The Credit Repair Organizations Act is a federal law passed in 1996. It requires companies operating as credit repair agencies to have written contracts detailing the scope and cost of their services to clients. The law prohibits companies from collecting money until after they have completely performed the services they are offering. The law also bans companies and consumers from making false statements to credit reporting agencies about negative credit information. In addition, consumers have the right to cancel a contract with a credit repair agency if they do so within three days of signing the documents. All contracts must include a disclosure outlining the consumers’ rights.