Credit Repair Laws in Illinois
Educational information, not legal advice. Statutes change; the links below go to the official text.
The short answer
Illinois regulates credit repair under the Credit Services Organizations Act, 815 ILCS 605. A company has to register with the Illinois Secretary of State before it does business here. It cannot take money before finishing the work unless it holds a $100,000 surety bond. It has to give you a written disclosure before you sign, and you can cancel within three days. Separately, 735 ILCS 5/13-205 and 13-206 set 5 and 10 year limits on lawsuits over old debts.
What the Illinois Credit Services Organizations Act requires
| Requirement | What the statute says | Section |
|---|---|---|
| Registration | File a registration statement with the Secretary of State before conducting business in Illinois. Update it within 90 days of a change. The filing fee may not exceed $100. | 605/9 |
| Surety bond | $100,000, in favor of the State of Illinois for people harmed by a violation. A company without the bond may not charge or receive money before it has fully performed. | 605/10, 605/5(1) |
| Written disclosure first | Before you sign or pay, whichever comes first, the company gives you a written statement of your rights to see and dispute your credit file, a description of the services and total cost, and the surety company name and address. | 605/6 |
| Written contract | Dated, signed by you, with payment terms, a full description of services, an estimated completion date, and the company's address and Illinois agent. | 605/7(a) |
| Cancellation | You may cancel before midnight of the third day after the transaction. The contract must include two copies of a notice of cancellation. | 605/7(a)(1), (b) |
| Noncompliant contracts | A contract that does not comply is void and unenforceable. Any waiver of your rights is void. | 605/8 |
| Prohibited statements | No untrue or misleading statements to a credit bureau or lender, and none about the amount of credit improvement you can expect. | 605/5(3), (4) |
| Your remedies | You can sue for actual damages, and may also be awarded punitive damages, attorney's fees and court costs. The Attorney General or a State's Attorney can seek an injunction. | 605/11, 605/12 |
| Penalties | A first violation is a Class A misdemeanor. A later one is a Class 4 felony. Breach of contract alone is excluded. | 605/13 |
Source: Credit Services Organizations Act, Illinois General Assembly. Text read November 9, 2026. The Act does not cover banks, credit unions, licensed attorneys, nonprofits that charge nothing up front, and a few other listed groups (605/3(d)).
Questions to ask before you pay a credit repair company
- Can I see your registration statement? The Act says the company must let a buyer inspect it on request (605/9(d)).
- Which surety company holds your bond, and what is the account number? The written disclosure has to include both (605/6(6), (7)).
- Does the contract include the three-day cancellation notice in bold type next to the signature line? (605/7(a)(1))
- Did anyone promise a score increase? The Act bars representations about the amount of improvement you can expect (605/5(4)).
Time limits on suing over old debt in Illinois
| Type of claim | Time limit | Statute |
|---|---|---|
| Written contracts, promissory notes, written leases and other written evidence of indebtedness | 10 years after the cause of action accrued | 735 ILCS 5/13-206 |
| Unwritten contracts, expressed or implied, and civil actions not otherwise provided for | 5 years after the cause of action accrued | 735 ILCS 5/13-205 |
For written evidence of debt, section 13-206 says that a written payment or written new promise to pay can start a fresh 10-year period. The text of section 13-205 has no matching sentence. The statutes count from when the cause of action "accrued." They do not define that date for every type of debt, and whether a given credit card or other account counts as a written contract is a question for a court.
Sources: 735 ILCS 5/13-205 and 735 ILCS 5/13-206, Illinois General Assembly. Text read November 9, 2026.
Worked example (an illustration, not advice about your account)
A collection letter arrives in 2026 for an account that went into default in 2019. Say the cause of action accrued in 2019.
- If the debt rests on a signed agreement or other written evidence, the 10-year limit in 13-206 would run to 2029.
- If it is treated as an unwritten or implied contract, the 5-year limit in 13-205 would have run out in 2024.
The gap between those two answers is why the type of agreement matters, and why a consumer-law attorney or a legal aid office should look at the actual paperwork before you rely on either date. The accrual date in a real case may differ from the date used here.
Where to go with a complaint
The Act lets the Attorney General or a State's Attorney bring an action to stop a violation (605/12). You can file a consumer complaint with the Illinois Attorney General's consumer protection division.
What this page does not cover
This page covers two topics: the Illinois credit repair statute and the time limits on suing over old debt. Federal law, including the Credit Repair Organizations Act (15 U.S.C. 1679 et seq.), applies in Illinois in addition to the state Act. We have not yet checked Illinois rules on medical debt reporting or credit freezes against the statutes, so this page makes no claims about them.
Comparing providers
Hold any credit repair company, including ScoreWise, to the list above. You can read our service agreement before you decide.
Illinois credit repair law: questions
How long do I have to cancel a credit repair contract in Illinois?
The contract must say you may cancel before midnight of the third day after the date of the transaction (815 ILCS 605/7).
Does a credit repair company have to register in Illinois?
Yes. It must file a registration statement with the Secretary of State before conducting business in Illinois (815 ILCS 605/9). Persons and businesses listed in 605/3(d), such as banks and licensed attorneys acting as attorneys, are not covered by the Act.
How big is the required bond?
$100,000 (815 ILCS 605/10(c)). A company that holds the bond may take payment before finishing; one that does not may not.
How long can a creditor wait before suing in Illinois?
Ten years for written contracts and other written evidence of debt, five years for unwritten contracts (735 ILCS 5/13-206 and 13-205). Which one applies to your account depends on the paperwork.
Back to all state credit law guides
Sources: 815 ILCS 605, 735 ILCS 5/13-205, 735 ILCS 5/13-206, Illinois Attorney General. All read or loaded on November 9, 2026.
