What to Look for in a Credit Repair Company Contract.

A signed contract feels like protection. With credit repair it is often where the trouble starts, because regulators keep finding the same things in this industry: advance fees, promised results, and billing that was hard to stop.

So read the contract like it matters, because it does. The one worth signing says in writing what you pay, what gets done, and how you leave, and it never promises a score.

A Legitimate Credit Repair Contract Is Written, Signed, and CROA-Compliant

A legitimate credit repair contract is in writing, signed by you, and follows the Credit Repair Organizations Act (CROA). That 1996 federal law bars these companies from charging before the work is done and from making untrue or misleading statements. If the paper in front of you does not meet that bar, you are not holding a contract you can trust.

CROA’s contract section lists what has to be on the page. That means the payment terms, a detailed description of the services, how long the service will take, any guarantee, the company’s legal name and street address, and a cancellation notice. We take each one in turn below.

First, ask what you are buying. The right to dispute a credit-report error has been federal law since 1970 under the FCRA, and it costs nothing. The FTC’s accuracy study found that 1 in 5 consumers had an error on at least one of their three credit reports, and 5% had one serious enough to raise the price they pay for credit (FTC, 2013). If your report holds real errors, a company may save you effort. If it does not, there is nothing to buy, and our guide to DIY credit repair shows what you can do for free.

What Total Cost Should a Credit Repair Contract Spell Out?

The cost section should list every payment you will owe, in dollars, and show that nothing is due until the work is done. CROA bars charging before a service is performed (15 U.S.C. 1679b(b)), and it is the rule regulators keep citing.

The record is long. On May 2, 2019, the CFPB took action against Progrexion Marketing and PGX Holdings, the companies behind Lexington Law and CreditRepair.com, for collecting prohibited advance fees on telemarketed credit repair and for deceptive bait-and-switch marketing. On August 28, 2023, the CFPB announced a $2.7 billion settlement over the same conduct. On December 5, 2024, it announced $1.8 billion returned to 4.3 million people who were charged illegal advance fees.

Today’s billing terms deserve the same scrutiny. Lexington Law’s own FAQ puts its monthly rate at $139.95, invoiced at the end of each service period, and a declined payment adds a processing fee. Lexington Law has a 3.2 on Trustpilot from 624 reviews. In its latest 200 reviews, 134 are one or two stars. Of those 134, 33 describe billing that continued or refunds refused, and 19 describe fees they did not expect.

One of them, Adamrodrigo, wrote in a 1-star Trustpilot review on July 31, 2026: “This company happened to almost ruin my life in 2023.”

Watch for fees with other names, too. Credit Saint’s own plan table shows a First Work Fee of $99 to $195 on top of $79.99 to $139.99 a month. The complaint data shows why the cost section matters. In the three years to September 10, 2026, CreditRefresh’s analysis of the CFPB database found 4,217 complaints recorded in the CFPB’s public Consumer Complaint Database under “Credit repair services.” Of the 2,786 that name a firm, 871 said services were not provided as promised and 727 cited upfront or unexpected fees. These are unverified consumer allegations. For the full price picture, see what credit repair actually costs.

Make the Contract Name Every Task, Bureau, and Who Writes the Letters

The scope of services should name the work: which bureaus, which items, who writes each letter, and whether you see it before it goes out. A vague line like “credit repair services” gives you nothing to hold anyone to.

Bureau reach is the first thing to pin down. Credit Karma’s own help article says Direct Dispute only works for TransUnion, so a service that covers one bureau leaves two files untouched. Then ask who does the writing. A done-for-you firm like The Credit People works the case for you, and you watch a dashboard instead of approving individual letters. A tool like ours puts each letter in front of you first.

Vague scope also leaves people in the dark. At Credit Saint, 8 of the 57 one- and two-star reviews in its latest 200 said they had no idea what was done.

Last, keep the scope honest about what a dispute can do. Under FCRA Section 611(a)(5)(A), an item found inaccurate, incomplete, or unverifiable has to be deleted or modified. Accurate items are not on that list. If you want a plain read on what software can handle, we cover it in how AI credit repair works.

Look for a Service Period, a Legal Name, and a Street Address

The contract should say how long the service runs and who is on the other side: the company’s legal name and principal business address. A service period describes the company’s work. It is not a date by which items leave your report.

The law sets its own clocks. A bureau generally has 30 days to investigate a dispute, and up to 45 in some cases. Anyone who writes a different number into a contract as a promised result is selling something the bureau controls.

Ask whether you pay month to month, and what happens when nothing changes. “Paid for months, nothing changed” was the most common complaint at Lexington Law, at 79 of its 134 one- and two-star reviews in its latest 200. It was also the top one at Credit Saint, at 36 of 57.

The legal name matters because it is how you check a company’s record. Searching the CFPB complaint database for “Lexington Law” returns zero. Its complaints are filed under John C. Heath, Attorney at Law, PLLC, which has 781 recorded in the CFPB’s public Consumer Complaint Database under credit repair services in the three years to September 10, 2026. A name you cannot trace is a record you cannot read.

You Get 3 Business Days to Cancel a Credit Repair Contract

CROA gives you 3 business days to cancel a credit repair contract without penalty. The contract must carry a bold-faced notice saying so, along with a detachable cancellation form. If that notice is missing or buried, put the pen down.

Cancel in writing and keep a copy. Then read how the money moves, because stopping the service and stopping the billing are two different jobs. Lexington Law bills by automatic monthly draft and refuses prepaid cards. At Credit Saint, 23 of the 57 one- and two-star reviews in its latest 200 said billing continued or a refund was refused. Look for a clause that lets you cancel any time, and for the exact steps to do it.

Our own terms are short. We charge $49.99 a month with no setup fee, no per-dispute charge, and no contract. You cancel any time. For a wider checklist, see what separates the best credit repair companies.

Why Promised Score Jumps and Guaranteed Removals Are Red Flags

Promising a specific score increase, or the removal of accurate negative items, is illegal. A contract that does either belongs back on the table. Regulators have gone after firms for exactly this.

On September 30, 2024, the CFPB announced $41.3 million against Commonwealth Equity Group, doing business as Key Credit Repair, for charging advance fees before achieving durable results and misrepresenting its ability to remove negative items. On August 10, 2026, the FTC announced $200 million against Credit Glory for false and misleading credit repair promises, illegal upfront fees, and unlawful recurring subscriptions, including through Google ads aimed at military servicemembers.

Reviewers describe the same pattern. The Credit People has a 1.7 on Trustpilot from 17 reviews. All 17 are one or two stars, and 4 of them say a promised result did not happen.

A written guarantee is a different thing. CROA wants any guarantee in the contract, so read its conditions line by line. Ours is a refund promise, never a score promise. Members who work the full program can reclaim 100% of their Refresh Monitoring payments, typically $650 to $700. The program is nine dispute rounds through RushMail, one every 40 days over about 12 months. Credit-card utilization has to reach 6% or below by round eight, there can be no new negative items, and none of the three bureau scores can have risen above enrollment. RushMail per-letter fees are billed separately and are not refunded.

Do Not Sign Anything That Tells You to Dispute Something True

A company that tells you to dispute accurate information, or to build a new credit identity with a “credit privacy number,” is asking you to commit fraud. Your right covers what is inaccurate, incomplete, or unverifiable, and stops there.

CROA also bars a credit repair company from advising you to make false claims to a bureau or a lender. If a sales call or a contract clause pushes you that way, the contract has already told you who wrote it.

So the contract that protects you is plain. It says what gets done, what you pay, and how you walk away, and it never promises a result the bureaus control.

Six Ways to Pay for Credit Disputes, and What Each Asks You to Sign

Three of these six hand you the letter before it is mailed, and each starts at $49.99 a month or less.

Every price is that company’s own published rate, read off that company’s own site on September 15, 2026. Trustpilot scores and review counts as published on September 24, 2026.

How CreditRefresh Drafts Each Letter for You to Sign at $49.99 a Month

Every red flag above comes from work done out of your sight, so we built CreditRefresh to put the work in front of you. In CreditRefresh’s September 18, 2026 analysis of paying-member data, 2.3% of disputed bureau-level items in mailed rounds had a recorded outcome. Within that subset, 47.9% were no longer reported on a newer pull of the same bureau, while 52.1% remained reported with a changed balance, status or negative flag.

Here is what you get for $49.99 a month. It is included with Refresh Monitoring, with no setup fee, no per-dispute charge, and no contract. Our AI scans all three bureau reports and flags items that look inaccurate, incomplete, unverifiable, or too old to report. It drafts a letter for each item you choose, and nothing goes out until you review and sign. You can mail the letters yourself or hand a round to RushMail for a small per-letter fee. Our guide to how AI credit repair works walks through each step.

The bureaus decide every dispute’s outcome, and your score depends on the rest of your file.

Frequently Asked Questions

What are the risks of using a credit repair company?

The main risks are advance fees, promises of results no company controls, and billing that is hard to stop. The CFPB and FTC have taken action on all three, most recently the FTC’s $200 million action against Credit Glory on August 10, 2026. A contract that lists costs, tasks, and cancellation steps cuts those risks.

Is paying a credit repair company a good idea?

It can be when your reports hold real errors and the contract meets every CROA term. You can also dispute errors yourself for free, and the right has existed since 1970. Software that you review and sign costs less than a monthly agency retainer.

What are the key components of a credit repair contract?

The contract must be in writing and signed by you. It must list the payment terms, a detailed description of the services, how long the service will take, any guarantee, the company’s legal name and principal business address, and a bold notice of your 3-business-day right to cancel.

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

No. CROA bars a credit repair company from charging before the service is performed. A contract that asks for a first payment up front is a red flag.

How do I cancel a credit repair contract?

Cancel in writing and keep a copy. Inside the first 3 business days you can cancel without penalty using the form the contract must include. After that, follow the contract’s own steps, and check how the payment is pulled so billing stops too.

What if I already signed a bad contract?

Cancel in writing, save every letter and receipt, and look up the company’s legal name in the CFPB’s public Consumer Complaint Database. You can also file your own complaint with the CFPB. Complaints are unverified allegations, but they put your record on file.

CreditRefresh replaces a contract you would have to decode with a flat $49.99 monthly price and your signature on every letter.

Start disputes with a tool that has no contract to decode →