---
kind: "section"
citation: "15 U.S.C. § 1679b"
title: "15"
title_heading: "Commerce and Trade"
number: "1679b"
heading: "Prohibited practices"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1679b"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter II–A — Credit Repair Organizations"
---

# §1679b. Prohibited practices

- (a) **In general—** No [person](/usc/15/1602.md?p=e) may—
  - (1) make any statement, or counsel or advise any [consumer](/usc/15/1679a.md?p=1) to make any statement, which is untrue or misleading (or which, upon the exercise of reasonable care, should be known by the [credit repair organization](/usc/15/1679a.md?p=3), officer, employee, agent, or other [person](/usc/15/1602.md?p=e) to be untrue or misleading) with respect to any [consumer](/usc/15/1679a.md?p=1)’s [credit](/usc/15/1679a.md?p=4) worthiness, [credit](/usc/15/1679a.md?p=4) standing, or [credit](/usc/15/1679a.md?p=4) capacity to—
    - (A) any [consumer reporting agency](/usc/15/1681a.md?p=f) (as defined in [section 1681a(f) of this title](/usc/15/1681a.md?p=f)); or
    - (B) any [person](/usc/15/1602.md?p=e)—
      - (i) who has extended [credit](/usc/15/1679a.md?p=4) to the [consumer](/usc/15/1679a.md?p=1); or
      - (ii) to whom the [consumer](/usc/15/1679a.md?p=1) has applied or is applying for an extension of [credit](/usc/15/1679a.md?p=4);
  - (2) make any statement, or counsel or advise any [consumer](/usc/15/1679a.md?p=1) to make any statement, the intended effect of which is to alter the [consumer](/usc/15/1679a.md?p=1)’s identification to prevent the display of the [consumer](/usc/15/1679a.md?p=1)’s [credit](/usc/15/1679a.md?p=4) record, history, or rating for the purpose of concealing adverse information that is accurate and not obsolete to—
    - (A) any [consumer reporting agency](/usc/15/1681a.md?p=f);
    - (B) any [person](/usc/15/1602.md?p=e)—
      - (i) who has extended [credit](/usc/15/1679a.md?p=4) to the [consumer](/usc/15/1679a.md?p=1); or
      - (ii) to whom the [consumer](/usc/15/1679a.md?p=1) has applied or is applying for an extension of [credit](/usc/15/1679a.md?p=4);
  - (3) make or use any untrue or misleading representation of the services of the [credit repair organization](/usc/15/1679a.md?p=3); or
  - (4) engage, directly or indirectly, in any act, practice, or course of business that constitutes or results in the [commission](/usc/15/1602.md?p=dd-1) of, or an attempt to commit, a fraud or deception on any [person](/usc/15/1602.md?p=e) in connection with the offer or sale of the services of the [credit repair organization](/usc/15/1679a.md?p=3).
- (b) **Payment in advance—** No [credit repair organization](/usc/15/1679a.md?p=3) may charge or receive any money or other valuable consideration for the performance of any service which the [credit repair organization](/usc/15/1679a.md?p=3) has agreed to perform for any [consumer](/usc/15/1679a.md?p=1) before such service is fully performed.

## Source credit

(Pub. L. 90–321, title IV, § 404, as added Pub. L. 104–208, div. A, title II, § 2451, Sept. 30, 1996, 110 Stat. 3009–456.)

## Notes

### Editorial Notes

### Prior Provisions

For a prior section 404 of Pub. L. 90–321, see note set out under section 1679 of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable after the end of the 6-month period beginning on Sept. 30, 1996, except with respect to contracts entered into by a credit repair organization before the end of such period, see section 413 of Pub. L. 90–321, as added by Pub. L. 104–208, set out as a note under section 1679 of this title.