FTC says credit repair operation defrauded customers

The last thing people who turned to Alex Miller Credit Repair for help with was to find themselves in worse financial shape than when they started. But, according to a lawsuit filed by the Justice Department for the FTC, the company took people’s money without delivering on its promises to improve their credit ratings.

The lawsuit says that since 2018, the company, formerly known as Turbo Solutions Inc., and its owner have defrauded people of more than $10.1 million through their fraudulent credit repair program.

According to the lawsuit, the company claims it can remove negative items, such as collection accounts, from people’s credit reports and improve their scores with “credit enhancement products.” But, according to the FTC and the DOJ, the claims are either false or misleading. People don’t see these improvements in their credit scores, even if they pay up to $1,500 in upfront fees. Which, by the way, is illegal for credit repair companies.

The lawsuit also alleges that the defendants used the FTC’s IdentityTheft.gov website to file false identity theft reports. There they claimed that people had negative information about their reports because of identity theft. The complaint also says the defendants failed to give people copies of their contracts and required disclosures, including a statement explaining that people can cancel their contract at no cost within three business days of signing it.

If you are trying to repair your credit, remember that credit repair companies cannot remove exact negative information from your credit report. And anything they can do for you legally, you can do yourself.

If you’re considering hiring someone to help you fix your credit, remember that reputable credit counselors review your overall financial situation before making a plan. They won’t ask you to pay upfront, dispute information on your credit report that you believe is accurate, or tell you to contact the credit bureaus directly. If you have a problem with a credit repair agency, please report it to the FTC and your state attorney general.

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