Credit repair rights in New York, section by section
Your credit repair rights in New York come from two sources, the state's General Business Law sections 458-e and 458-f and the federal Credit Repair Organizations Act, and they bind New York Credit Repair like any other firm. No fee may be collected before the work, you may cancel within three days, and disputing errors yourself is free.
- Your first review call costs nothing
- Every account checked on all three bureau files
- Disputes only for inaccurate, incomplete or unverifiable entries
- You can still write to the bureaus yourself
Five credit repair rights New York consumers can count on
The five to keep in mind
- Payment follows performance. A credit services business in New York may not collect fees before it performs the services in the contract (Gen. Bus. Law 458-e), and federal law says the same (15 U.S.C. 1679b(b)).
- Three days to back out. You may cancel "without any penalty or obligation, within three days from the date the contract is signed" (Gen. Bus. Law 458-f). Federal law gives 3 business days.
- A separate rights document. The federal Consumer Credit File Rights statement must come as its own document, apart from the contract (15 U.S.C. 1679c(b)).
- Disputes cost you nothing. A bureau must reinvestigate a dispute free of charge (15 U.S.C. 1681i).
- True history is not for sale. No one has the right to have accurate, current and verifiable information removed from your report (15 U.S.C. 1679c(a)).
Every firm that sells credit repair to a New Yorker is bound by these, New York Credit Repair included. When you compare companies, ask each one to show you where its paperwork meets each point.
The Consumer Credit File Rights statement, reproduced in full
Federal law requires every credit repair organization to hand you this statement, separate from the contract, before you sign. The text below is copied from 15 U.S.C. 1679c(a).
Consumer Credit File Rights Under State and Federal Law
You have a right to dispute inaccurate information in your credit report by contacting the credit bureau directly. However, neither you nor any "credit repair" company or credit repair organization has the right to have accurate, current, and verifiable information removed from your credit report. The credit bureau must remove accurate, negative information from your report only if it is over 7 years old. Bankruptcy information can be reported for 10 years.
You have a right to obtain a copy of your credit report from a credit bureau. You may be charged a reasonable fee. 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 credit bureau must provide someone to help you interpret the information in your credit file. You are entitled to receive a free copy of your credit report if you are unemployed and intend to apply for employment in the next 60 days, if you are a recipient of public welfare assistance, or if you have reason to believe that there is inaccurate information in your credit report due to fraud.
You have a right to sue a credit repair organization that violates the Credit Repair Organization Act. This law prohibits deceptive practices by credit repair organizations.
You have the right to cancel your contract with any credit repair organization for any reason within 3 business days from the date you signed it.
Credit bureaus are required to follow reasonable procedures to ensure that the information they report is accurate. However, mistakes may occur.
You may, on your own, notify a credit bureau in writing that you dispute the accuracy of information in your credit file. The credit bureau must then reinvestigate and modify or remove inaccurate or incomplete information. The credit bureau may not charge any fee for this service. Any pertinent information and copies of all documents you have concerning an error should be given to the credit bureau.
If the credit bureau's reinvestigation does not resolve the dispute to your satisfaction, you may send a brief statement to the credit bureau, to be kept in your file, explaining why you think the record is inaccurate. The credit bureau must include a summary of your statement about disputed information with any report it issues about you.
The Federal Trade Commission regulates credit bureaus and credit repair organizations. For more information contact: The Public Reference Branch, Federal Trade Commission, Washington, D.C. 20580.
Source: 15 U.S.C. 1679c(a), law.cornell.edu, retrieved 2026-10-18.
What New York's General Business Law adds for Brooklyn consumers
New York uses the term credit services business for a company that sells credit repair. Two sections of the General Business Law set rules that go to the heart of how such a business may deal with you.
- Section 458-e, timing of fees. A credit services business may not collect fees from a consumer before it performs the services set out in the contract. The section labels the practice an "unfair and deceptive trade practice and unlawful". In practice, that means you should never be asked to pay up front for work that is still to come.
- Section 458-f, the fee notice. The contract language in this section includes the sentence: "Under New York law no fee may be collected in advance of performance of the services specified in this contract." Look for it in any contract you are offered.
- Section 458-f, cancellation. The same section's wording reads: "You may cancel this contract, without any penalty or obligation, within three days from the date the contract is signed."
The state's three days and the federal 3 business days both apply, so a careful contract explains each. What neither law allows is a promise to make accurate, current and verifiable information disappear. We hold to that on every page of this site and in every dispute we send.
Source: N.Y. Gen. Bus. Law 458-e and 458-f, nysenate.gov, retrieved 2026-10-18.
Questions about credit repair rights in New York
Can a New York credit repair firm ask for a setup payment before it starts?
Not lawfully. Section 458-e of the General Business Law says a credit services business may not collect fees before it performs the services set out in the contract, and calls doing so an unfair and deceptive trade practice. The federal Credit Repair Organizations Act has the same rule for any service not yet fully performed.
How do I cancel a credit repair contract in New York?
The contract wording in General Business Law 458-f says you may cancel without any penalty or obligation within three days from the date the contract is signed. Federal law separately lets you cancel within 3 business days from signing, for any reason. Cancel in writing and keep a copy of what you send and when.
Does the federal rights statement have to come separately from the contract?
Yes. Under 15 U.S.C. 1679c(b), the Consumer Credit File Rights statement must be given as a document separate from any written contract or other agreement. If a company only shows you its rights language buried inside the contract, it has not followed that rule. The full text of the statement is reproduced on this page.
Who enforces the rules on credit repair companies?
At the federal level, the statement on this page says the Federal Trade Commission regulates credit bureaus and credit repair organizations. You also have a private right to sue a credit repair organization that violates the Credit Repair Organizations Act. For a state-law concern you can contact the New York Attorney General's office.
Where can I report a problem with a credit bureau's handling of my dispute?
File a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint. The CFPB asks you to dispute the information directly with the reporting company first. In 2025, 45,109 of New York's credit reporting complaints were about a company's investigation into an existing problem.
Sources: N.Y. Gen. Bus. Law 458-e and 458-f (nysenate.gov); 15 U.S.C. 1679b and 1679c (law.cornell.edu); CFPB Consumer Complaint Database, state NY, 2025. Retrieved 2026-10-18.
For how these rules shape an engagement with us, see credit repair services in Brooklyn, or browse the Brooklyn credit FAQ.
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