Credit Repair Scams – $2 Million for Misleading Consumers & Illegal Fees
Published On: July 3, 2017
CREDIT REPAIR SCAMS – COMPANIES SUED FOR CHARGING ILLEGAL FEES AND MISLEADING CONSUMERS
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.
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.
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