‘Operation Clean Sweep’
FTC Runs Operation Clean Sweep
On October 23, 2008 the FTC announced an effort to shut down 33 Credit Repair Operations with the assistance of 24 state agencies.
According to the FTC Release:
“In response to thousands of complaints from consumers throughout the nation, the FTC launched ‘Operation Clean Sweep’ with 24 state agencies in 22 states. In the cases announced today, the Commission charged seven operations with violating the FTC Act and the Credit Repair Organizations Act (CROA) by making false and misleading statements, such as claiming they can substantially improve consumers’ credit reports by removing accurate, negative information from their credit reports. The agency also alleged that the defendants violated the CROA by charging an advance fee for credit repair services. The 26 state actions include alleged violations of state laws and the CROA.”
Let something be really clear!
It’s clear from the FTC’s release that the primary issue with the companies being targeted has very little to do with credit repair. Rather, these companies are guilty of poor business practices. In almost every instance, the company being targeted took their client’s money, provided little or no service, and then refused to honor any refund requests. It was for those reasons that consumers complained to the FTC – triggering the “crackdown”.
A credit repair company can never guarantee that they can remove accurate information from consumers credit reports. If credit report repair was so simple, every American could stop paying his bills and simply ‘repair his credit’ when the negative information appears on his credit reports.
Fortunately this is not the case!
A credit repair company can however work with a ‘No Cure, No Pay’ policy. For example, that a customer only pays a fee for Credit Repair Services rendered if positive changes have been made to their credit report(s).
Hiring a credit repair company that can counsel you on how to enhance your credit score after going through a tough economic time is a wise move. Alternatively, there are plenty of free resources that you can utilize to educate yourself and make substantial improvements on your own.
Let this be your own personal choice!
Sources:
FTC Release ‘Operation Clean Sweep’
Fair Credit Reporting Act
Debt Help
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[...] In the cases announced today, the Commission charged seven operations with violating the FTC Act and the Credit Repair Organizations Act (CROA) by making false and misleading statements, such as claiming they can substantially improve … ‘Operation Clean Sweep’ [...]
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OPERATION CLEAN SWEEP HAS HELPED THE HANDFUL OF US THAT ARE NOT AS EDUCATED ON CREDIT REPAIR AGENCIES. I AM GRATEFUL THEY ARE DOING WHAT THEY ARE, IT’S ALSO REFRESHING TO KNOW THAT THERE ARE LEGIT CREDIT REPAIR COMPANIES OUT THERE.
Wow. Now then I know what its does. lol. I’ve been hearing about it but do not fully understand what is so good about it.
If you want to visit my site http://www.chryslerfinancialsite.com.
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