§ 66-223. Prohibited acts.

NORTH CAROLINA STATUTES AND CODES

§ 66‑223. Prohibitedacts.

A credit repair business andits salespersons, agents, and representatives, and independent contractors whosell or attempt to sell the services of a credit repair business, shall not doany of the following:

(1) Charge or receiveany money or other valuable consideration prior to full and completeperformance of the services that the credit repair business has agreed toperform for or on behalf of the consumer;

(2) Charge or receiveany money or other valuable consideration solely for referral of the consumerto a retail seller or to any other credit grantor who will or may extend creditto the consumer, if the credit that is or will be extended to the consumer isupon substantially the same terms as those available to the general public;

(3) Represent that itcan directly or indirectly arrange for the removal of derogatory creditinformation from the consumer's credit report or otherwise improve theconsumer's credit report or credit standing, provided, this shall not preventtruthful, unexaggerated statements about the consumer's rights under existinglaw regarding his credit history or regarding access to his credit file;

(4) Make, or counsel oradvise any consumer to make, any statement that is untrue or misleading andwhich is known or which by the exercise of reasonable care should be known, tobe untrue or misleading, to a consumer reporting agency or to any person whohas extended credit to a consumer or to whom a consumer is applying for anextension of credit, with respect to a consumer's creditworthiness, creditstanding, or credit capacity; or

(5) Make or use anyuntrue or misleading representations in the offer or sale of the services of acredit repair business or engage, directly or indirectly, in any act, practice,or course of business which operates or would operate as a fraud or deceptionupon any person in connection with the offer or sale of the services of acredit repair business. (1991, c. 327, s. 1.)