FTC: Customers defrauded by credit repair company
A Houston credit repair company has been ordered by the Federal Trade Commission (FTC) to cease operations following allegations that the company misrepresented and stole from millions of customers, according to a statement Tuesday (March 22).
At the request of the FTC and the Department of Justice (DOJ), a federal judge has issued an injunction against Turbo Solutions Inc., which does business as Alex Miller Credit Repair, and its owner. Alex V. Miller. The complaint seeks both civil penalties and direct losses and consumer penalties.
Alex Miller Credit Repair allegedly made false claims that it would remove negative information from credit reports. Since 2018, the company has defrauded more than $9 million from people through its fraudulent credit repair program, the FTC said.
The company illegally collected up to $1,500 in upfront fees and claimed it would remove negative items, such as collection accounts, from people’s credit reports and boost their scores with “reliability-enhancing products.” credit”.
According to complaintAlex Miller Credit Repair used the FTC’s IdentityTheft.gov website to file false reports of identity theft and claimed that these reports were the reason for negative information about his clients’ accounts.
“IdentityTheft.gov is a resource for consumers, not scammers,” said Samuel Levine, director of the FTC’s Consumer Protection Bureau. “Those who abuse this resource by filing false reports can expect to hear from us.”
The complaint also says the company failed to give people copies of their contracts, failed to provide required information, and never gave its customers a statement explaining that their contract could be canceled free of charge within three working days following its signature.
“Credit repair scams affect consumers who already suffer from low credit scores,” said Senior Assistant Deputy Attorney General Brian M. Boynton, chief of the Justice Department’s Civil Division. “The Department of Justice will use every tool at its disposal to prevent credit repair agencies from engaging in illegal behavior targeting financially vulnerable consumers.”
You can also enjoy: CFPB: Americans trapped in $88 billion medical billing ‘death loop’