Texas Credit Repair Company Accused of Wrong Doing
Posted on October 27, 2011
The Federal Trade Commission has sued a Texas company for charging fees to customers before services were rendered.
The lawsuit filed by the Federal Trade Commission alleges that the Texas company, RMCN Credit Services, has been unlawfully charging prospective clients credit repair service fees before any work is performed. The FTC filed the lawsuit as part as their renewed effort to cut down on credit repair companies and their associated scams.
The FTC has been working to ensure that consumers who are undergoing financial problems are not being victimized by so-called credit repair service companies. The agency found that RMCN Credit Services were charging consumers a retainer fee that went as high as $2,000 for some clients. The retainer fee went towards fees to cover with credit repair help.
The RMCN retainer fee was a direct violation of federal laws that do not allow credit repair agencies to collect any kind of fee without first performing specified credit repair services. The FTC found the Texas company to be charging the retainer fee to clients upfront before work was completed on behalf of the client.
Credit repair agencies have long been associated with unfair fees and practices. Many agencies continue to promote services to repair a consumer’s credit score that are not even possible and are oftentimes illegal. Consumers are strongly encouraged to seek out reputable service providers when attempting to repair credit mistakes and improve current credit scores. Any company who asks for fees upfront before services are rendered should be reported to the FTC and consumers are advised to look elsewhere for assistance.
Consumers interested in repairing their existing credit scores should be well informed of their rights concerning credit repair and debt elimination before hiring any company to perform credit/financial work on their behalf.
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