The Consumer Financial Protection Bureau (CFPB) filed suit in federal court yesterday against Prime Marketing Holdings, LLC, (PMH) who operate under the names Park View Credit, National Credit Advisors, and Credit Experts.
The CFPB says a California attorney is the sole owner of the parent company and although registered with the State of California as a credit services organization, violated advance fee regulations.
The CFPB says “PMH requested and received payment for services represented to remove derogatory information from, or to improve, consumers’ credit histories, credit records, or credit ratings.”
And the CFPB complaint says “During the initial sales call, PMH told some consumers that they must pay an initial fee in order to proceed with the consultation.” It is alleged that customers then also had to pay a monthly fee of $89 which would continue till the customer cancelled the contract. A set-up fee may have been charged as well.
It appears from the suit that fees were charged in advance of producing results and that would be a problem under the Fair Credit Reporting Act.
On top of those issues, the complaint alleges the credit repair organizations misrepresented how effective the services were or the results they could actually deliver. The CFPB says, “PMH did not have a reasonable basis for representing that it could remove virtually any negative information from a consumer’s credit report. At times, PMH did not have a reasonable basis for representing that it could get certain items removed from individual consumers’ credit reports. PMH has represented in phone calls with consumers that it substantially raises its customers’ credit scores, often stating that it raises scores by an average of more than 100 points. PMH has also represented that it can raise consumers’ individual credit scores by a significant—and specific—amount. PMH does not have a reasonable basis for representing that it raises scores by an average of over 100 points.”
And then there was the issue of the “money-back guarantee.” The CFPB states guarantee and refunds were difficult to obtain.
You can read the complaint below. or here.
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