Resources / Running the business
Pricing Model Comparison: Monthly vs Pay-Per-Delete
How monthly service fees and pay-per-delete pricing differ legally, and the questions to take to counsel.
What is inside
- Why billing timing, not the price point, is the first legal question
- Federal advance-fee rules for credit repair and for phone sales
- A question list to bring to counsel before you publish pricing
Who it is for: Credit repair business owners deciding how to structure and bill their services.
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Questions
Is a monthly fee legal?
A monthly fee is not automatically unlawful. The question is timing: whether any money is collected before the service is fully performed. Ask counsel how 1679b(b) applies to your billing dates.
Is pay-per-delete a safe default?
It is not a safe default. A fee tied to a removal can imply an outcome you cannot promise, can reward disputing accurate items, and on phone sales must meet the TSR's conditions (16 CFR 310.4(a)(2)). Verify with counsel before you use it.
What should I do first?
Map each billing date against the service it pays for, then send that map and your contract to counsel.
SCAIL is software and does not repair credit or promise results. Educational information, not legal advice. Laws change; verify with counsel.