How to Cancel a Credit-Repair Contract and Get Your Money Back Under CROA

Cancel Within Three Business Days, Then Fight for Any Money You Paid

You can cancel a credit repair contract without penalty or obligation until midnight of the third business day after you sign, and a company that took your money before finishing the work has broken federal law. The Credit Repair Organizations Act (CROA) gives you both protections. This guide shows how to send the cancellation, what to do if you already paid, and where to turn if the company won't cooperate.

Cancel in the First Three Business Days

Under CROA, (https://www.law.cornell.edu/uscode/text/15/1679e) by giving notice before midnight of the third business day after the contract is signed or becomes enforceable. The (https://www.consumerfinance.gov/ask-cfpb/what-should-i-know-about-credit-repair-services-en-1343/) puts it plainly: if you've just signed up, you can cancel for any reason within three business days at no charge.

How the deadline works

The clock runs to midnight, not to the end of the company's office hours. The law also says the company (https://www.law.cornell.edu/uscode/text/15/1679d) until you've signed a compliant written contract or the three-business-day period has ended. If someone started "working" on your file the same afternoon you signed, that's a red flag worth noting.

The statute talks about business days, and some consumer pages simply say "three days." Don't test the edge. Near the deadline? Send your notice today.

How to send the notice

CROA requires each contract to include a two-copy form headed "Notice of Cancellation." To use it:

1. Fill in the date and sign your name on one copy.
2. Deliver or mail it to the company name and address printed on the form. (https://www.law.cornell.edu/uscode/text/15/1679e) if the form is missing, as long as it reaches the stated address before the deadline.
3. Use a method that proves delivery: certified mail with a return receipt, a courier with tracking, or hand delivery where you get a signed receipt. If the contract also lists an email address, send a copy there too.
4. Keep a copy of everything, including the contract, the receipt and any emails.
5. In the notice itself, say that you cancel and that you want any money you've paid returned in full.

If a salesperson tells you the three days "don't apply" to your plan, that claim is wrong. Any attempt to get you to give up CROA rights (https://www.law.cornell.edu/uscode/text/15/1679f), and a waiver you sign is void.

What CROA Requires in the Contract

Know what the contract must contain. Violations you spot here matter later if you need a refund. The FTC's consumer guidance says the written contract must explain what services the company will perform, how long results will take, the total cost and any results it guarantees. It must also state your three-day right to cancel without any charge, and the company must hand you a cancellation form.

The statute adds a few details. The contract has to be written and dated, and it must list:

• how and when you pay, including the total of all payments;
• a full, detailed description of the services, including any performance guarantees and a projected completion date or expected length of time;
• the company's name and principal business address;
• a bold statement next to the signature line that begins "You may cancel this contract without penalty or obligation at any time before midnight."

The company must also give you copies of the signed contract and any other document you sign, at the time you sign. A contract that doesn't comply with CROA is (https://www.law.cornell.edu/uscode/text/15/1679f). For background on where the law draws its lines, see our explainer on why (/is-credit-repair-legal/).

Advance Fees: What to Do If You Already Paid

CROA bars a credit repair organization from charging or receiving money (https://www.law.cornell.edu/uscode/text/15/1679b). The CFPB repeats the point: companies can't request or receive payment until they've completed the services they promised, and it warns that some firms use monthly payment plans to get around that rule.

That means a first payment, a "setup fee" or a "first work fee" collected before any work is done is a problem in itself. Here is how to handle each situation:

Where you are	What to do
Inside the three business days	Cancel in writing and demand a full refund in the same notice. Keep proof of delivery.
Past the three days, company took money up front	Send a written refund demand that names the advance-fee rule, and keep a copy.
Past the three days, contract is missing required terms	Say so in the demand. A noncompliant contract is void under CROA.
Company stops answering	File complaints (see below) and consider a consumer attorney.

Also stop any automatic payments you set up, using the company's cancellation process and your bank or card issuer. Do this in addition to the written notice, not instead of it.

Getting Your Money Back After the Three Days

Missing the three-day window doesn't end your options. It changes the argument. Instead of a no-questions cancellation, you're pointing to a CROA violation such as an advance fee, a missing cancellation notice or misleading claims about what the company can do.

Start with a short written demand. State the date you signed, what you paid and the specific violation, and ask for a refund by a reasonable date. Send it the same trackable way as your cancellation. Many companies pay at this stage because the legal exposure is real.

If you paid by card, ask your card issuer whether a dispute fits your situation and what deadline applies. Terms vary by issuer, so don't assume a window; ask.

If the company refuses, the law gives you a path. A company that fails to comply with CROA is (https://www.law.cornell.edu/uscode/text/15/1679g), plus whatever punitive damages the court allows. In a successful case the court also awards costs and reasonable attorney fees. There's a time limit, too: an action generally must be brought within (https://www.law.cornell.edu/uscode/text/15/1679i), or within five years of discovering a willful misrepresentation of required disclosures.

This is general information, not legal advice. A consumer attorney or a legal aid office can tell you how it applies to your contract and state.

Where to Complain

A complaint puts your story on a regulator's desk, and it can prompt the company to respond.

• CFPB: file at consumerfinance.gov/complaint.
• FTC: report at ReportFraud.ftc.gov.
• Your state attorney general and state consumer protection office: both are listed by the FTC as places to report. Many states add their own registration or bond rules, which we cover in (/states-requiring-credit-repair-company-bond/).

Include your contract, proof of payment, your cancellation notice and delivery receipt, and a short timeline.

Before You Sign Again

Watch for warning signs next time. The CFPB lists promises to remove accurate, current negative information, advice to dispute everything even when it's correct, and refusal to explain your rights. Anything you can do through a credit repair company you can also do yourself for free, by disputing errors directly with the bureaus. If you're weighing the decision, read (/is-credit-repair-worth-the-cost/) first.

The Bottom Line

Cancel in writing, before midnight of the third business day, and prove it arrived. If you've already paid, ask for the money back in writing and point to the specific CROA violation. If the company won't pay, complain to the CFPB, the FTC and your state, and talk to a consumer attorney about the damages CROA allows.

Frequently Asked Questions

How long do I have to cancel a credit repair contract?

Until midnight of the third business day after you sign or the contract becomes enforceable. Cancel in writing and keep proof of delivery.

Can a credit repair company charge me before it does any work?

No. CROA bars collecting money before the promised service is fully performed, and monthly payment plans built to get around that rule are a warning sign.

Can I still get a refund after the three days?

Possibly. If the company broke CROA, for example by charging up front or leaving out the required cancellation notice, the law lets you recover the greater of your actual damages or what you paid. Ask for a refund in writing, then report the company if it refuses.

Is a contract void if it leaves out the cancellation notice?

CROA says a contract that doesn't comply with the law is void and can't be enforced by courts, and any waiver of your rights is void too.