RMCN Credit Services, Inc, a Texas based company, has been charged by the FTC for violating the Credit Repair Organizations Act. The company was actually charged with two separate violations:
submitting false statements to credit bureaus, and
charging clients without any services completed.
The company falsely claiming that they could improve their clients’ credit rating by challenging all credit report information, and that credit bureaus must “prove it, or remove it.” They would charge their customers, up-front, about $2000 for a sixth month long process of sending these bureaus false statements written as though they came from the customers themselves.
Thankfully the FTC caught on to their scheme, and put an end to it before they victimized other consumers. In the end, they were charged with a $400,000 fine and a $2.35 million civil penalty.
Credit repair companies are forbidden to charge upfront fees for their services. Both the FTC and the CFPB are actively pursuing companies like RMCN and holding them accountable for their violating the rules of the Credit Repair Organizations Act. However, if you have been victimized, you may be able to recover individually with a private attorney as well. To learn more about your rights as a consumer, Consumer Legal Clinic, a call at 913.371.0727.