(954) 568-7153




(954) 568-7153






Starting a credit repair business in Texas has a great opportunity. It is the second most populous and richest state in terms of GDP in the USA, next to California. But like any other business, you have to make it right to succeed. Learn the Texas credit repair laws and interesting facts about the state.

Texas has a population of 29.9 million with $1,772,132,000 GDP. It is the home of 6590,216 millionaires which is 6.32% of the entire country. However, like in any other state, many Texans rely on credit to meet their needs and wants. 58% of the population have credit card debt, 38% have auto loans, 23% have mortgage debts, and 17% of them have student loans.

The state’s average credit score is 680. But 30% of the residents of the state have subprime credit scores. This means that many of them need to fix and restore credit. This is why credit repair businesses are growing and very in demand in Texas. Here is what you need to know about the credit repair laws of Texas.


Learn about the Texas Credit Repair Laws Prohibited Acts, Disclosure Statement, Terms of Contract, and Cancellation of Contract


Texas Credit Repair Laws Prohibited Acts


  1. CREDIT REPAIR LAWS IN TEXASThe credit repair company or its representative is NOT allowed to receive any payment before the completeness of the services to be performed. Unless the credit repair business obtained a surety bond.
  2. The credit repair company or its agent shall NOT receive any payment for referring the consumer to a creditor who may extend credit to the consumer that has the same term that is available to the general public.
  3. The credit repair service provider shall NOT make untrue or misleading representations or statements in the offer of the services. This includes: guaranteeing to “remove bad credit” or words to that effect. And guaranteeing extension of consumer’s credit regardless of the person’s credit history.
  4. The credit repair business is NOT allowed to make any untrue or misleading statement relating to the consumer’s creditworthiness, credit capacity, and credit standing to a consumer reporting agency or a creditor.

Texas Credit Repair Laws Disclosure Statement


Before performing any services, a credit repair company must provide a statement of the document to the consumer with the following details:

  1. A complete and detailed description of the services to be performed and the total cost of those services.
  2. An explanation of the consumer’s right to proceed against the surety bond with the name and address of the surety company that issued the surety bond.
  3. A complete statement of the consumer’s right to review information on the consumer maintained in a file by a consumer reporting agency.
  4. A statement that information in the consumer’s file is available for review without charge. If the request is made to the consumer reporting agency not later than the 30th day after the agency receives notice the consumer has been denied credit.
  5. A complete and accurate statement of the consumer’s right to dispute directly with a consumer reporting agency the completeness or accuracy of an item contained in the consumer’s file maintained by the agency.
  6. A statement that accurate information cannot be permanently removed from the files of a consumer reporting agency.
  7. A complete statement explaining: when the consumer information becomes obsolete, and that a consumer reporting agency is prevented from issuing a report containing obsolete information.
  8. A complete statement of the availability of nonprofit credit counseling services

The credit repair company shall keep a copy of the document with the consumer’s signature for 2 years.


Forms and Terms of Contract under Texas Credit Repair Laws


The credit repair company and the consumer must have a written contract dated and signed by the consumer. The contract must contain the following:

  1. The total payment to be made by the buyer to the credit repair business or its credit repair specialist.
  2. A detailed description of the services to be performed. Including the promise of a full or partial refund if the services are not complete within 180 days.
  3. The name and address of the business and its agent who will perform the credit repair services.

Cancellation of Contract under Texas Credit Repair Laws


  1. The contract between the credit repair business and its consumer must include the following statement. Written in bold, capitalized, or underlined near the space where the consumer should sign.



  1. The contract must also include 2 detachable copies of the cancellation notice. With the following statements in boldfaced type.

The contract must have attached two easily detachable copies of the cancellation notice. The notice must be in boldfaced type and the following form:


You may cancel this contract, without any penalty or obligation, within three days after the date the contract is signed.

“Notice of Cancellation”

If you cancel, any payment made by you under this contract will be returned within 10 days after the date of receipt by the seller of your cancellation notice.

To cancel this contract, mail or deliver a signed dated copy of this cancellation notice, or other written notice, to:

(name of seller) at (address of seller) (place of business) not later than midnight (date)


I hereby cancel this transaction.




(consumer’s signature)”


**Disclaimer: We strive hard to deliver the most accurate information regarding the Texas credit repair laws. However, government laws may change anytime. Please refer to the Credit Services Organization Act of Texas for more information.**


After learning the credit laws in Texas, it’s time to know the required things to start a credit repair business in Texas.


Starting a Credit Repair Business in Texas? Here’s How

How to Start a Credit Repair Business in Texas

  1. Obtain a surety bond.

    The state of Texas required all credit repair businesses to obtain a surety bond from a surety company of $10,000.

  2. Register your credit repair business in Texas


    Filing of registration in the Secretary of the State office is a requirement before conducting a business in Texas.

  3. Invest in computer software to make the business processes run fast, with less error, and smoothly.  

    CRM, autoresponder, invoicing system, and emailing system are a few of the programs you’ll need. We recommend investing in All-in-One credit repair software for businesses to save workload and money from buying multiple programs.