Credit Repair Laws in California
Last updated: November 2026. This page is for educational purposes only and is not legal advice. Laws change; verify current statutes with official state sources.
State Snapshot: California
The following overview covers the essential credit law data points for California:
- Credit Repair Law: Credit Services Act of 1984
- Surety Bond Required: $100,000
- State Cancellation Period: 5 days
- Written Contract Statute of Limitations: 4 years
- State Medical Debt Protections: Yes
- Minor Freeze Available: Yes
If you live in California and are thinking about repairing your credit, the legal landscape here has its own characteristics that shape what companies can and cannot do. The Credit Services Act of 1984 (Cal. Civ. Code § 1789.10 et seq.) is the primary state statute covering credit repair in California. It requires companies to register with the California Department of Justice and carry a $100,000 surety bond. When it comes to old debts, written contracts carry a 4-year statute of limitations in California, while oral contracts are limited to 2 years. Freeze protection in California goes beyond adults: minors and protected consumers can also have their files locked at no cost. One area where California stands out is medical debt. California law prohibits credit reporting agencies from reporting medical debt that has been paid or settled. Additionally, California limits the reporting of unpaid medical debt and provides consumers with additional protections regarding medical debt collections.
Credit Repair Organization Laws in California
California requires credit repair organizations to register with the Department of Justice and file a $100,000 surety bond with the Secretary of State before offering services. Consumers have a five-day right to cancel the contract. The Act prohibits certain deceptive practices and requires specific disclosures in the contract.
Federal CROA rules layer on top of state regulations. Consumers get a written contract, three days to cancel, and protection from advance fees.
| Requirement | Detail |
|---|---|
| CSO Statute | Credit Services Act of 1984 (Cal. Civ. Code § 1789.10 et seq.) |
| Registration Office | Required with the California Department of Justice |
| Surety Bond Amount | $100,000 |
| Contract Mandate | Required |
| Cancellation Period (State) | 5 days (state law) |
Source: California Department of Justice. Last checked: November 2026.
Statute of Limitations on Debt in California
The statute of limitations on debt acts as an expiration date for lawsuits. Once the window closes, the debt is considered time-barred. The time period begins when you miss a payment or when the account is charged off. Partial payments can reset the clock in many jurisdictions, so get legal advice before paying on an old debt.
| Debt Type | Time Period |
|---|---|
| Written Contract Debt | 4 years |
| Oral Contract Debt | 2 years |
| Credit Card (Open Account) | 4 |
| Promissory Note Debt | 4 years |
Citation: Cal. Code Civ. Proc. § 337. View the statute. Last checked: November 2026.
Medical Debt Credit Reporting in California
California law prohibits credit reporting agencies from reporting medical debt that has been paid or settled. Additionally, California limits the reporting of unpaid medical debt and provides consumers with additional protections regarding medical debt collections.
| Rule | Status |
|---|---|
| Paid medical debt removed from credit reports | Yes |
| Minimum collection amount before reporting | No state-specific threshold |
Citation: Cal. Civ. Code § 1785.13. View the statute. Last checked: November 2026.
Credit Freeze Laws in California
A security freeze prevents new creditors from viewing your credit history until you lift it. This makes it harder for identity thieves to open accounts in your name. Every consumer has the right to freeze their credit at no cost under federal legislation passed in 2018.
| Feature | Availability in California |
|---|---|
| Adult credit freeze | Yes (federal law) |
| Minor credit freeze | Yes |
| Guardian freeze | Yes |
| Protected consumer freeze | Yes |
To place a freeze, contact each of the three credit bureaus: equifax.com, experian.com, and transunion.com. You can do this through their websites or by calling their toll-free numbers. Temporary lifts are free, so you can unfreeze when applying for credit and refreeze right after.
State statute: Cal. Civ. Code § 1785.11.6. View the statute. Last checked: November 2026.
What This Means for Consumers
Breaking this down for California consumers: credit repair companies here face a $100,000 bonding requirement and registration with the California Department of Justice. That adds accountability. You also get 5 days to cancel any repair contract. For debt, the 4-year SOL on written contracts is your shield against stale collection lawsuits. Medical debt reporting gets state-specific restrictions.
Critical Facts
- California has one of the strictest credit repair laws in the country. The $100,000 surety bond requirement is among the highest of any state.
- The five-day cancellation period under California law is longer than the three-day federal CROA minimum.
- California's Credit Services Act requires registration with the Department of Justice, not just the Secretary of State.
Pro Tip: Navigating Credit in California
California has taken specific action on medical debt. California law prohibits credit reporting agencies from reporting medical debt that has been paid or settled. Additionally, California limits the reporting of unpaid medical debt and provides consumers with additional protections regarding medical debt collections. If you have medical collections on your report, review whether they comply with these state rules. One often overlooked protection in California: the $100,000 surety bond required under the Credit Services Act of 1984. If a credit repair company fails to deliver or breaks the law, you may be able to file a claim against this bond to recover your losses. California is one of the states that goes beyond adult freeze protections. If you have children or care for a vulnerable adult, you can freeze their credit files for free. This stops identity thieves from opening accounts in their names.
ScoreWise Services in California
ScoreWise helps California residents navigate the credit repair process within the framework of state law. The Credit Services Act of 1984 sets specific requirements for how credit repair operates in California, and we ensure full compliance. Our free review covers your Equifax, Experian, and TransUnion reports, flagging items that may be disputable under both state and federal regulations.
Credit Law Questions and Answers
Is credit repair company registration required in California?
Credit repair organizations must register with the California Department of Justice before offering services in California. The governing statute is the Credit Services Act of 1984 (Cal. Civ. Code § 1789.10 et seq.). A $100,000 surety bond is also mandatory.
How long can a debt collector sue me in California?
In California, the statute of limitations on written contracts is 4 years (Cal. Code Civ. Proc. § 337). For oral contracts, it is 2 years. After the statute of limitations expires, a debt collector cannot sue to collect the debt, though they may still attempt to collect it voluntarily. Making a payment may restart the clock in some cases.
How does California handle medical debt on credit reports?
California has enacted state-level protections. California law prohibits credit reporting agencies from reporting medical debt that has been paid or settled. Additionally, California limits the reporting of unpaid medical debt and provides consumers with additional protections regarding medical debt collections.
Can I freeze my child's credit in California?
Yes. California allows credit freezes for minors and protected consumers. Parents or guardians can contact each bureau to place a freeze on a child's file at no cost.
What is the cancellation period for credit repair in California?
State law gives you 5 days to cancel a credit repair contract in California. Cancel within this window and you are entitled to a full refund, no questions asked.
Can I dispute credit report errors myself in California?
Yes, and it costs nothing. Every consumer has the right to challenge errors directly with the credit bureaus without paying a fee. Get your free reports at AnnualCreditReport.com, then use each bureau's online dispute portal to challenge inaccuracies. You can also file complaints with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov or the California Attorney General's office.
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