Beware of Scams by Credit Repair Companies

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Almost everyone knows someone who is struggling with credit problems.  Sometimes, people turn to companies that offer “credit repair services” for help.  If you know someone who is thinking about using one of these companies, tell them to be careful.  Over the years, we have seen some of our clients ripped off by so-called “credit repair companies.”

For example, the FTC (Federal Trade Commission) recently sued and closed down one of these companies.  The name of this “credit repair company” was the “First Time Credit Solution, Corp.” On August 4, 2015, the FTC issued the following news release:

“The operators of the bogus credit repair scheme that allegedly tricked consumers into paying thousands of dollars each to supposedly improve their credit will be banned from offering credit repair services and subject to a monetary judgment of $2.4 million dollars”

“The FTC alleged that the defendants, First Time Credit Solution, Corp., violated the FTC Act by falsely promising they could remove negative information from consumers’ credit reports, and guaranteeing consumers a credit score of 700 or above within six months or less.”

“These defendants were shameless. They scammed consumers who were in need of financial help…,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “I’m pleased these defendants will be kept away from this business for good.”

We hope you found this consumer alert to be helpful.  And, as always, if you know someone who is struggling with overdue debts, bankruptcy may help them. Please have them call us for a free consultation at 212-315-3755.