“At the Federal Trade Commission’s request, a federal court has banned eight companies and their principals from selling credit repair and mortgage relief services, and ordered them to pay more than $7.5 million for deceiving consumers throughout the United States.
In February 2009, the FTC charged seven of the companies and three officers with making false promises that they would improve consumers’ credit scores by removing negative information such as late payments, charge-offs, collections, inquiries, delinquencies, judgments, and accounts discharged in bankruptcy. According to the FTC’s complaint, the defendants charged consumers up to $2,000, including illegally charging an advance payment of $300, and failed to provide written contracts and other materials required by law.
The court order prohibits the credit repair companies and their owners from selling credit repair services, and it bans the loan modification companies and their individual owners from selling mortgage loan modification and foreclosure relief services. The order also prohibits the defendants from misleading consumers about financial goods and services, such as loan terms or rates, how much a consumer will save by enrolling in a debt relief service, and credit terms other than those a lender actually offers. The order also bars the defendants from misleading consumers about any good or service, such as refund terms, government affiliation, and total cost.”
The credit repair defendants are:
United Credit Adjusters, Inc., doing business as United Credit Adjustors and UCA
United Credit Adjustors, Inc., d/b/a United Credit Adjusters and UCA
United Counseling Association, Inc., d/b/a UCA
Bankruptcy Masters Corp.
National Bankruptcy Services Corp.
Federal Debt Solutions, Ltd.
United Money Tree, Inc.
Ahron E. Henoch
Ezra Rishty
Gerald Serino
The loan modification defendants are:
The Loan Modification Shop, Ltd., Casey Lynn Cohen, a/k/a Casey Lynn Collins
Ezra Rishty
Source: United States Federal Trade Commission
New Release April 22, 1010
Link: http://www.ftc.gov/opa/2010/04/unitedcredit.shtm