On August 23, 2018, a class action lawsuit was filed against three large credit repair companies. The lawsuit claims that the companies violated the Credit Repair Organizations Act, Credit Services Organization Act, and Consumer Fraud and Deceptive Business Practices Act by engaging in unlawful practices that caused a financial hardship on consumers.
Most notably, the companies are accused of targeting and defrauding low-income consumers with little knowledge of credit matters.
If you feel like you may have been targeted by a credit repair company, contact Attorney Group today. Our consultations are free, confidential and without any obligation on your part. We can help answer your questions, and if you choose to pursue a claim we can connect you with an affiliated consumer protection attorney who can assist you throughout the legal process.
Credit Repair Companies
Credit repair companies typically advertise services to help consumers repair their credit and improve their credit scores by fixing inaccuracies and errors on their reports. Many even promise to help consumers secure better loans.
The concept seems simple. The credit repair companies promise to provide a credit report and score analysis, credit counseling and education, and a detailed breakdown of all negative items found on a customers’ credit report. Then, they claim to send certified letters to the three main credit reporting agencies, Transunion, Equifax, and Experian, to dispute the negative items.
The problems, however, are many. Several companies have charged illegal advance payment fees, failed to perform the tasks they promised, misled consumers about what they could actually accomplish, and more.
The ongoing deceit led to the passage of several federal laws, including the Credit Repair Organizations Act. The well-known abuses even caught the attention of the states, spawning multiple pieces of state legislation restricting credit repair company operations, including in Illinois, where the latest class-action lawsuit was filed.
The two main agencies at the heart of the Illinois lawsuit are National Credit Care Corporation (NCC) and Credit-RX, Inc. (RX).
The plaintiff alleges that these companies charged her a $189 down-payment before they would begin the process of disputing inaccurate items on her report. However, according to federal law, credit repair companies are not allowed to request or require advance payments, until after they can prove that they’ve made genuine improvements to a consumers’ credit report or score. In this case, the down payment was required prior to any work being done on the consumers’ behalf at all.
Once the down payment was made, the plaintiff claims that she did not receive any of the promised services, including credit counseling and a comprehensive credit analysis.
Furthermore, the plaintiff is accusing the companies of forging her signature on letters to the credit bureaus. Many of the letters attempted to dispute accurate accounts. The plaintiff claims that the agencies misled her for months about their actions, charging her monthly fees the entire time, and only sending her vague messages claiming that they were ‘making progress.’
Ultimately, the companies actions did more harm to the plaintiff’s credit report and score and cost her hundreds of dollars out-of-pocket for deceitful and unlawful actions.
Lawyers for the plaintiff anticipate hundreds, if not thousands of consumers will qualify under the class for this lawsuit.
How A Lawsuit Can Help
Consumers who have suffered damages and financial losses due to a credit repair companies’ alleged deceit may be entitled to compensation.
Federal and state laws have strict guidelines for the operations of credit repair companies and offer remedies for consumers who are harmed by their fraudulent and unlawful actions.
The Time You Have To Pursue A Claim Is Limited. Contact Us Today.
For more information, contact Attorney Group. After you contact us, an attorney will follow up to answer questions that you might have. There is no cost or obligation to speak with us, and any information you provide will be kept confidential.
Please note that the law limits the time you have to pursue a claim or file a lawsuit for damages from a deceitful company. If you think you have a case, you should not delay taking action.