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Consumer Protection Division

Credit Service Organizations

Promises to improve poor credit can be deceiving

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Advertisements often promise miracles in repairing bad credit reports. Credit service organizations tell consumers that for a fee, bad credit, judgments, bankruptcies, and bad debts can be erased from credit reports forever, or that a new credit identity can be created that will solve all the consumer’s credit problems. In reality, such ads promise things that cannot be delivered.

What Indiana Law Requires of For-Profit Credit Service Organizations

  • Have a written contract with consumers describing in detail the services to be performed.
  • Provide consumers with a three-day right to cancel the contract.
  • Maintain a $25,000 bond to be used to satisfy consumer claims.


  • Negative but accurate credit information cannot legally be removed from a credit history except by the passage of time.
  • No one can guarantee to erase bad credit.
  • You can remove inaccurate or outdated information from your credit report yourself, at no cost.
  • It is illegal to allow a credit service organization to set up a new credit file for you.
  • Do not pay credit service fees before the services are completed.
  • Indiana law gives you the right to sue credit service organizations for the greater of twice your actual damages or $1,000 plus attorney fees.