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The credit repair laws in New York amend the general credit repair laws of America to increase protection for their consumers. If you want to start a credit repair business in New York or want to seek help to fix your credit, it’s critical to learn about this law.

New York is indeed one of the wealthiest states in America. However, this does not indicate that they are debt-free. The state has high credit delinquencies and many New Yorkers are in despair to improve their credit score. This is why many are searching for a credit repair business. 

New York is the 3rd richest state in America with a GDP of $1,705,127,000 as of 2022. The median household income of the state is $72,108. This is more than $6,000 than the national average which is $65, 712. However, these numbers do not indicate that New Yorkers have less debt than the residents of other states. New York is ranked 8th among the states with credit card delinquencies of more than 90 days. It has an 8% delinquency rate which is just 3% less than Nevada, which is ranked first among all the states at an 11% delinquency rate.

Let’s take a look at New York State’s Credit Health

Credit Health of New York vs USA

Looking at the chart, we can see that the way New Yorkers handle credit is pretty much the same as the USA as a whole. This means that New Yorkers need credit repair services to help manage, build, and improve their credit. Like other Americans in other states. Being the 4th largest state in America with a 19,223,191 population, building a credit repair business in New York has great potential.

However, like many other businesses, it is highly important to abide by the law to avoid legal issues. Which may result in business bankruptcy or closure.


The Credit Repair Law in New York Amends the General Credit Services Organization Act


The state of New York detected many credit repair companies that scam people’s money by promising services that cannot be delivered. That is why the state increased its consumer protection by submitting Bill A00598, which is to amend the general business law concerning the operations of credit repair businesses in the state.

Here is the summary of provisions of the credit repair law in New York


  • CREDIT REPAIR LAWS IN NEW YORKThe consumer has the right to obtain credit reports and dispute information directly from a credit-reporting agency for free.
  • A credit repair business or any person offering credit repair services cannot remove accurate and current negative information from a credit report.
  • The consumer has the right to cancel a credit repair service agreement
  • The credit repair business or any person providing credit repair services shall provide the consumer with how to contact the Attorney General or Federal Trade Commission to file a complaint against the credit repair service provider.
  • The credit repair business or its representative is obliged to complete all the services expected to be performed within six months.
  • The consumer can cancel the credit repair services agreement within five days from the day of the agreement.
  • Referring a consumer to a creditor that offers the same terms as available to the general public should be free and at no charge.
  • No person or credit repair business shall advise a consumer to make any untrue or misleading statement to a credit reporting agency or creditor.
  • Using a credit report agency number to represent the caller as the consumer in submitting a dispute is against the law.
  • Requesting disclosure without prior authorization of the consumer is prohibited
  • A credit repair business or any credit repair service provider shall not create a new credit record for the consumer under a different name and Social Security number.
  • The civil penalty for violation of the credit repair law in New York is $2,500 per violation.


** Disclaimer: All the information on this page regarding the credit report law in New York is from the New York State Assembly**


Want to start a credit repair business in New York? You may find this simple guide helpful.


How to Start a Credit Repair Business in New York?

  1. Register your credit repair business.

    All businesses are required to be registered in the state of New York before conducting any services.

  2. Plan your marketing strategy to gather clients.

    The credit repair business is a growing industry. You need to have a good marketing strategy to be ahead of your competitors. Remember to always abide by the law and don’t give promises that you can’t guarantee. This can damage your reputation and might lead to legal issues.

  3. Invest on powerful credit repair software.

    This is very important to make the business process fast and easy. We highly recommend investing in CMMW. It’s an automatic and all-in-one credit repair software for business. It has all the tools you need for a marketing campaign, sending dispute letters, requesting credit reports, record-keeping, emailing, etc.