An operator who charged consumers for services he did not deliver and misrepresented customers’ credit worthiness to the credit reporting agencies has been banned for life from operating a credit repair business. Settlement of the charges also bars further violation of the Federal Trade Commission Act and the Credit Repair Organizations Act (CROA), and requires the defendant to pay $100,000 in civil penalties.

In 1999, Florida Attorney Jack Schrold settled charges that he violated the FTC Act and CROA by making deceptive claims about improving consumers’ credit reports and requiring advance payment for credit repair services. The court order settling these accusations prohibited Schrold from saying he could improve substantially consumers’ credit reports by removing accurate, but negative, information that was verifiable and not obsolete, making false claims about the services he sold, charging consumers before credit repair services were finished, and violating CROA.

In 2004, at the FTC’s request, the Department of Justice initiated civil contempt proceedings against Schrold, alleging that he was violating the 1999 order. Schrold agreed to settle the contempt allegations, and as a result of that settlement the court has entered a modified order against him.

The court order announced today requires Schrold to pay $100,000 in civil penalties and permanently bars him from:

• advertising, marketing, or selling any credit repair service, or assisting others to do so;
  
• violating the FTC Act by representing directly or by implication that he is able to improve substantially consumers’ credit reports by removing negative information from them where such information is accurate, verifiable, and not obsolete; and
  
• violating CROA.

The modified order also contains standard recordkeeping provisions designed to assist the FTC in monitoring Schrold’s compliance.



Consumers should know that its hard to find a credible credit repair companies, we spoke to Ray Salem spokesperson for www.onyxcreditrepair.com a highly rated and regarded credit repair company that is endorsed by the Better Buisness Bureau. "I think its a shame but consumers shouldnt lose confidence, Credit Repair is for real if done right, its just the Bureaus have the FTC in there pocket and dont benefit financially from correcting your credit."