For purposes of this subchapter, the following definitions apply:

1. (1) Consumer The term “consumer” means an individual.
2. (2) Consumer credit transaction The term “consumer credit transaction” means any transaction in which credit is offered or extended to an individual for personal, family, or household purposes.

3. (3) Credit repair organization The term “credit repair organization”—

   1. (A) means any person who uses any instrumentality of interstate commerce or the mails to sell, provide, or perform (or represent that such person can or will sell, provide, or perform) any service, in return for the payment of money or other valuable consideration, for the express or implied purpose of—

      1. (i) improving any consumer’s credit record, credit history, or credit rating; or
      2. (ii) providing advice or assistance to any consumer with regard to any activity or service described in clause (i); and

   2. (B) does not include—

      1. (i) any nonprofit organization which is exempt from taxation under section 501(c)(3) of title 26;
      2. (ii) any creditor (as defined in section 1602 of this title), with respect to any consumer, to the extent the creditor is assisting the consumer to restructure any debt owed by the consumer to the creditor; or
      3. (iii) any depository institution (as that term is defined in section 1813 of title 12) or any Federal or State credit union (as those terms are defined in section 1752 of title 12), or any affiliate or subsidiary of such a depository institution or credit union.
4. (4) Credit The term “credit” has the meaning given to such term in section 1602(e) ¹ of this title.

(Pub. L. 90–321, title IV, § 403, as added Pub. L. 104–208, div. A, title II, § 2451, Sept. 30, 1996, 110 Stat. 3009–455.)

Editorial Notes

References in Text

Section 1602(e) of this title, referred to in par. (4), was redesignated section 1602(f) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.

Prior Provisions

For a prior section 403 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.

¹ See References in Text note below.