Credit Repair Promoters Face $1 Million Penalty

Credit “Repair” Promoters Face $1 Million Penalty: “August 11, 2003
One of the country�s largest credit-repair operations has agreed to pay more than $1.15 million in consumer redress to settle Federal Trade Commission charges that it violated federal law.
The settlement resolves charges leveled by the FTC against six Michigan-based defendants in a federal court complaint. The defendants, who sell credit-repair services through a multilevel marketing organization, allegedly falsely claimed that they could remove derogatory information from consumers� credit reports, even if that information was accurate and not obsolete.
The defendants purported to do this through the use of a �one-of-a-kind� computer disk that they claimed could search and identify errors in the process used by the credit reporting agencies to enter negative items onto consumers� credit reports. The Commission�s complaint alleges that the defendants� representations about the computer disk are false and deceptive.
�Consumers who find themselves with less than perfect credit histories should be wary of anyone offering a quick fix to the problem,� said Howard Beales, Director of the FTC�s Bureau of Consumer Protection. ‘Mistakes can be corrected, but there is no substitute for time and self-discipline to improve your credit report if the information is accurate.�”

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