Defendants in FTC Credit Repair Scheme Case Agree to Settle Charges

The operators of a bogus credit repair scheme are banned from the credit repair business and subject to a wide array of other requirements under settlement terms with the Federal Trade Commission.

The settlements relate to an FTC complaint filed in June 2019[1] alleging that the defendants targeted consumers with false promises of substantially improving consumers’ credit scores by claiming to remove all negative items and “hard” credit inquiries (which can often change a consumer’s credit score) from consumers’ credit reports. In addition, the FTC alleged the defendants illegally charged upfront fees for their services and advised consumers to mislead credit bureaus and lenders, as well as threatening consumers with lawsuits when they complained or disputed charges.

“These companies promised to clean up people’s credit, but failed to deliver,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “If anyone says they can remove accurate and current information from your credit report, that’s probably a credit repair scam.”

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