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The Consumer Financial Protection Bureau (CFPB):
They are going after credit repair companies that are misrepresenting their ability to repair someone’s credit. In their complaint they are seeking penalties against four credit repair companies totaling $2,000,000.00. The four companies targeted by the CFPB are Prime Credit, IMC Capital, Consumer Credit Consultants and Park View Law.
Per a statement from CFPB Director Richard Cordray:
“Today, the bureau is taking action against companies that charged illegal fees and misled consumers about their ability to fix their credit. We will remain vigilant about protecting consumers from companies that mislead them to turn a dishonest profit.” Credit repair companies are a hit or miss in terms of their usefulness. If you’re considering using one; check their rating with the Better Business Bureau and do some research on the company before moving forward. The CFPB has been very active in going after companies they fell are hurting consumers and/or breaking the law. According to the complaint filed by the CFPB these companies promised to remove “virtually any negative information” from a credit report which according to the CFPB is misleading since it’s illegal to remove accurate negative information. This is important to mortgage lenders
Per the complaint; the CFPB alleges that the companies:
- Charged illegal advance fees. Federal law prohibits telemarketers and certain other companies from requesting or collecting fees for credit repair unless they can meet certain conditions about the delivery of that service. According to the CFPB, the four companies charged “a variety of fees” before they demonstrated that they had achieved the promised results.
- Failed to disclose limits on “money-back guarantees.” While the companies offered money-back guarantees for some services, they didn’t disclose the “significant limits” on those guarantees – including a requirement that the customer had to pay for at least six months of service to be eligible.
- Misled consumers about the benefits of their services. The CFPB alleges that the companies claimed that their services would result in the removal of negative information from customers’ credit reports. They also misrepresented that their services would “result in a substantial increase” to their customers’ overall credit scores, the CFPB said.
JB Mortgage Capital, Inc.:
We have years and years of experience looking at credit reports and from that we’ve gained a fair amount of knowledge about what it takes to repair someone’s credit. If you would like some FREE and potentially helpful advice on how to repair your credit feel free to contact us directly at 1-800-550-5538.
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