FTC Shuts Down Credit Repair Scam that Targeted Spanish-Speaking Consumers
The operators of a bogus credit repair scheme are banned from business as part of a settlement with the Federal Trade Commission (FTC).
Doing business under the name FTC Credit Solutions, the FTC claims that the company and its operators tricked Spanish-speaking consumers into paying thousands of dollars to have their credit repaired.
The company also falsely claimed that they were associated with the government agency, which is against the law. The company also promised consumers that it could remove negative information from their credit reports and guaranteed a credit score of 700 or above within six months or less. Consumers were then charged upfront fees for these services, which never transpired.
Under two agreements, which settle a complaint from earlier this year, four individual defendants will be subject to a $2.4 million fine. Judgements will be suspended, however, for three of the four defendants due to their inability to pay.
All defendants are permanently barred from selling or advertising credit repair services and from deceiving consumers about any good or service they are selling. They are also barred from selling or otherwise benefitting from customer's personal information.