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Debt Settlement Company, Debt Negotiations Associates, Credit Repair Company, and Attorney to Settle FTC Charges

A promoter of credit repair and debt relief services has agreed to settle Federal Trade Commission charges that he deceived consumers into paying thousands of dollars based on false promises that he could help solve their credit and debt problems with debt settlement and credit repair services.

According to the FTC, the promoter falsely told consumers he could improve their credit reports by removing negative information such as judgments, foreclosures, tax liens, bankruptcies, repossessions, and child support delinquencies, from the reports regardless of how old or accurate the information is. The FTC’s complaint also alleged that he and his lawyer falsely told consumer reporting agencies, as a reason to dispute negative items, that consumers were identity theft victims.

The FTC complaint charged that the marketer, Sam Tarad Sky, and his companies illegally charged consumers up to $2,199 before performing any services and failed to tell customers they could cancel the contract within three business days.

He also falsely told consumers who bought debt settlement services that they could satisfy their debt by paying much less than the full amount owed, such as 30 cents on the dollar.

The proposed settlement order against Sky and his companies bars them from deceiving consumers about any credit repair or financial good or service, and requires them to back up any debt relief claims they make, inform consumers that they have a right to cancel, and tell past clients how to have their escrowed funds returned from NoteWorld.

The order against Sky’s attorney, Kurt A. Streyffeler, and Streyffeler’s law firm, Kurt A. Streyffeler, P.A., bar them from misrepresenting any credit repair or financial good or service, and from violating the Credit Repair Organizations Act. All of the defendants are barred from selling or otherwise disclosing customer information.

The orders impose judgments of almost $2.5 million against Sky, Credit Restoration Brokers LLC, and Debt Negotiations Associates LLC, and $100,000 against Streyffeler and his law firm. The judgments will be suspended because of their inability to pay. The full judgments will become due immediately if they are found to have misrepresented their financial condition.

The Commission vote to authorize the complaint and stipulated final orders for filing was 4-0. The documents were filed in the U.S. District Court for the Middle District of Florida, Fort Myers Division.

Debt Settlement Company, Debt Negotiations Associates, Credit Repair Company, and Attorney to Settle FTC Charges by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • http://www.cicreditrepair.com Scott @ Credit Repair Services

    Settling your credit card debt is like getting a chance for a new beginning. This is like going back to the days when you were stress free and debt free.

    If you cannot do it alone, then don’t hesitate to ask for help from experts, just make sure that these are people you can really trust. Ask for referrals from friends; or do some background check on your own. Be wary of companies that offer you an overnight solution because that is just out of the question.

    There are so many agencies that could really help you out and not overcharge you for their services. In fact, with these good companies, you get more than what you are paying for. Credit card debt settlement is easy if you have the right company to do it for you, so choose well. And when you are done, make sure you don’t take the nightmarish road and do the same mistakes over and over again.

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