Kentucky's Credit Repair Laws
 

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Credit Consultants Association's Kentucky's Credit Laws:

Kentucky currently has legislation pertaining to credit repair. These laws apply to the state that the consumer is located in, not the credit repair company. Keep this in mind if you plan on doing business out of state.

**DISCLAIMER - The following information is not legal advice. We strive to keep all information updated to the best of our knowledge but regulations are subject to change frequently, without our immediate awareness. The information on this page may not be 100% accurate. We strongly urge you to do your own research and to consult with a legal professional or your local legislators before making any decisions. 

Office of the Attorney General

Department Overseeing Entity

Visit Website

Address
1024 Capital Center Drive, Suite 200 Frankfort, KY 40601
Phone
(502) 696-5389

Kentucky

Registration Requirements.

Some states require registration with the overseeing entity. There may also be municipal or county regulations regarding business licensing or permits depending on your location. Consult with your local government to determine licensing requirements. 

Registration required?

Yes.

Fee for registration?

$250.00

Additional fees?

N/A

Link to registration requirements?

N/A

Link to registration forms?

Click here.

Kentucky

Bond Requirements.

Surety bonds are required in certain states in order to prove that the credit repair organization is operating in an ethical manner. The amount and requirements vary from state to state.

Bond required?

Bond is currently required if the organization wants to charge before services are rendered - a bond and an irrevocable letter of credit, a copy of the surety bond with the Attorney General.

Amount of bond required?

$25,000.00

Link to bond submission application?

Click here.

Kentucky

Contract Requirements.

All credit repair organizations are subject to both state and federal regulations. According to federal law, the Credit Repair Organizations Act (CROA) requires all CRO's to provide contracts outlining the terms and descriptions of their services to their customers. Each individual state has different requirements regarding the language of those contracts.

Contract required?

Yes.

Contract disclosure language?

N/A

Additional language requirements?

N/A

Kentucky

Who is exempt?

Anyone performing credit repair services and receiving compensation for said services is subject to the regulations in this act. However, occupations in related professions may also perform duties that may be considered credit repair. Usually, as long as someone is behaving within the course and scope of their profession and not collecting compensation, they are considered exempt from these regulations. However, these exemption requirements vary from state to state. 

Attorneys exempt?

Yes.

CPAs exempt?

Not listed.

Financial advisors exempt?

Not listed.

Mortgage lenders/ Originators exempt?

Yes.

Real estate agents exempt?

Yes.

Non-profits exempt?

Yes.

Non-profit exemption details, restrictions?

None specified.

For the full legal text, see below or visit KRS § 367.46955

367.46955 Prohibited telephone solicitation acts and practices.

It is a prohibited telephone solicitation act or practice and a violation of KRS 367.46951 to 367.46999 for any person making a telephone solicitation through telecommunications services or interconnected Voice over Internet Protocol or VoIP service to engage in the following conduct: (1) Advertising or representing that registration as a telemarketer equals an endorsement or approval by any government or governmental agency; (2) Requesting a fee in advance to remove derogatory information from or improve a person’s credit history or credit record; (3) Requesting or receiving a payment in advance from a person to recover or otherwise aid in the return of money or any other item lost by the consumer in a prior telephone solicitation transaction; (4) Requesting or receiving payment of any fee or consideration in advance of obtaining a loan or other extension of credit when the telemarketing company has guaranteed or represented a high likelihood of success in obtaining or arranging a loan or other extension of credit for a person; (5) Obtaining or submitting for payment a check, draft, or other form of negotiable paper drawn on a person’s checking, savings, or bond or other account without the consumer’s express written authorization, or charging a credit card account or making electronic transfer of funds except in conformity with KRS 367.46963; (6) Procuring the services of any professional delivery, courier, or other pickup service to obtain immediate receipt or possession of a consumer’s payment, unless the goods are delivered with the opportunity to inspect before any payment is collected; (7) Assisting, supporting, or providing substantial assistance to any telemarketer when the telemarketing company knew or should have known that the telemarketer was engaged in any act or practice prohibited under this section; (8) Making a telephone solicitation to anyone under eighteen (18) years of age. When making a telephone solicitation the telemarketer shall inquire as to whether the person is eighteen (18) years of age or older and the answer shall be presumed to be correct; (9) (a) Causing misleading caller identification information to be transmitted to users of caller identification services, or to otherwise misrepresent the origin of the telephone solicitation. (b) 1. This subsection shall not apply to solicitations which block caller identification, nor shall it apply to solicitations in which the name and telephone number of the party on whose behalf the call is made is substituted for the name and telephone number of the actual caller. 2. This subsection shall not apply to a telecommunications, broadband, or Voice over Internet Protocol service provider that is: a. Acting in the telecommunications, broadband, or Voice over Internet Protocol service provider’s capacity as an intermediary for the transmission of telephone service between the caller and the recipient; b. Providing or configuring a service or service feature as requested by the customer; c. Acting in a manner that is authorized or required by applicable law; or d. Engaging in other conduct that is necessary to provide service; (10) Directing or permitting employees to use a fictitious name or not to use their name while making a telephone solicitation; (11) Threatening, intimidating, or using profane or obscene language; (12) Causing the telephone to ring more than thirty (30) seconds in an intended telephone solicitation; (13) Engaging any person repeatedly or continuously with behavior a reasonable person would deem to be annoying, abusive, or harassing; (14) Initiating a telephone solicitation call to a person, when that person has stated previously that he or she does not wish to receive solicitation calls from that seller; (15) Making or causing to be made an unsolicited telephone solicitation call if the residential number for that telephone appears in the current publication of the national Do Not Call Registry maintained by the United States Federal Trade Commission; (16) Making telephone solicitations to a person’s residence at any time other than between 10 a.m. – 9 p.m. local time, at the called person’s location; (17) Selling or making available for economic gain any information revealed during a telephone solicitation without the express written consent of the consumer; (18) Making a telephone solicitation to any residential telephone using an artificial or prerecorded voice to deliver a message, unless the call is initiated for emergency purposes by schools regulated by the Kentucky Department of Education or the call is made with the prior express consent of the called party; or (19) Engaging in any unfair, false, misleading, or deceptive practice or act as part of a telephone solicitation. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 105, sec. 1, effective June 27, 2019. — Amended 2018 Ky. Acts ch. 145, sec. 1, effective July 14, 2018. — Amended 2007 Ky. Acts ch. 115, sec. 2, effective June 26, 2007. — Amended 2002 Ky. Acts ch. 21, sec. 2, effective July 15, 2002. — Created 1998 Ky. Acts ch. 581, sec. 3, effective July 15, 1998. Legislative Research Commission Note (07/15/2002). Under the authority of KRS 7.136, the Reviser of Statutes has corrected a clearly erroneous statutory reference in subsection (5) of this section as enacted in 2002 Ky. Acts ch. 21, sec. 2, by changing “KRS 367.46953” to “KRS 367.46963.”