{"id":31568,"date":"2022-06-01T04:30:43","date_gmt":"2022-06-01T04:30:43","guid":{"rendered":"https:\/\/harchi90.com\/ftc-shuts-down-credit-repair-pyramid-scheme-financial-education-services-which-bilked-more-than-213-million-from-consumers\/"},"modified":"2022-06-01T04:30:43","modified_gmt":"2022-06-01T04:30:43","slug":"ftc-shuts-down-credit-repair-pyramid-scheme-financial-education-services-which-bilked-more-than-213-million-from-consumers","status":"publish","type":"post","link":"https:\/\/harchi90.com\/ftc-shuts-down-credit-repair-pyramid-scheme-financial-education-services-which-bilked-more-than-213-million-from-consumers\/","title":{"rendered":"FTC Shuts Down Credit Repair Pyramid Scheme Financial Education Services, Which Bilked More Than $ 213 Million from Consumers"},"content":{"rendered":"
The Federal Trade Commission has taken action against Financial Education Services and its owners, Parimal Naik, Michael Toloff, Christopher Toloff and Gerald Thompson, as well as a number of related companies, for scamming consumers out of more than $ 213 million.<\/p>\n
In response to a complaint filed by the FTC, a federal court has temporarily shut down the sprawling bogus credit repair scheme. The FTC’s complaint alleges that the company preys on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to join a pyramid scheme selling the same worthless credit repair services to others. <\/p>\n
\u201cThese defendants collected millions in junk fees as part of a pyramid scheme that peddled phony credit repair products,\u201d said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We are pleased that the court shut down this operation and froze its assets, and we will continue to pursue firms that prey on families’ economic pain.”<\/p>\n
According to the FTC’s complaint, Michigan-based Financial Education Services, also doing business as United Wealth Services, has operated its scheme since at least 2015. The company claims to offer consumers the ability to remove negative information from credit reports and increase credit scores by hundreds of points, charging as much as $ 89 per month for their services. Their techniques, according to the complaint, are rarely effective and in many instances harm consumer’s credit scores.<\/p>\n
The FTC’s investigation found that the company’s scheme combines charging consumers for these worthless credit repair services with a hard sell to join a pyramid scheme that consists of selling the worthless services to more consumers. The complaint alleges that the company’s practices violate the FTC Act, the Credit Repair Organizations Act, and the Telemarketing Sales Rule. Specifically, the agency alleges that the defendants:<\/p>\n
The complaint alleges that the company also illegally used false information in the process of selling their credit repair and investment opportunities to acquire consumers’ banking and other financial information.<\/p>\n
The Commission vote authorizing the staff to file the complaint and request for temporary restraining order was 4-0. The complaint was filed in the US District Court for the Eastern District of Michigan.<\/p>\n
The FTC appreciates the assistance of the Georgia Office of the Attorney General Consumer Protection Division in bringing this case.<\/p>\n
NOTE<\/b>: The Commission files a complaint when it has \u201creason to believe\u201d that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
The Federal Trade Commission has taken action against Financial Education Services and its owners, Parimal Naik, Michael Toloff, Christopher Toloff and Gerald Thompson, as well as a number of related companies, for scamming consumers out of more than $ 213 million. In response to a complaint filed by the FTC, a federal court has temporarily …<\/p>\n