The FTC alleges that the credit repair service deceived consumers by claiming to be affiliated with or licensed by the FTC, and falsely promised that they could remove negative information from consumers’ credit reports.

Credit Repair Scam That Impersonated FTC Gets Shut Down by FTC

Credit Repair Scam That Impersonated FTC Gets Shut Down by FTC

Credit Repair Scam That Impersonated FTC Gets Shut Down by FTCCall it a case of poetic justice: a credit repair scam that falsely claimed to be affiliated with the Federal Trade Commission has been shut down by the very agency it was impersonating.

At the request of the FTC, a federal court has halted the operations of “FTC Credit Solutions.”

The FTC alleges that the credit repair service deceived consumers by claiming to be affiliated with or licensed by the FTC, and falsely promised that they could remove negative information from consumers’ credit reports. The company also falsely guaranteed consumers a credit score of 700 or above within six months or less.

“Peddling lies under the name of the Federal Trade Commission to target consumers who are in difficult financial situations is appalling,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “This scam used the promise of a fresh start to hurt consumers when they most needed help, so we are pleased the court has taken a first step to ending it for good.”

The FTC alleges that the company, along with employees Guillermo Leyes, Maria Bernal, Jimena Perez and Fermin Campos, violated the FTC Act and the Credit Repair Organizations Act (CROA).  They allegedly violated the FTC Act by misrepresenting that they were affiliated with the FTC, by falsely promising to remove negative information from consumers’ credit reports, and by making false promises about improving consumers’ credit scores.

Additionally, the FTC alleges that by charging consumers upfront for credit repair services and misrepresenting their services, the defendants violated the CROA.

 

 

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