The FTCs complaint alleges that the company preys on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to join a pyramid scheme selling the same worthless credit repair services to others. Cash Made. Getting a lending, a superb rate of interest, an affordable insurance coverage costs and also getting a job can be influenced by what gets on our credit reports. The comments posted on this blog become part of the public domain. Opening at 10:00 AM tomorrow. They provide credit repair work software program which is the most effective software program that helps you construct your very own profitable Credit Repair work Company from your home. Pay your expenses on time. And, the FTC says, in classic pyramid scheme style, FES incentivizes recruiting new agents into the business over selling credit repair services. Defendants and their agents often encourage FES Agents to sponsor new recruits, i.e., if a potential recruit is unwilling to pay the $288 sign-up fee, the FES Agent should pay some or all of those fees on the recruits behalf in order to inflate artificially the original FES Agents downline and qualify the FES Agent for bonuses or other compensation. The FES Protection Plan is a powerful program which encompasses many of our unique financial products. Defendants also claim they will build a positive payment history for consumers by reporting their rental payments to credit reporting agencies, through their Credit My Rent service. But the challengeswithout supporting documentsrarely result in removal of the items, the FTC says. This investment opportunity is, in reality, an illegal pyramid scheme. A higher title corresponds to more money paid out on bonuses. So that reason, my cousins wife, shes a Sales Director right now, she introduced me to the company. Learn about getting and using credit, borrowing money, and managing debt. But the FTC says that the credit repair services that Financial Education Services (FES) offers are a sham and its supposed money-making opportunity is a pyramid scheme. Further, in many instances, the credit building products offered by Defendants do not have the positive impact on the consumers credit score promised by Defendants. In numerous instances, Defendants fail to provide consumers with a Notice of Cancellation form, in duplicate, containing prescribed language concerning consumers three-day right to cancel that consumers can use to cancel the contract. 56. Learn more about your rights as a consumer and how to spot and avoid scams. Opinions in comments that appear in this blog belong to the individuals who expressed them. Rather than defend itself, FES settled with the Atlanta AG's Office. How to Get Out of Debt. In numerous instances, consumers do not realize the earnings promised by Defendants, and many consumers lose money as FES Agents. For example, in YouTube video presentations, Defendants and their agents have made statements such as: 27. For an additional upfront payment of $99 (in addition to the monthly fee), Defendants purport to report 12 months of past rental history. To induce consumers to purchase their credit repair services, Defendants and their agents utilize Internet websites, including ucesprotectionplan.com, united-credit.org, creditmyrent.com, financialeducationservices.com and fesprotectionplan.com, as well as social media sites, such as Facebook, Instagram, and YouTube on which they make deceptive claims regarding their services. Credit Counseling Service Sign Up fesconnect.net More Home Reviews Photos Community About See all Altamonte Springs, FL 32714 505 people like this 522 people follow this (407) 773-4025 Closed now 11:00 AM - 5:00 PM Credit Counseling Service Photos See all Page transparency See all The letters challenge all or most negative items in the clients credit reports. Credit repair is the procedure of repairing poor credit standing that might have deteriorated for a selection of different factors. Defendant VR-Tech, LLC (VR-Tech) is a Michigan limited liability company with its principal place of business at 37735 Enterprise Court, Suite 600, Farmington Hills, Michigan. We wont post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups. Dont fret if you cant obtain a FICO credit rating immediately, due to the fact that you require to have an account thats been opened for a minimum of six months on your credit score report prior to youre eligible for a FICO rating. Defendants Investment Opportunity Is an Illegal Pyramid Scheme. 30. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. FTC goes to court with credit repair business and wins. In other instances, consumers are invited to participate in telephonic conferences, such as Zoom calls or Facebook Live videos. VR-Tech was formed from the merger of three previously incorporated Michigan companies, VR-Tech Data Processing Solutions, LLC, VR-Tech Software Solutions, LLC, and VR-Tech Marketing Group, LLC. The FES Protection Plan is a powerful program which encompasses many of our unique financial products. Defendants inform FES Agents, however, that if they recruit and maintain a certain number of new FES Agents in a month, the next months fee will be waived. The Fair Credit Reporting Act (FCRA) is the law that essentially created the credit repair process back in 1970. CM-Rent transacts or has transacted business in this District and throughout the United States. Title FES Agent. The testimonials include the following statements: 23. To file a detailed report about a scam, go to. When consumers then speak with Defendants representatives over the telephone, the representatives make many of the same deceptive representations included on Defendants websites and social media accounts. At all times relevant to this Complaint, acting alone or in concert with others, he has formulated, directed, controlled, had the authority to control, or participated in the acts and practices set forth in this Complaint. Nothing in the compensation plan requires that some or all of the monthly revenue requirements be met through sales to non-participants. Defendant United Wealth Services, Inc. (United Wealth) is a Michigan corporation with its principal place of business at 37735 Enterprise Court, Suite 600, Farmington Hills, Michigan. The testimonials include the following statements: 42. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts. Now, its been five years since I said YES to FES and my life has truly changed! The Federal Trade Commission has taken action against Financial Education Services and its owners, Parimal Naik, Michael Toloff, Christopher Toloff and Gerald Thompson, as well as a number of related companies, for scamming consumers out of more than $213 million. Rental payments, however, do not factor in FICO Score 8, the FICO score commonly used by lenders. In numerous instances after signing up, Defendants provide new FES Agents with marketing materials necessary for FES Agents to market Defendants credit repair services and recruit additional FES Agents. We are the first millionaires in our family. Federal government websites often end in .gov or .mil. At all times relevant to this Complaint, acting alone or in concert with others, VR-Tech Mgt has marketed and sold credit repair services and investment opportunities to consumers throughout the United States. Defendants explain that FES Agents can earn bonuses when a qualified FES Agent enrolls a new FES Agent who produces a certain minimum of personal revenue within a specific time frame. 32 votes, 14 comments. Another bonus is called the infinity bonus that starts for FES Agents who rise to the sales director level. In numerous instances, these marketing materials contain many of the deceptive statements described in Paragraphs 19-27 and 38-43 above. Im a high school drop out. 49. If you were a little too jolly with your holiday spending, here are some tips to help you pay down your credit card debt. For the second time this month, the FTC has sued a credit repair operation that it says combined fake promises to swiftly and substantially boost peoples credit scores with the offer of a bogus money-making opportunity selling credit repair services. FES was originally incorporated as Credit Education Services, Inc. FES has also done business as American Credit Education Premium Services, American Credit Education Services, United Credit Education Premium Services, United Credit Education Services, United Wealth Education, and VR-Tech Marketing Group. 38. Also, the complaint says, FES doesnt give people important information theyre entitled to by law, including written information about the total cost of its services and its refund and cancellation policies. We expect commenters to treat each other and the blog writers with respect. In addition, the complaint says, FES doesnt give people important information that the Credit Repair Organizations Act (CROA) requires, including signed contracts that disclose the services it will provide, the total cost of its services, and its refund and cancellation policies. Well first of all, because of COVID, I lost my job. If I could show you how to earn a [sic] extra 500-1000 a week in a home based business that you can run in all 50 states would you be willing to hear more information? We wont post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. Defendants Provide Consumers with Deceptive Advertising Materials. At all times relevant to this Complaint, Defendants have maintained a substantial course of trade in or affecting commerce, as commerce is defined in Section 4 of the FTC Act, 15 U.S.C. 44. Never in a million years did we hope or dream that there could be an opportunity that would potentially replace my Six Figure Real Estate income, create a secure lifestyle, an at the same time build a legacy for my family. To become an agent, an individual generally must pay an upfront administrative fee of $199 plus monthly payments of $89. The FTC says that FES, which also does business as United Wealth Services, uses social media, telemarketing, and a nationwide network of sales agents to promote its credit repair services in Spanish and English. Additionally, some FES agents are alleged to have engaged in the following unlawful and deceptive practices: In resolution of these allegations, FES has entered into a settlement with our office requiring it to pay $1 million in civil penalties to the state. In addition, Defendants require consumers who want to become FES Agents to enroll in Defendants credit repair services if they have not already done so, regardless of the prospective FES Agents credit score. The Attorney Generals Office further alleges that FES violated Georgia law by requesting and accepting payment from consumers for its credit repair services before those services were provided. But if you skip down a couple to where J[] G[] is, at Executive Sales Director, shes bringing in over $50,000 a month in business, her and her whole team, shes getting 1% of that. Earn direct commissions for each sale Build a team and earn weekly residual bonuses Qualify for free services and products. In numerous instances, Defendants representatives claim that as a result of Defendants services, consumers credit scores will improve significantly within 30 to 90 days. Defendants representatives explain that they achieve their results by sending manual dispute letters to the credit reporting agencies. We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. Waller FES Credit Repair is a credit repair service where we help our clients plan and manage their financial affairs. Legitimate credit report repair services examine your credit report records for info that should not exist and challenge it on your behalf. When I started in the service I had a low 500 credit score and within six months it jumped to over 700 and I was able to purchase a new Mercedes Benz! At all times relevant to this Complaint, Youth Financial has carried on business for its own profit or that of its members. And what if you did this twice a week? Defendants FES, United Wealth, VR-Tech, VR-Tech Mgt, CM Rent, and Youth Financial (collectively, Corporate Defendants) have operated as a common enterprise while engaging in the unlawful acts and practices alleged below. In one version of the scam, you get a call and a recorded message that says its Amazon. Actual damages are limited to a range of $100 to $1,000. The base fee is $14.95 per month, for which Defendants purport to report one rent payment each month. He is an authorized signatory on many of Defendants bank accounts. For example, in numerous instances, Defendants representatives state that consumers who become FES Agents will make commissions on recruitment of additional consumers to become FES Agents as well as from purchases by consumers of credit repair services. For more information on how the FTC handles information that we collect, please read our privacy policy. Call (516) 943-0681. For example, Defendants and their agents have made the following statements regarding Defendants investment opportunity: 41. (PX24 Att. Defendants compensation plan incentivizes recruiting new FES Agents over selling credit repair services, and few consumers ever realize the promised earnings.. Financial Education Services is a stable company with an A+ rating on bbb.org. Obviously if you did it once a month you could be looking at, hey Im earning about $5,000 a month. Or what if this happened once a week? Fixing credit standing might be as easy as challenging mistaken info with the credit companies. The CFPB this week filed a lawsuit against CreditRepair.com and Lexington Law, which the bureau claims are two of the country's largest credit repair companies, alleging that the companies. When I started my credit score was a 505 and I had 23 derogatory items on my credit reports. 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