Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: TRO issued against credit repair firm allegedly claiming affiliation with FTC, (Mar 27, 2015)
Organizations Mentioned:Bureau of Consumer Protection | FTC Credit Solutions | Federal Trade Commission | First Time Credit Solution Corp.
By Edward L. Puzzo, J.D.
At the request of the FTC, a federal district court in Los Angeles has issued a temporary restraining order (TRO) against the principals of a credit repair company, doing business as “FTC Credit Solutions,” for allegedly claiming an affiliation with the FTC and using this purported affiliation to market bogus credit repair services to Spanish-speaking consumers, the agency has announced. Under the terms of the TRO, the company has temporarily ceased operations and the defendants’ assets are frozen (FTC v. First Time Credit Solution Corp., Civil Action No. CV15-01921-DDP(PJW)).
The FTC alleges that the company, First Time Credit Solution, Corp.—also doing business as FTC Credit Solutions, 1st Consumer Credit USA, and Doctor DeCredito—violated the FTC Act and the Credit Repair Organizations Act (CROA) by misrepresenting that they were affiliated with the FTC, by falsely promising to remove negative information from consumers’ credit reports, and by falsely guaranteeing consumers a credit score of 700 or above within six months or less. The action also named as defendants employees Guillermo Leyes, Jimena Perez, Maria Bernal and Fermin Campos.
The FTC further alleges that the company unlawfully charged consumers fees in advance of providing the promised credit repair services and that the company sent the major credit bureaus letters with false information on behalf of numerous consumers.
“Peddling lies under the name of the Federal Trade Commission to target consumers who are in difficult financial situations is appalling,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This scam used the promise of a fresh start to hurt consumers when they most needed help, so we are pleased the court has taken a first step to ending it for good.”
Companies: First Time Credit Solution Corp.
News: Advertising ConsumerProtection CaliforniaNews