WASHINGTON (8/7/15)--The operators of a bogus credit repair scam that allegedly tricked consumers into paying thousands of dollars will face a monetary judgement from the Federal Trade Commission (FTC) and are banned from offering credit repair services.
The FTC alleges that FTC Credit Solutions claimed affiliation with the government agency and mislead Spanish-speaking consumers about the nature of its services.
The FTC alleged that the First Time Credit Solution, Corp., Guillermo Leyes, Jimena Perez, Fermin Campos and Maria Bernal violated the FTC Act by claiming to be affiliated with or licensed by the agency, falsely promised they could remove negative information from consumers’ credit reports and misled consumers by guaranteeing a credit score of 700 or above within six months or less.
It is also alleged the defendants violated the Credit Repair Organizations Act by making these misrepresentations and charging consumers upfront for credit repair services.
Under the terms of two settlements, the individual defendants will be subject to a monetary judgment of $2.4 million. Leyes will be responsible for the full amount of the judgment.
In the cases of Perez, Campos and Bernal, the judgment will be partially suspended due to their inability to pay. The defendants will be required to surrender the money in their bank accounts.
The settlements also bar the defendants from selling or otherwise benefiting from customers’ personal information.