Credit repair maybe needed for many consumers. With the financial struggles that many Americans have been facing, late pays, judgments, charge offs, and even bankruptcy are now on consumers credit reports. With the need to have near perfect credit to open bank accounts, secure a loan, obtain employment, or to acquire an apartment, bogus credit repair companies are targeting desperate consumers.
Recently two companies, Successful Credit Services, and Lee Harrison Credit Restoration, have been charged with violations of the FTC Act and the Credit Repair Organizations Act. Both companies have settled the FTC charges that were brought against them for wrongly promising that they had the ability to clean up consumers credit reports if an upfront fee was paid. On one of the company’s websites and at real estate investment seminars, they boasted that they had connections and resources with creditors, collection agencies, and credit bureaus, as well as had access to public record suppliers.
The defendants falsely assured that they would be able to remove negative information from credit reports such as late payments, judgments, charge-offs, and bankruptcies. These services were advertised by the defendants by placing ads on the internet and in newspapers.
Successful Credit Services, aka Success Credit Services, was ordered to refrain from collecting additional money from any consumer who paid for services prior to October 16, 2008. For Lee Harrison Credit Restoration, aka Lee Harrison Associates Credit Restoration or Credit Restoration, they were ordered to not take any payments from consumers that purchased their services prior to August 28, 2008.
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