add to file:
- The FTC has obtained a Temporary Restraining Order (TRO) against Financial Education Services, Inc., its owners, and five other affiliated entities (collectively the “Credit Repair Parties” or “CRPs”) for allegedly operating a pyramid scheme illegal credit repair in violation of the FTC Act, the FTC’s Telemarketing Sales Rule, the Credit Repair Organizations Act, and the Telemarketing Fraud and Abuse Prevention Act the consumption.
- The FTC’s complaint alleges that the CRPs targeted consumers with low credit scores with the false promise that the company could improve their credit scores by removing negative information from credit reports and sending positive information about the ” credit enhancement” to the credit bureaus. According to the FTC, such tactics are rarely successful, and the purported “credit-building” information included rent payment information, which is not usually factored into a consumer’s credit score. The FTC also alleges that the company illegally charges consumers for credit repair services and drives consumers to become “agents” for the company and sell the same ineffective credit repair services to other consumers.
- Under the terms of the TRO, CRPs, which were found to be conducting a joint venture, are not permitted to misrepresent the nature of their credit repair services or disclose customer information to any third party. CRPs are also subject to an asset freeze, record retention, and various forms of cooperation with the FTC, among others.
Popular items from this company
If you would like to know how Lexology can advance your content marketing strategy, please email [email protected].