When it comes to deceptive business practices, credit card repair is one of the latest examples. In March 2022, the Federal Trade Commission took action against a Texas credit “repair” company called Turbo Solutions Inc. (aka Alex Miller Credit Repair).
The FTC accused the company of bilking consumers for millions of dollars by falsely claiming they could remove negative information from credit reports. Consumers alleged that company representatives told them their credit score could be boosted by 50 to 200 points using their two-step process. They charged consumers a $1,500 upfront fee.
These claims were a violation of the Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rule (TSR).
Regulators accused the company of filing false identity theft reports through a government website as a way to claim that the consumer’s credit report results were invalid because a crime had been committed. The crime was the false identity theft report, which many customers did not know was happening.
Credit companies can decline to remove negative comments on a credit report if they think identity theft has been fraudulently reported. Some consumers complained that their credit score actually went down after working with the credit repair company.
Regulators alleged that the credit repair company also failed to give customers a copy of their contract and failed to disclose cancellation policies.
Texas has laws against deceptive trade practices. It protects consumers from “false, misleading or deceptive acts or practices.” Promising services that cannot be provided, refusing or failing to provide consumers with a business contract … these actions could result in a court case for fraud or misrepresentation.
Under the Texas Deceptive Trade Practices Act, if a consumer prevails in a deceptive trade practices case, they will be compensated for their actual damages and may be awarded twice that amount. If the offending company knowingly deceived the consumer, the award could be three times the actual damages (in excess of $1,000). This is in addition to court costs and attorney’s fees. The Fell Law Firm represents consumers and businesses who have fallen victim to deceptive trade practices in the Dallas-Richardson-Plano area. Ask Mr. Fell can review your situation to see if the actions of the company were fraudulent. Call 972-450-1418 or complete our online contact form to schedule a consultation.