Credit Repair Business Requirements in District of Columbia (2026): Bond & DLCP Rules

Last Updated: August 16, 2026

The District of Columbia regulates credit repair under the Consumer Credit Service Organizations chapter, D.C. Code §§ 28-4601 through 28-4608. Before serving District of Columbia consumers, a credit repair business must satisfy every duty that law imposes — and the federal Credit Repair Organizations Act (CROA) on top. This guide answers every District of Columbia-specific question first, then links the full launch sequence.

Do I need a license to start a credit repair business in the District of Columbia?

The District does not issue a “credit repair license,” but a consumer credit service organization operating in the District must register with the Mayor by filing a registration statement and paying the registration fee. The governing law is D.C. Code § 28-4602, and it applies on top of the federal CROA. Business licensing in the District runs through the Department of Licensing and Consumer Protection.

The statutory fees are $300 to register and $200 annually before April 2 of each subsequent year, and any change to the information in your registration statement must be reported in writing within 10 days. The Mayor may request more information if the statement appears incomplete. Because the District is not a state, plan on the ordinary District business licensing track as well — confirm what applies to your entity with the Department of Licensing and Consumer Protection.

Does the District of Columbia require a surety bond for credit repair?

Conditionally. D.C. Code § 28-4604 requires a $25,000 surety bond — issued by a surety company legally allowed to do business in the District — from any consumer credit service organization that charges or receives money before the services under the contract are complete. Section 28-4603 makes taking that money without the bond a prohibited act.

A trust account is the permitted alternative: it must hold a minimum balance of $25,000 at a federally insured bank or savings and loan association located in the District, and it exists to guarantee a refund of what the consumer paid. Because federal CROA already bans advance fees outright, the safest District model is to bill only after performance — and to confirm the current amount and filing procedure with the Department of Licensing and Consumer Protection before you register.

What is the District of Columbia Consumer Credit Service Organizations law?

Chapter 46 of D.C. Code title 28 is the District’s consumer credit service organizations law. It sets definitions (§ 28-4601), the registration statement and fees (§ 28-4602), prohibited acts (§ 28-4603), the $25,000 bond or trust account (§ 28-4604), the pre-contract disclosure and written agreement (§ 28-4605), enforcement (§ 28-4606), penalties (§ 28-4607), and rulemaking (§ 28-4608) — all on top of federal CROA.

Read the statute itself before you launch — credit services acts are short, and the contract and cancellation sections translate directly into your paperwork. Where this page and the statute ever disagree, the statute in force wins.

What must a District of Columbia credit repair contract include?

Start with the CROA baseline that applies everywhere: the services to be performed, the timeframe, the total cost, your business name and address, and a conspicuous three-business-day cancellation notice — plus the separate written consumer-rights disclosure delivered before signing. Then add every contract element D.C. Code ch. 46 requires on top.

Two District rules routinely catch operators. First, § 28-4605 gives the consumer 5 calendar days from signing to cancel — longer than CROA’s three business days — with reimbursement due within 10 days of receiving the notice by personal delivery or certified mail. Second, § 28-4603 restricts use of the word “repair” in a way that implies immediate correction or rehabilitation of the consumer’s credit problem, which is a naming and advertising constraint, not just a contract one. The pre-contract statement must also cover the consumer’s Fair Credit Reporting Act file-review and dispute rights, a complete and detailed description of the services and total charges, and your bond or trust account details.

A contract missing a required element is void under CROA — which means unrecoverable fees and liability exposure. Our guide to credit repair contracts under CROA walks through each required clause; read it alongside the statute’s own contract section.

Do federal CROA and TSR rules still apply in the District of Columbia?

Yes — always. The federal Credit Repair Organizations Act applies in all 50 states and the District of Columbia: written contract with required contents, a three-business-day cancellation right, no fees before services are performed, no guaranteed outcomes, and a mandatory consumer-rights disclosure. The Telemarketing Sales Rule adds an advance-fee ban when you sell credit repair by phone.

State statutes layer on top of this federal floor; they never replace it. When a state rule and a federal rule differ, follow the stricter one. The full federal picture is covered in credit repair laws every business owner must know and our practical CROA compliance guide.

What is the safest launch checklist for the District of Columbia?

Read the statute and CROA, register your entity, complete any state licensing, registration, and bond filing, adopt contracts satisfying both state and federal requirements, set a fees-after-performance billing model, and only then market to District of Columbia consumers. Sequence matters: filings and contracts come before your first client, not after.

Read D.C. Code §§ 28-4601 to 28-4608 and the federal CROA together.
Register your entity and get an EIN — the full sequence is in our hub on how to start a credit repair business.
File the § 28-4602 registration statement and fee with the Mayor, confirm District business licensing with the Department of Licensing and Consumer Protection, and put the § 28-4604 $25,000 bond or trust account in place if you will ever take money before the work is finished.
Adopt CROA-plus-state compliant contracts and disclosures.
Set up billing that charges only after work is performed — see how to charge credit repair fees legally.
Run disputes, tracking, and billing on one system so compliance is enforced by workflow, not memory.

What if my clients live outside the District of Columbia?

Credit services statutes protect the residents of the jurisdiction that enacted them — so the rules that matter are set by where your client lives, not where your desk sits. That matters more here than almost anywhere: a District-based business routinely serves clients across the Maryland and Virginia line, and each of those states applies its own registration, bond, and contract rules to the engagement.

Multi-state businesses typically satisfy the strictest state they serve or decline clients from states where they are not registered. CROA applies everywhere regardless. Check each state before you take the client in our credit repair business license, bond, and registration requirements by state hub.

Credit repair business requirements in other states

Every state sets its own registration, bond, and contract rules. The complete 50-state reference is the credit repair business license, bond, and registration requirements by state hub; the other deep-dive state guides are:

District of Columbia Credit Repair Business FAQ

Do I need a license to start a credit repair business in the District of Columbia?

The District does not issue a dedicated credit repair license, but D.C. Code § 28-4602 requires a consumer credit service organization operating in the District to register with the Mayor by filing a registration statement and paying a $300 fee, then $200 annually before April 2. Federal CROA rules apply on top. Confirm current forms and District business licensing with the Department of Licensing and Consumer Protection.

Does the District of Columbia require a surety bond for credit repair?

Conditionally. D.C. Code § 28-4604 requires a $25,000 surety bond from any consumer credit service organization that charges or receives money before services are complete, or a trust account with a minimum $25,000 balance at a federally insured bank or savings and loan association located in the District. Section 28-4603 makes taking that money without the security a prohibited act.

How long does a District of Columbia client have to cancel?

D.C. Code § 28-4605 lets the consumer cancel within 5 calendar days of signing the contract, with reimbursement due within 10 days of the organization receiving the cancellation notice by personal delivery or certified mail. Federal CROA independently gives three business days, so follow the longer District window.

Can I call my District of Columbia business a credit repair company?

Be careful. D.C. Code § 28-4603 restricts using the word repair in a way that implies immediate correction or rehabilitation of the consumer’s credit problem. That is an advertising and naming constraint on top of the federal CROA ban on guaranteed outcomes, so review your business name, taglines, and ad copy against the statute before you launch.

Where do I check the current District of Columbia requirements?

Read D.C. Code chapter 46 of title 28 on the D.C. Law Library site and confirm the current registration statement, fees, renewal date, and bond procedure with the Department of Licensing and Consumer Protection. Requirements change, so verify against the official source rather than a third-party summary immediately before you launch.

Official District of Columbia sources

Verify every requirement on this page against the jurisdiction’s own publications before you launch:

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This guide is educational information, not legal advice. Statutes, bond amounts, and filing procedures change; verify current requirements with the jurisdiction before launching, and consult a qualified attorney for guidance on your specific business.