Credit repair scams

Credit repair schemes

The Consumer Financial Protection Bureau (CFPB), June 27, 2017, filed two complaints and proposed final judgments in federal court against Prime Credit, LLC, IMC Capital, LLC, Commercial Credit Consultants (Accurise), Blake Johnson, Eric Schlegel, Park View Law, fka as Prime Law Experts, Inc., and its owner Arthur Barens. What are charges/allegations: charged illegal advance fees for credit repair services, misrepresenting their ability to repair consumers’ credit scores.

Companies and Individuals to Pay More Than $2 Million in Penalties and Relinquished Funds

The CFPB alleges that the companies charged these consumers millions of dollars in illegal advance fees for their services.

credit repair scam

credit repair scam

  • Charged illegal advance fees: Federal law bars telemarketers and certain companies from requesting or collecting fees for credit repair services until certain conditions are met. Specifically, the companies charged consumers fees for an initial consultation to review a consumer’s credit report and set-up fees totaling hundreds of dollars and monthly fees.
  • Failed to disclose limits on “money-back guarantees”
  • Misled consumers about the benefits of their services

In addition to paying the amounts contained in the proposed final judgments, all defendants would be prohibited from doing business within the credit repair industry for five years.

The Bureau also issued a consumer advisory in September 2016 to alert consumers about companies that engage in potentially misleading credit repair services.

About the Author:

Diane L. DrainDiane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.

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*From Diane: This article/blog is available for educational purposes only and does not provide specific legal advice. By using this information, you agree there is no attorney client relationship between you and me, and that this information should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*