Many Americans turn to credit repair before resorting to discussing bankruptcy options with an attorney. One such credit repair company in Montgomery has been shut down by the Attorney General’s office for deceptive and illegal practices.
Scott’s Credit Repair has been closed by Alabama’s Attorney General’s office. A consent judgment dated October 23rd’s background information states that an investigation of alleged violations of the Alabama Deceptive Trade Practices Act by the Defendants in their credit repair and other related financial services for consumers. While there is a consent judgment entered in the case, the agreement states that there is no admission by the Defendants of any violation or wrong-doing.
False Statements Made to Consumers
The alleged violations discovered in the Attorney General’s investigation were that false statements were made to consumers and credit bureaus. Further, allegedly practicing deceptive advertising and defrauding consumers by charging them for services before the work was completed which violated federal law. One example pointed out by the Attorney General’s complaint was if they hired Scott’s Credit Repair, they would be able to buy expensive homes and cars. The advertisement featured a woman pointing at a house and car saying “look what they’ve done for me.” This story was made up according to the complaint. Another allegation in the complaint was that the company was using a practice called “jamming” to credit the illusion of better credit. The company would dispute most if not all negative terms on the consumer’s credit report without any discussion with the consumer on whether it was correct or not. The complaint also stated that the company would simply fabricate stories that the consumer was an identity theft victim without the consumer’s knowledge or consent.
They were also found to be defrauding consumers by charging more than the advertised prices and failing to advise consumers’ their right to cancel within three days as required by federal law. These allegations were denied by Scott’s Credit Repair owners.
To resolve the complaint without any admission of guilt, Scott’s Credit Repair’s owners agreed not engage in the credit repair industry in any form in the State of Alabama and to provide the Attorney General with a list of all current customer’s and a list of any employees of the business within the last year. Finally, Scott’s Credit Repair will have to pay the attorney’s fees incurred by the Attorney General’s office in the amount of $5,000.00.
Have you been involved in a credit repair trap? Please call one of our Bond & Botes attorney’s so we can discuss your financial situation and help you take control of your finances once and for all.
Gail Hughes Donaldson is a Managing Partner of the Bond & Botes Law Offices in Montgomery and Opelika, Alabama. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She’s been helping families work through the bankruptcy process since she started with Bond & Botes back in 1993 as a paralegal. Read her full bio here.