“Bogus” credit repair business closed and fined $6.4 million
A Florida federal district court has found a “credit repair” operation in contempt after it continued to operate in spite of a court order that required it to stop promoting its “bogus credit repair products and services”
The Federal Trade Commission (FTC) charged them with a continuing violation of the court order. The defendants were fined $6.4 million by the FTC and they will have to close their “bogus” credit repair business. Many businesses prey on individuals who think they can “repair” their credit and avoid bankruptcy.
The investigation began in 2008, as part of the FTC’s attempt to stop these kinds of operations that deceptively market their services. The FTC noted that they advertised widely and “charged $250 to $270 per person and $450 per couple for purported credit repair services.”
The businesses, BFS Empowerment Financial Services Inc., Help My Credit Now Credit Services Inc., and Kevtrese Enterprises Inc., advertised that they “specialize in erasing bad credit!”
The court found they violated numerous federal laws governing credit repair and debt relief business.
As we tell our clients, in many cases, only bankruptcy can truly eliminate most debts, and business that advertise “magic” solutions to debt relief, are for the most part, frauds designed to fleece customers and provide little or nothing in return.
If you feel overwhelmed by your debt problems, contact a bankruptcy lawyer, who can help you determine the best strategy for real solution.
Source: Federal Trade Commission, “At FTC’s Request, Federal Court Finds Defendants in Contempt for Continuing to Pitch Bogus Credit Repair Services in Violation of Prior Court Order,” November 30, 2012