Seven related credit repair companies have been accused by the Federal Trade Commission of luring consumers with deceptive marketing practices, claiming to be able to remove negative information from consumers’ credit reports (“FTC Charges Seven Credit Repair Companies With Deceiving Consumers Throughout the U.S.,” Federal Trade Commission Press Release, March 17, 2009).

In telephone conversations with consumers and in online advertisements, the credit repair companies falsely offered consumers a “100% guarantee” that they could raise consumers’ credit scores and take care of derogatory credit report information, including late payments, collections, charge-offs, delinquencies, and judgments.

The FTC has also charged the credit repair companies with violating the Credit Repair Organizations Act by misrepresenting their services charging in advance for credit repair services and failing to provide consumers with written contracts and disclosures. And when the companies did include those disclosures, they weren’t always written in accordance with the law.

The FTC is seeking restitution for the customers of United Credit Adjusters Inc., which also operated as United Credit Adjustors and UCA, for the customers of United Counseling Association Inc., which also operated as UCA, and for the customers of Bankruptcy Masters Corp., National Bankruptcy Services Corp., Federal Debt Solutions Ltd., and United Money Tree Inc.

Gerald Serino, also known as Jerry Serino, as well as Ahron Henoch and Ezra Rishty face individual charges as the officers or directors of the companies involved.

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