."
(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 some other 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 date
by which the services are to be performed, or the estimated length of time for
performing the services not to exceed six months or a shorter period consistent
with the purposes of this title as may be prescribed by the Department of
Justice.
(4) The credit services organization's principal business address
and the name and address of its agent, other than the Secretary of State, in
the State of
(b) 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 type
of at least 10-point 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
must be returned within 15 days following receipt by the seller of your
cancellation notice.
"To cancel this contract, mail or deliver a signed and dated copy of this
cancellation notice, or any other written notice, to
_________________________________________________________________________ at
(name of seller)
_______________________________________________________________________________
(address of seller) (place of business)
not later than midnight ________.
(date)
"I hereby cancel this transaction."
_________________________________ _______________________________________
(date) (purchaser's signature)
A copy of the fully completed contract and all other documents the
credit services organization requires the buyer to sign shall be given to the
buyer at the time they are signed.
§ 1789.17. Seller's breach of contract or obligation;
violation of title
The seller's breach of a contract under this title or of any
obligation arising therefrom shall constitute a violation of this title.
§ 1789.18. Surety bonds; compliance requirements; filing of
copy
No credit services organization shall conduct business in this
state unless the credit services organization has first obtained a surety bond
in the principal amount of one hundred thousand dollars ($100,000) issued by an
admitted surety and the bond complies with all of the following:
(a) The bond shall be in favor of the State of California for the
benefit of any person who is damaged by any violation of this title. The bond
shall also be in favor of any individual damaged by those practices.
(b) Any person claiming against the bond for a violation of this
title may maintain an action at law against the credit services organization
and against the surety. The surety shall be liable only
for actual damages and not the punitive damages permitted under Section 1789.21. The aggregate liability of the surety to all
persons damaged by a credit services organization's violation of this title
shall in no event exceed the amount of the bond.
(c) The bond shall be maintained for two years following the date
on which the credit services organization ceases to conduct business in this
state.
A copy of the bond shall be filed with the Secretary of State.
§ 1789.19. Waiver of rights by buyer; prohibition; attempt to
obtain; violation of title; burden of proof on exemption or exception from
definition
(a) Any waiver by a buyer of the provisions of this title shall be
deemed contrary to public policy and shall be void and unenforceable. Any
attempt by a credit services organization to have a buyer waive rights given by
this title shall constitute a violation of this title.
(b) In any proceeding involving this title, the burden of proving
an exemption or an exception from a definition is upon the person claiming it.
§ 1789.20. Violations; misdemeanor; injunction; prosecutor
(a) Any person who violates any provision of this title is guilty
of a misdemeanor. Any superior court of this state shall have jurisdiction in
equity to restrain and enjoin the violation of any provision of this title.
The duty to institute actions for violation of this title,
including equity proceedings to restrain and enjoin such a violation, is hereby
vested in the Attorney General, district attorneys, and city attorneys. The Attorney
General, any district attorney, or any city attorney may prosecute misdemeanor
actions or institute equity proceedings, or both.
This section shall not be deemed to prohibit the enforcement by
any person of any right provided by this or any other law.
(b) The misdemeanor
provision of this section does not apply to a seller's breach of a contract
subject to this title.
§ 1789.21. Actions for recovery of damages or injunctive
relief
(a) Any buyer injured by a violation of this title or by the
credit services organization's breach of a contract subject to this title may
bring any action for recovery of damages, or for injunctive relief, or both.
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
attorney's fees and costs. An award, if the trial court deems it proper, may be
entered for punitive damages.
(b) Any person, including, but not limited to, a consumer credit
reporting agency, as defined in subdivision (d) of Section 1785.3, and any consumer of, or user of, a consumer credit
report under the Consumer Credit Reporting Agencies Act (Title 1.6 (commencing
with Section 1785.1)), and any furnisher of credit information
under the Consumer Credit Reporting Agencies Act, may bring an action for the
recovery of damages or for injunctive relief, or both, for a violation of this
title. Any person bringing such an action who prevails in
the action shall be entitled to reasonable attorney's fees and costs.
§ 1789.22. Application of other laws; remedies as additional
The provisions of this title are not exclusive and do not relieve
the parties or the contracts subject thereto from compliance with any other
applicable provision of law.
The remedies provided in this title for violation of any section
of this title shall be in addition to any other procedures or remedies for any
violation or conduct provided for in any other law.
§ 1789.23. Severability
If any provision of this title or if any application thereof to
any person or circumstance is held invalid, the remainder of the title and the
application of the provision to other persons and circumstances shall not be
affected thereby.
§ 1789.24. Claims against deposits in lieu of bonds;
establishment; approval; 240-day period; payment; approval of claims after
240-day period; deposits not subject to attachment, garnishment, or execution
(a) When a deposit has been made in lieu of a bond pursuant to Section 995.710 of the Code of Civil Procedure, the person
asserting a claim against the deposit shall, in lieu of proceeding under Section 996.430 of the Code of Civil Procedure, establish the
claim by furnishing evidence to the Secretary of State of a money judgment
entered by a court, together with evidence that the claimant is a person
described in subdivision (b) of Section 1789.18.
(b) When a person has established the claim with the Secretary of
State, the Secretary of State shall review and approve the claim and enter the
date of approval thereon. The claim shall be designated an "approved
claim."
(c) When the first claim against a particular deposit has been
approved, it shall not be paid until the expiration of a
period of 240 days after the date of its approval by the Secretary of State.
Subsequent claims that are approved by the Secretary of State within the same
240-day period shall similarly not be paid until the expiration of the 240-day
period. Upon the expiration of the 240-day period, the Secretary of State shall
pay all approved claims from that 240-day period in full unless the deposit is
insufficient, in which case each approved claim shall be paid a pro rata share
of the deposit.
(d) When the Secretary of State approves the first claim against a
particular deposit after the expiration of a 240-day period, the date of
approval of that claim shall begin a new 240-day period to which subdivision
(c) shall apply with respect to any amount remaining in the deposit.
(e) After a deposit is exhausted, no further claims shall be paid
by the Secretary of State. Claimants who have had their claims paid in full or
in part pursuant to subdivision (c) or (d) shall not be required to return
funds received from the deposit for the benefit of other claimants.
(f) When a deposit has been made in lieu of a bond, as specified
in subdivision (a), the amount of the deposit shall not be subject to
attachment, garnishment, or execution with respect to an action or judgment
against the credit services organization, other than as to an amount as no
longer needed or required for the purpose of this title which would otherwise
be returned to the credit services organization by the Secretary of State.
(g) The Secretary of
State shall retain a cash deposit for two years from the date the Secretary of
State receives written notification from the assignor of the deposit that the
assignor has ceased to engage in the business of a credit services organization
or has filed a bond pursuant to Section 1789.18, provided that there are no outstanding
claims against the deposit. The written notice shall include all of the
following: (1) name, address, and telephone number of the assignor; (2) name,
address, and telephone number of the bank at which the deposit is located; (3)
account number of the deposit; and (4) a statement whether the assignor is
ceasing to engage in the business of a credit services organization or has
filed a bond with the Secretary of State. The Secretary of State shall forward
an acknowledgment of receipt of the written notice to the
assignor at the address indicated therein, specifying the date of receipt of
the written notice and anticipated date of release of the deposit.
(h) This section shall
apply to all deposits retained by the Secretary of State.
(i) A judge of a
superior court may order the return of the deposit prior to the expiration of
two years upon evidence satisfactory to the judge that there are no outstanding
claims against the deposit or order the Secretary of State to retain the
deposit for a sufficient period beyond the two years specified in subdivision
(g) to resolve outstanding claims against the deposit account.
§ 1789.25. Registration application; bond; fee; contents;
investigation; notification of change in information; expiration of certificate
of registration
(a) Every credit services organization shall file a registration
application with, and receive a certificate of registration from, the
Department of Justice before conducting business in this state. The Department
of Justice shall not issue a certificate of registration until the bond
required by Section 1789.18 has been filed with the office of the
Secretary of State. The application shall be accompanied by a registration fee
of one hundred dollars ($100). The registration application shall contain all
of the following information:
(1) The name and address where business is actually conducted of
the credit services organization.
(2) The names,
addresses, and driver's license numbers of any and all persons who directly or
indirectly own or control 10 percent or more of the outstanding shares of stock
in the credit services organization.
(3) Either of the following:
(A) A full and complete
disclosure of any litigation commenced against the credit services organization
or any resolved or unresolved complaint that relates to the operation of the
credit services organization and that is filed with the Attorney General or any
other governmental authority of this state, any other state, or the federal
government. With respect to each resolved complaint identified by the
disclosure, the disclosure shall include a brief description of the resolution.
(B) An acknowledged
declaration under penalty of perjury stating that no litigation has been
commenced and no unresolved complaint relating to the operation of the organization
has been filed with the Attorney General or any other
governmental authority of this state, any other state, or the federal
government.
(4) Other information that the Department of Justice requires,
either at the time of application or thereafter.
(b) The Department of Justice may conduct an investigation to
verify the accuracy of the registration application. If the application
involves investigation outside this state, the applicant credit services
organization may be required by the Department of Justice to advance sufficient
funds to pay the actual expenses of the investigation. Any nonresident applying
for registration under this section shall designate and maintain a resident of
this state as the applicant's agent for the purpose of receipt of service of
process.
(c) Each credit services organization shall notify the Department
of Justice in writing within 30 days after the date of a change in the
information required by subdivision (a), except that 30
days' advance notice and approval by the Department of Justice shall be
required before changing the corporate name or address, or persons owning more
than 10 percent of the shares of stock in the organization. Each credit
services organization registering under this section may use no more than one
fictitious or trade name and shall maintain a copy of the registration
application in its files. The organization shall allow a buyer to inspect the
registration application upon request.
(d) A certificate of registration issued pursuant to this section
shall expire annually on the last day of December but may be renewed by filing
a renewal application accompanied by a fee not to exceed the Department of
Justice's costs of administration.
(e) The credit services organization shall attach to the registration
statement a copy of the contract or contracts which the credit services
organization intends to execute with its customers and a copy of the required
bond.
§ 1789.26. Enforcement; filing fees
(a) The Secretary of State shall enforce the provisions of this
title that govern the filing and maintenance of bonds and deposits in lieu of
bonds.
(b) The Secretary of State shall charge and collect a filing fee
not to exceed the cost of filing the bond or the deposit in lieu of a bond
pursuant to Section 995.710 of the Code of Civil Procedure.
Law Review Construing the Statute
Christine L. Regan, Consumer Protection; consumer credit--credit
services organizations, 24 Pacific L. J., 708 (Jan. 1993).
Copyright
© 1993 by the
Christine
L. Regan
Civil Code § 1789.25 (new); §§ 1785.17, 1789.12, 1789.13,
1789.14, 1789.15, 1789.16, 1789.18, 1789.21 (amended).
AB 2999 (Peace); 1992 Stat.
Existing law prohibits credit
services organizations [FN1] from (1) receiving payment
before completing services for a buyer, [FN2] (2) receiving payment for
referring the buyer to a retail seller or other *709 credit grantor who may extend credit, (3) advising a buyer to make
a statement which is known to be false or misleading to a credit reporting
agency or to a person whom may extend credit to the buyer, [FN3] or (4)
using any false or misleading representations while selling the services of a
credit services organization. [FN4] Chapter
651 revises the definition of "credit services organization" to
include those attorneys employed by or directly affiliated with a credit
services organization. [FN5] In
addition, Chapter 651 prohibits credit services organizations from the
following: (1) Failing to perform services within ninety days following the
date the buyer signs the contract; [FN6] (2)
removing adverse credit information which is accurate and not obsolete; [FN7] (3)
assisting the buyer to create a new credit record by using a different name,
address, social security number, or employee identification; [FN8] (4)
submitting a buyer's dispute to a consumer credit reporting agency without
informing the buyer; [FN9] and (5)
calling a consumer credit reporting agency's on the telephone and representing
the caller as the buyer when submitting a dispute or requesting disclosure
without the buyer's prior authorization. [FN10] Chapter
651 *710 also prohibits a credit services organization from engaging in any
fraudulent or deceptive act in connection with selling the services of the
organization. [FN11] Under
Chapter 651, prohibited practices would also apply to independent contractors
of a credit services organization. [FN12]
Existing
law authorizes a buyer injured by one of these violations or from a breach of
contract by the credit services organization to bring an action to recover
damages. [FN13] Chapter
651 provides that an injured buyer may bring an action for recovery of damages,
injuntive relief, or both. [FN14] Chapter
651 also requires all credit services organizations to register with the
Department of Justice, and specifies the information required [FN15] on the
registration application. [FN16] The
Department of Justice may verify the accuracy of the *711 information
provided in the registration application. [FN17] Under Chapter 651, a credit
services organization must notify the Department of Justice in writing of any
changes in the information required by the application within thirty days of
the change. [FN18]
Under existing law, a consumer
credit reporting agency [FN19] must provide the consumer
with a free consumer credit report if requested by the consumer within thirty
days of being notified of adverse action that may have been affected by the
consumer's credit rating. [FN20] Chapter 651 allows the
consumer sixty days to make this request. [FN21]
[FN1].
See Cal.Civ. Code § 1789.12(a), (e) (amended by Chapter 651)
(defining credit services organization as an individual, corporation,
partnership, joint venture, or any business entity who, with respect to the
extension of credit by others, represents that he or she will provide any of
the following services in return for payment: (1) Improving a buyer's credit
record, history, or rating; (2) obtaining a loan or other extension of credit
for a buyer; or (3) providing advice or assistance to a buyer with regard to
either of the services listed above); id. § 1789.13 (amended by Chapter 651)
(providing that the credit services organization's salespersons, agents,
representatives, and independent contractors are also prohibited from the
practices in § 1789.13). See generally James P. Nehf, a Legislative Framework for Reducing Fraud in the Credit Repair
Industry,70 N.C.L.Rev. 781, 781 (1992) (stating that in recent years this
new industry which promises to improve a person's credit rating for a fee has
grown, and that instances of fraud in the credit repair industry are
widespread, causing a rising tide of consumer complaints); id. at 781-82 (reporting that the use of credit by consumers
has increased dramatically, and that outstanding credit card debt on Visa and
MasterCard accounts alone increased from $20 billion in 1981 to $154 billion in
1990).
[FN2].
See Cal.Civ. Code § 1789.13(c) (amended by Chapter 651) (stating
that payment for such a referral is prohibited if the credit which is extended
to the buyer is on substantially the same terms available to the public, or the
credit extended is on the same terms that the buyer would have received without
the help of the credit services organization).
[FN3].
See id. § 1789.13(d) (amended by chapter 651) (listing the type of
statements which are prohibited as those concerning a buyer's identification,
home address, credit worthiness, credit standing, or credit capacity).
[FN4].
Id. § 1789.13(a), (c), (d),(g) (amended by Chapter 651).
[FN5].
Id. § 1789.12(a)(6) (amended by Chapter 651).
[FN6].
Id. § 1789.13(b) (amended by Chapter 651).
[FN7].
Id. § 1789.13(e) (amended by Chapter 651).
[FN8].
Id. § 1789.13(f) (amended by Chapter 651).
[FN9].
Id. § 1789.13(l) (amended by Chapter 651).
[FN10].
[FN11]. Cal.Civ. Code § 1789.13(h) (amended by Chapter 651); see id. § 1789.13(g)(1)-(2) (amended by Chapter 651 (prohibiting
misleading representations which include stating that the organization can
delete an adverse credit history without clearly stating that this can only be
done if the credit history is inaccurate or obsolete, or stating that the
organization can obtain an extension of credit despite the buyers credit
problems without clearly disclosing the eligibility requirements for obtaining
an extension of credit).
[FN12].
Id. § 1789.13 (amended by Chapter 651).
[FN13].
[FN14].
[FN15].
See id. § 1789.25(a)(1)-(3) (enacted by Chapter 651) (stating the
registration application must contain: (1) The name and business address of the
credit services organization; (2) the names, addresses, and driver's license
numbers of anyone who owns or controls at least ten percent stock in the
organization; and (3) either a full and complete disclosure of any litigation
or filed complaints that relate to the operation of the organization, or an
acknowledged declaration under penalty of perjury that no such litigation or
complaint exists).