FTC Cracks Down On Credit Repair Services


Credit card on wheels
Credit: Rashevskyi Viacheslav/Shutterstock.com
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.

In its press release the FTC states: the settlements relate to an FTC complaint filed in June 2019 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.”

Under the terms of the settlements, the defendants are permanently banned from operating or promoting any credit repair service. They also are prohibited from misleading consumers about financial services like credit offerings or debt relief and from further violations of the FTC’s regulations and rules, including the Telemarketing Sales Rule.

To resolve the FTC’s allegations that the defendants’ contracts with consumers had unlawful terms, the settlements also prohibit the defendants from using threats, intimidation, confessions of judgment, and other unfair practices to prevent consumers from exercising their rights to dispute charges.

The settlement with defendants Douglas Filter; Marcio G. Andrade; Grand Teton Professionals, LLC; 99th Floor, LLC; Mait Management Inc.; Demand Dynamics LLC; Atomium Corps Inc. (a Wyoming company); Atomium Corps Inc. (a Wyoming company); and First Incorporation Services Inc. (a Wyoming company) includes a monetary judgment of $9,641,982, which is partially suspended due to an inability to pay. The defendants will be required to give the FTC the contents of a number of bank, investment, merchant, and cryptocurrency accounts.

The settlement with defendant Atomium Corps Inc. (a Colorado company) includes a monetary judgment of $3,256,850, which is partially suspended due to an inability to pay. The defendant will be required to give the FTC the contents of several bank and merchant accounts.

The settlement with defendant Startup Masters NJ Inc. (a New Jersey company) includes a monetary judgment of $929,054, which is suspended due to an inability to pay.

If it is determined that any of the defendants in the settlements misled the FTC about their financial condition, they will be required to pay the full amount of the judgments.

The Commission votes approving the stipulated final orders were 5-0. The FTC filed the proposed orders in the U.S. District Court for the District of Connecticut.
Related Articles
Mark
Mark Your Calendar For The Dallas Auto Show March 18-22
We will have more info for you as we get closer to the Dallas Auto Show, however, I wanted you to get your calendars marked early so you can come see us! We’ll be there LIVE broadcasting the Car Pro S... More ›
The
The Importance Of Checking Your Car’s Belts
The Car Care Council is reminding us about the importance of giving cars the proper TLC to avoid engine trouble and keep them running properly.

One way to keep your vehicle maintained is by ch... More ›
Toyota
Toyota Teams Up To Offer Insurance Based On How You Drive - But Be Careful
This is actually nothing new and it could save you money if you are a super good driver….and if you don’t mind someone tracking your every move. The decision comes down to privacy versus saving money... More ›
2021
2021 Honda Civic Type R Limited Edition Coming to America
Honda Civic Type R fans it’s time to get excited, because the ultimate street-legal track-focused variant of Honda's legendary Civic Type R is headed to America.

Calling it lighter, faster and... More ›
There haven't been any comments left on this blog yet. Be the first to add one!.