FTC Latest Move: Cracking Down on “Credit Repair” Schemes

After thousands of consumer complaints to the FTC about “credit repair” schemes, the FTC began to crack down on these agencies in coordination other agencies such as the U.S. Postal Inspection Service among others.

The businesses in question not only violated the Credit Repair Organizations Act (by requiring prepayment for services), but they also systematically lied to consumers.  Bad Credit B Gone, owned by Joseph Graziola, was charged by the FTC recently for misrepresenting information to consumers, and making misleading and false claims.

The court ruled that Bad Credit B Gone had to pay restitution and fines and could no longer mislead consumers about the company’s ability to remove negative information from a consumer’s credit report that was accurate and within the appropriate time-frame.  ■