Consumer Financial Protection Bureau filed a lawsuit in federal district court against the credit repair company Prime Marketing Holdings alleging it charged consumers illegal advance fees and misrepresented the cost and effectiveness of its services. CFPB is seeking an injunction and refunds of fees to consumers. This company used the names Park View Credit, National Credit Advisors, and Credit Experts.
The company lured consumers with misleading, unsubstantiated claims that it could remove virtually any negative information from their credit reports and could boost credit scores by significant amounts. The company charged consumers a variety of illegal advance fees such as a set-up fee of hundreds of dollars and monthly fees of $89.99 per month.
In sales calls, the company failed to disclose consumers would be charged a monthly. It advertised an illusory money-back guarantee. The company advertised it would be able to get negative entries on consumers’ credit reports removed when in fact they had no way of doing so. They falsely claimed their repair services would, or likely would, result in a substantial increase to consumers’ credit scores.