Credit Repair Companies are Under Investigation!

The Federal Trade Commission have mentioned about a nationwide crackdown on credit repair companies. It has also mentioned that thirty companies were being targeted including a Los Angeles company that had its assets frozen. Success Credit Service was charged in an FTC civil suit for infringing the Credit Repair Organizations act by declaring it could rapidly clean up credit reports by eliminating lawful negative items including late payments, tax liens and bankruptcies. The worldwide company Tracy Ballard-Straughn has been charged of illegally collecting thousands of dollars of up-front fees and then doing little or nothing in return. U.S. District Court in Los Angeles has permitted a provisional retaining order for the company and Ballard-Straughn.

The FTC has said that there 6 other credit repair companies that are under investigation and No action has been taken against them yet. However, the Assistant Attorney General said that the state will bring some charges for these alleged companies apart from the FTC action. Shelden has said that they had more complaints and inquiries about credit repair services. He also suggests that banking crisis was probably the foremost reason that has driven more consumers towards credit repair. He also said that people are having hard times to get a lift for their credit scores due to the economic crisis.