| Federal Court Shuts Down Bogus Credit Repair Service |
| A Florida-based company has been shut down by a federal court for continuing to advertise phony credit repair services nationwide despite a court order in 2010 requiring it to stop immediately. The court order was secured by the Federal Trade Commission (FTC), which is currently seeking a contempt ruling against Kevin and Latrese Hargrave for violating the original 2010 order. The couple is barred from all activities involving credit repair, and from offering credit-related programs, products or services. The case goes back to 2008, when the FTC filed a complaint against the Hargraves and their firm, Hargrave & Associates, for making false claims on radio stations and online, then charging between $250 to $270 per person and $450 per couple for supposed credit repair services. Clients were required to pay half of the fee upfront. In a radio ad for Hargrave & Associates, the defendants claim that they specialized in erasing bad credit, covering all three credit bureaus. The ad also alleged that a client’s credit could be repaired for just $250. In January 2010, the court ruled in favor of the FTC and barred the defendants from engaging in the deceptive conduct, including making untrue or deceptive statements to persuade consumers to buy their credit repair services. The FTC says that the defendants continued to violate the FTC Act and the Credit Repair Organizations Act through their deceitful credit repair claims. Following a recent hearing, the court entered a preliminary injunction order. The defendants are now banned from engaging in any misleading credit repair offers and their assets have been frozen. While Hargrave & Associated may have been shut down, the FTC warns consumers to beware of similar credit repair companies that exist across the country. The FTC says that these companies target people who have poor credit histories with promises to clean up their credit reports for an often hefty fee. The fact of the matter is that no person or company can legally remove any accurate negative information from your credit report. Time, patience, and smart financial decisions are the only true remedies for a less-than-perfect credit report. All of which are free. |
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