Feds Take on 'Credit Repair' Cos.
Jul. 28, 1998
BOSTON (AP) _ Four Massachusetts companies have been ordered to stop claiming they can repair consumers' credit ratings for a fee.
The four cases are the first to be result in injunctions since the Federal Trade Commission filed complaints against 30 companies nationwide in March, said FTC lawyer John Dugan said Monday.
Customers were led to believe they could have bankruptcies, foreclosures or other negative information expunged from their records for fees ranging from $400 to $600, said Tony Rodriguez, an assistant attorney general.
In reality, no one can erase negative credit information if it is accurate and current, the FTC said. Consumers can correct inaccurate credit reports at little or no cost.
The injunction bars the companies from taking any money in advance from customers, misrepresenting that they can improve consumers' credit reports or profiles, and misrepresenting that they can remove unwanted or disputed entries from credit reports.