WASHINGTON– The Federal Trade Commission has obtained an order that halts a credit repair scheme that allegedly bilked consumers out of millions of dollars by falsely claiming they will remove negative information from credit reports, while also filing fake identity theft reports to explain negative items on customers’ credit reports.
A federal judge, at the request of the FTC and the Department of Justice, has issued an injunction against Texas-based Turbo Solutions Inc., which does business as Alex Miller Credit Repair, and its owner Alex V. Miller. In a complaint filed by the Department of Justice on behalf of the FTC, the Commission alleges that Turbo Solutions and Miller operate a deceptive credit repair scheme that claims it can help repair consumers’ credit through a “two-step process,” but often “fails to deliver on its promises.”
Civil Penalties Sought
The FTC alleged the company claims it can remove negative information from consumers’ histories through “advanced disputing” of negative items on a consumer’s credit report and by adding “credit building products” to boost credit scores.
The government is seeking both civil penalties and consumer redress.
According to the FTC, the company’s website and Instagram account, along with Miller and his company, claim, “We Delete Inaccurate and Negative Accounts,” and promise “results in 40 days!.” Consumers who call a phone number listed on the company’s website and Instagram account reach company representatives who often make many of the same false claims including that consumers’ credit scores would be boosted by 50-200 points, a violation of the Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rule (TSR), the complaint alleges.
Additional Allegations
The FTC further alleged that before providing any services, however, the company illegally demands consumers pay a $1,500 fee up front.
Moreover, Miller and his company have allegedly filed false identity theft reports—usually without customers’ knowledge—through the FTC’s identitytheft.gov website and deceptively claimed that negative items on consumers’ credit reports were the result of identity theft, the FTC further stated.
“IdentityTheft.gov is a resource for consumers, not scammers,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Those who abuse this resource by filing fake reports can expect to hear from us.”
CROA Violations
The complaint also alleges that Miller and his company have violated CROA by failing to include disclosures detailing the cancelation policies and failing to provide all consumers with a copy of contracts they are required to sign to obtain the company’s services.
The Commission vote to refer the complaint to DOJ for filing was 4-0. The Department of Justice filed the complaint on behalf of the Commission in the U.S. District Court for the Southern District of Texas, Houston Division.
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