FTC Tells U.S. Civil Rights Commission About Efforts to Protect Consumers from Unfair Mortgage Lending Practices

In a statement presented today to the United States Commission on Civil Rights, the Federal Trade Commission described its efforts to protect consumers from unfair, deceptive, and discriminatory practices in the mortgage lending market.

As noted in the statement, since the late 1990s the Commission has focused on the most egregious illegal lending practices of nonbank lenders, particularly in the subprime market, bringing 26 law enforcement actions that resulted in almost $345 million being returned to consumers. The agency also has brought dozens of cases alleging discriminatory lending practices, including the unfair pricing of mortgage loans to minority borrowers.

To help consumers protect themselves, the statement noted, the FTC engages in extensive consumer education, in English and Spanish, about deceptive mortgage advertising, buying a home, mortgage discrimination, and steps for avoiding foreclosure and foreclosure rescue scams. The Commission also engages in research and policy development to enhance its consumer protection abilities. Based on research on mortgage disclosures, for example, the agency has recommended reforming federal mortgage disclosure documents to make them clearer and more useful for consumers.

Noting consumers’ particular vulnerability to unfair and deceptive marketing during a mortgage crisis and economic downturn, the statement expressed the FTC’s commitment to continuing its efforts to identify, prosecute, and prevent unlawful mortgage lending practices, including predatory practices that target minority consumers.

The Commission vote to approve the statement was 4-0.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:

Office of Public Affairs
202-326-2180

(CRCommission)
(FTC File No. P094805)

Related posts:

  1. FTC Staff Testifies in Favor of Effort to Repeal Alaska Laws That Limit Competition in the Health Care Sector
  2. FTC Brings Second Case This Year Against Plastic Lumber Products Marketer For Misleading Environmental Claims
  3. Commission Approves Final Consent Order in Matter of AllCare IPA; FTC Approves Final Consent Order in Matter of King Pharmaceuticals/Alpharma Inc.
  4. FTC Sending Refunds Totaling Over $2 Million to Consumers Harmed by Alleged Government Imposter Scheme

FTC Tells U.S. Civil Rights Commission About Efforts to Protect Consumers from Unfair Mortgage Lending Practices

In a statement presented today to the United States Commission on Civil Rights, the Federal Trade Commission described its efforts to protect consumers from unfair, deceptive, and discriminatory practices in the mortgage lending market.

As noted in the statement, since the late 1990s the Commission has focused on the most egregious illegal lending practices of nonbank lenders, particularly in the subprime market, bringing 26 law enforcement actions that resulted in almost $345 million being returned to consumers. The agency also has brought dozens of cases alleging discriminatory lending practices, including the unfair pricing of mortgage loans to minority borrowers.

To help consumers protect themselves, the statement noted, the FTC engages in extensive consumer education, in English and Spanish, about deceptive mortgage advertising, buying a home, mortgage discrimination, and steps for avoiding foreclosure and foreclosure rescue scams. The Commission also engages in research and policy development to enhance its consumer protection abilities. Based on research on mortgage disclosures, for example, the agency has recommended reforming federal mortgage disclosure documents to make them clearer and more useful for consumers.

Noting consumers’ particular vulnerability to unfair and deceptive marketing during a mortgage crisis and economic downturn, the statement expressed the FTC’s commitment to continuing its efforts to identify, prosecute, and prevent unlawful mortgage lending practices, including predatory practices that target minority consumers.

The Commission vote to approve the statement was 4-0.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:

Office of Public Affairs
202-326-2180

(CRCommission)
(FTC File No. P094805)

Related posts:

  1. FTC Halts Deceptive Mortgage Loan Modification Scheme
  2. FTC Reports to Congress on Credit Report Complaint Referral Program
  3. Policy Planning Director Maureen Ohlhausen To Leave FTC; James Cooper Named Acting Director
  4. FTC Rescinds Guidance from 1966 on Statements Concerning Tar and Nicotine Yields

Undercover Inspections of Funeral Homes in Seven States Ensure that Consumers Receive Price Lists Required by Law

Federal investigators working undercover in seven states during 2008 found significant violations of the Funeral Rule at 26 of 104 funeral homes visited. The Federal Trade Commission, which enforces the Funeral Rule, conducts undercover inspections of funeral homes every year to help ensure compliance and maintain consumer confidence. The Funeral Rule requires funeral homes to give consumers an itemized price list of products and services at the start of a discussion at the home of funeral arrangements, and show them a casket price list before they view any caskets.

Funeral homes found to have significant violations can choose to enter the Funeral Rule Offenders Program (FROP) as an alternative to the prospect of a lawsuit that could lead to a court order and civil penalties. The FROP is a three-year compliance training and monitoring program run by the National Funeral Directors Association (NFDA). Funeral homes that participate in the program make a voluntary payment to the U.S. Treasury in place of a civil penalty, and they pay annual administrative fees to the NFDA.

“Annual undercover investigations serve two purposes,” said Eileen Harrington, Acting Director of the FTC’s Bureau of Consumer Protection. “They help ensure that funeral homes are playing by the Funeral Rule, and they protect consumers, who can shop for a variety of funeral goods and services with confidence. The Rule – and these undercover investigations – make it possible for people to compare prices and buy only those services they want or need.”

FTC inspections during 2008 revealed a mixed compliance record:

  • In Fairbanks and Anchorage, Alaska, two of 11 funeral homes inspected had significant violations; five had minor compliance deficiencies.
  • In Northeastern Arkansas, 11 of 15 funeral homes inspected had significant violations; four had minor compliance deficiencies.
  • In Orange County, California, two significant violations were found among 18 funeral homes inspected; nine had minor compliance deficiencies.
  • In Minneapolis/St. Paul, Minnesota, one of 16 funeral homes inspected had significant violations; seven had minor compliance deficiencies.
  • In Nassau County, New York, two of 18 funeral homes inspected had significant violations; three had minor compliance deficiencies.
  • In Toledo, Ohio, one of 15 funeral homes inspected had significant violations; nine had minor compliance deficiencies.
  • In San Antonio, Texas, seven of 11 funeral homes inspected had significant violations; one had minor compliance deficiencies.

Funeral homes that participate in the FROP program receive compliance training, legal review of price list disclosures required by the Funeral Rule, and regular testing and compliance monitoring. When investigators find minor compliance deficiencies, the funeral home receives a notice requiring it to provide evidence that it has corrected the problem.

In general, the Funeral Rule requires funeral homes to give consumers an itemized General Price List (GPL) at the beginning of an in-person discussion of funeral arrangements, and show them a Casket Price List before they view caskets. The Rule also prohibits funeral homes from requiring consumers to buy any item, such as a casket, as a condition of obtaining any other funeral good or service. By requiring itemized prices, the Rule gives consumers the ability to compare prices among funeral homes and buy only the goods and services they want.

Since the FROP program began in 1996, the FTC has inspected more than 2,150 funeral homes and referred more than 300 funeral homes to the FROP program. In conducting these enforcement sweeps, the agency has benefitted from the assistance of several state attorneys general and the AARP. This year, the FTC wishes to thank Minnesota Attorney General Lori Swanson and her St. Paul staff for their invaluable assistance.

In addition to its law enforcement efforts, the FTC educates consumers in English and Spanish about their rights under the Funeral Rule, and provides guidance to businesses in how to comply. During 2008, the agency responded to requests for more than 100,000 copies of three of these publications: “Paying Final Respects: Your Rights When Buying Funeral Goods & Services,” “Funerals: A Consumer Guide,” and “Complying with the Funeral Rule.” Consumers also have accessed information about the Rule more than 138,000 times during 2008 from the FTC’s Web site, www.ftc.gov.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement
agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(Funeral2008)

Related posts:

  1. FTC Conducts Undercover Inspections of Funeral Homes in Nine States to Press Funeral Homes to Comply with Consumer Protection Law
  2. FTC Files Amicus Brief in U.S. Court of Appeals for the Fifth Circuit in Saint Joseph Abbey v. Castille
  3. Undercover Inspections of Funeral Homes in Nine States and Washington, D.C. Press Funeral Homes to Comply with Consumer Protection Law
  4. Tell Mom You Care About Her Privacy

QVC to Pay $7.5 Million to Settle Charges that It Aired Deceptive Claims

QVC, Inc., a TV home shopping channel and one of the world’s largest multimedia retailers, has agreed to pay $7.5 million to settle Federal Trade Commission charges that it made false and unsubstantiated claims about three types of dietary supplements in violation of an FTC order, and about an anti-cellulite skin cream in violation of the FTC Act.

The agency alleged that QVC violated a 2000 FTC order barring it from making deceptive claims for dietary supplements. According to the Commission, QVC aired approximately 200 programs in which false and unsubstantiated claims were made about For Women Only weight-loss pills; Lite Bites weight-loss food bars and shakes; and Bee-Alive Royal Jelly energy supplements. In addition, the complaint charged that QVC violated Section 5 of the FTC Act by making unsubstantiated claims about Lipofactor Cellulite Target Lotion.

The settlement requires QVC to pay $6 million for consumer redress and a $1.5 million civil penalty. In addition, the settlement expands the prior FTC order and further bars QVC from making unsubstantiated claims that any drug or cosmetic eliminates or reduces a user’s cellulite.

“QVC aired ads that weren’t true and violated an FTC order,” said Eileen Harrington, Acting Director of the FTC’s Bureau of Consumer Protection. “Simply put, we aren’t going to let QVC get away with this. The company is responsible for the product claims made on its programs, and we expect that going forward, QVC will do a better job for its audience and make sure that its programs are truthful and not deceptive.”

The advertisements allegedly included unsubstantiated claims that the weight-loss supplements could cause people to lose significant amounts of weight, maintain their weight loss for a long time, and prevent carbohydrates from being stored as fat; false claims that the weight-loss supplements could prevent dietary fat from being absorbed in peoples’ bodies; unsubstantiated claims that the energy-enhancing supplements could reduce fatigue and increase energy in people with severe fatigue and other physical ailments; and unsubstantiated claims that Lipofactor lotion could reduce cellulite, including measurable decreases in the sizes of individuals’ arms, legs, and abdomens.

The Department of Justice’s Office of Consumer Litigation filed the complaint in federal district court at the FTC’s request in March 2004; attorneys from both agencies worked on the litigation.

The Commission vote authorizing a new settlement order to be filed was 4-0. The U.S. District Court for the Eastern District of Pennsylvania entered the new order on March 4, 2009.

NOTE: A stipulated final order is for settlement purposes only and does not constitute an admission by the defendants of a law violation. A stipulated order requires approval by the court and has the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(Infomercials NR.wpd)
(FTC File No. X04-0057)

Related posts:

  1. Suntasia Marketing Defendants Pay More Than $16 Million to Settle FTC Charges
  2. Mortgage Foreclosure “Rescue” Operators Settle with FTC
  3. Marketers of Mystery Shopper Scam Settle with FTC; Agree to Pay $850,000
  4. Commission Announces Third U.S. Roundtable on FTC at 100: Into Our Second Century

QVC to Pay $7.5 Million to Settle Charges that It Aired Deceptive Claims

QVC, Inc., a TV home shopping channel and one of the world’s largest multimedia retailers, has agreed to pay $7.5 million to settle Federal Trade Commission charges that it made false and unsubstantiated claims about three types of dietary supplements in violation of an FTC order, and about an anti-cellulite skin cream in violation of the FTC Act.

The agency alleged that QVC violated a 2000 FTC order barring it from making deceptive claims for dietary supplements. According to the Commission, QVC aired approximately 200 programs in which false and unsubstantiated claims were made about For Women Only weight-loss pills; Lite Bites weight-loss food bars and shakes; and Bee-Alive Royal Jelly energy supplements. In addition, the complaint charged that QVC violated Section 5 of the FTC Act by making unsubstantiated claims about Lipofactor Cellulite Target Lotion.

The settlement requires QVC to pay $6 million for consumer redress and a $1.5 million civil penalty. In addition, the settlement expands the prior FTC order and further bars QVC from making unsubstantiated claims that any drug or cosmetic eliminates or reduces a user’s cellulite.

“QVC aired ads that weren’t true and violated an FTC order,” said Eileen Harrington, Acting Director of the FTC’s Bureau of Consumer Protection. “Simply put, we aren’t going to let QVC get away with this. The company is responsible for the product claims made on its programs, and we expect that going forward, QVC will do a better job for its audience and make sure that its programs are truthful and not deceptive.”

The advertisements allegedly included unsubstantiated claims that the weight-loss supplements could cause people to lose significant amounts of weight, maintain their weight loss for a long time, and prevent carbohydrates from being stored as fat; false claims that the weight-loss supplements could prevent dietary fat from being absorbed in peoples’ bodies; unsubstantiated claims that the energy-enhancing supplements could reduce fatigue and increase energy in people with severe fatigue and other physical ailments; and unsubstantiated claims that Lipofactor lotion could reduce cellulite, including measurable decreases in the sizes of individuals’ arms, legs, and abdomens.

The Department of Justice’s Office of Consumer Litigation filed the complaint in federal district court at the FTC’s request in March 2004; attorneys from both agencies worked on the litigation.

The Commission vote authorizing a new settlement order to be filed was 4-0. The U.S. District Court for the Eastern District of Pennsylvania entered the new order on March 4, 2009.

NOTE: A stipulated final order is for settlement purposes only and does not constitute an admission by the defendants of a law violation. A stipulated order requires approval by the court and has the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(Infomercials NR.wpd)
(FTC File No. X04-0057)

Related posts:

  1. FTC Extends Deadline to Comment on Proposed Modifications to the Children’s Online Privacy Protection Rule Until September 24, 2012
  2. FTC Sends Refunds to Consumers Allegedly Deceived by First Universal Lending Mortgage Loan Modification Scheme
  3. DC Funeral Home Agrees to Pay $25,000 for Funeral Rule Violations
  4. FTC Alert: Federal Government Not Offering “Free” Money to Pay Your Bills

April 17 Public Hearing in Washington, DC to Focus on Intellectual Property

The Federal Trade Commission today announced the fourth in a series of public hearings exploring the evolving market for intellectual property. These hearings, to be held April 17, 2009, in Washington, DC, will explore how corporations, inventors, and patent intermediaries value and monetize patents, strategies for buying and selling patents, and the role of secondary markets for intellectual property.

Some of the most significant recent changes in markets for intellectual property have occurred through the emergence of new business models involving the buying, selling and licensing of patents. The April 17 hearing also will showcase some of the recent academic scholarship about the development and functioning of markets for intellectual property and the policy implications surrounding them. James E. Malackowski, President and CEO of Ocean Tomo, will deliver the keynote address. An agenda for the hearings is available on the Web site for the hearings and as a link to this press release.

These hearings are part of an ongoing series of public hearings examining changes in patent law, patent-related business models, and new learning about the operation of the IP marketplace since the October 2003 Commission report on the patent system, “To Promote Innovation: The Proper Balance of Competition and Patent Law and Policy.” The Commission held the initial hearing in the series on December 5, 2008, and held hearings on remedies February 11 and 12, 2009. The Commission is holding hearings on March 18-19, 2009, covering the operation of patent markets, with an emphasis on the notice functions of patents. The Commission will hold its last hearing in the series on May 4-5, 2009, in Berkeley, California, in cooperation with the Berkeley Center for Law and Technology.

The Commission is seeking public comments on all issues to be discussed throughout the entire series of these hearings, and in response to any of the topics raised in the Federal Register notice announcing the hearings on the Evolving IP Marketplace. Comments must be received by May 15, 2009, and should refer to “Evolving IP Marketplace – P093900.” The Federal Register notice and information on how to submit written and electronic comments to the Commission are available at the Web site for the hearings, http://www.ftc.gov/bc/workshops/ipmarketplace.

The FTC’s hearings on the Evolving IP Marketplace are free and open to the public. Pre-registration is helpful but not required. All attendees must present a valid photo ID for admission to the agency’s Satellite building, which is located at 601 New Jersey Ave., NW. The hearings will be accessible to people with disabilities. Anyone needing a related accommodation should contact Carrie McGlothlin at the FTC at 202-326-3388 or [email protected]. Such requests should include a detailed description of the accommodations needed and contact information if more information is needed. Please provide advance notice of accommodation needs.

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 13. 2009.wpd)

Related posts:

  1. FTC Corrects Misinformation on Journalism Workshops and “Discussion Draft”: Ideas are Compilation, not Recommendations from Agency
  2. FTC Closes its Investigation of Google AdMob Deal
  3. FTC Seeks Public Comments on Solvays Application to Terminate Supply Agreement with Alventia
  4. FTC Puts Conditions on PepsiCo’s $7.8 Billion Acquisition of Two Largest Bottlers and Distributors

April 17 Public Hearing in Washington, DC to Focus on Intellectual Property

The Federal Trade Commission today announced the fourth in a series of public hearings exploring the evolving market for intellectual property. These hearings, to be held April 17, 2009, in Washington, DC, will explore how corporations, inventors, and patent intermediaries value and monetize patents, strategies for buying and selling patents, and the role of secondary markets for intellectual property.

Some of the most significant recent changes in markets for intellectual property have occurred through the emergence of new business models involving the buying, selling and licensing of patents. The April 17 hearing also will showcase some of the recent academic scholarship about the development and functioning of markets for intellectual property and the policy implications surrounding them. James E. Malackowski, President and CEO of Ocean Tomo, will deliver the keynote address. An agenda for the hearings is available on the Web site for the hearings and as a link to this press release.

These hearings are part of an ongoing series of public hearings examining changes in patent law, patent-related business models, and new learning about the operation of the IP marketplace since the October 2003 Commission report on the patent system, “To Promote Innovation: The Proper Balance of Competition and Patent Law and Policy.” The Commission held the initial hearing in the series on December 5, 2008, and held hearings on remedies February 11 and 12, 2009. The Commission is holding hearings on March 18-19, 2009, covering the operation of patent markets, with an emphasis on the notice functions of patents. The Commission will hold its last hearing in the series on May 4-5, 2009, in Berkeley, California, in cooperation with the Berkeley Center for Law and Technology.

The Commission is seeking public comments on all issues to be discussed throughout the entire series of these hearings, and in response to any of the topics raised in the Federal Register notice announcing the hearings on the Evolving IP Marketplace. Comments must be received by May 15, 2009, and should refer to “Evolving IP Marketplace – P093900.” The Federal Register notice and information on how to submit written and electronic comments to the Commission are available at the Web site for the hearings, http://www.ftc.gov/bc/workshops/ipmarketplace.

The FTC’s hearings on the Evolving IP Marketplace are free and open to the public. Pre-registration is helpful but not required. All attendees must present a valid photo ID for admission to the agency’s Satellite building, which is located at 601 New Jersey Ave., NW. The hearings will be accessible to people with disabilities. Anyone needing a related accommodation should contact Carrie McGlothlin at the FTC at 202-326-3388 or [email protected]. Such requests should include a detailed description of the accommodations needed and contact information if more information is needed. Please provide advance notice of accommodation needs.

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 13. 2009.wpd)

Related posts:

  1. FTC Approves Final Order Settling Charges that Novartis AG’s Proposed Acquisition of Fougera Holdings, Inc. was Anticompetitive
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  3. FTC Testimony Expresses Concern that Owners of “Standard-Essential” Patents May Obtain Injunctions Enabling Them to Hold Up Other Firms
  4. FTC Places Conditions on CoStar’s $860 Million Acquisition of LoopNet

FTC Charges Seven Credit Repair Companies with Deceiving Consumers Throughout the U.S.

The Federal Trade Commission has charged seven related companies with violating federal law by falsely promising to remove negative information from consumers’ credit reports, even information that is accurate and current, and by charging an up-front fee and failing to provide written disclosures. The agency seeks to make them stop the violations and pay restitution to consumers.

According to the FTC, the defendants charge consumers up to $2,000, including $300 in advance, promising to improve credit scores by removing information such as late payments, charge-offs, collections, inquiries, delinquencies, judgments, and accounts discharged in bankruptcy. Their promotions include an ad on a third-party Web site stating, “100% Guarantee to raise your credit score!” Transcripts from telephone calls with consumers include statements such as, “I can’t tell you much because I’ll be giving you my trade secrets, but I can definitely guarantee that we’ll take care of anything that’s derogatory on her credit report. It’s all legal.”

In addition to facing deceptive marketing charges under the FTC Act, the defendants are charged with violating the Credit Repair Organizations Act by misrepresenting their services; charging in advance for credit repair services; and failing to provide consumers with written contracts and other materials that contain written disclosures required by law or deviating from the required wording for the disclosures.

The defendants are United Credit Adjusters Inc., doing business as United Credit Adjustors and UCA; United Credit Adjustors Inc., d/b/a United Credit Adjusters and UCA; United Counseling Association Inc., d/b/a UCA; Bankruptcy Masters Corp., National Bankruptcy Services Corp., Federal Debt Solutions Ltd., United Money Tree Inc., and Ahron E. Henoch, Ezra Rishty, and Gerald Serino, also known as Jerry Serino. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the District of New Jersey.

The FTC advises that only time, a conscious effort, and a personal debt repayment plan can improve your credit report. The first step is to learn what information is in your creditreport. If you find errors or mistakes, federal law gives you the right to have them corrected – free of charge. Federal law requires that the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – provide you with a free copy of your credit report once every 12 months, if you ask for it. To order your free report, visit annualcreditreport.com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Credit repair information is available in “Credit Repair: Self-Help May Be Best,” at www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(United Credit Adjusters)
(FTC File No. 0823211)

Related posts:

  1. FTC Extends Deadline to Comment on Proposed Modifications to the Children’s Online Privacy Protection Rule Until September 24, 2012
  2. FTC Sends Refunds to Consumers Allegedly Deceived by First Universal Lending Mortgage Loan Modification Scheme
  3. DC Funeral Home Agrees to Pay $25,000 for Funeral Rule Violations
  4. FTC Alert: Federal Government Not Offering “Free” Money to Pay Your Bills

FTC Charges Seven Credit Repair Companies with Deceiving Consumers Throughout the U.S.

The Federal Trade Commission has charged seven related companies with violating federal law by falsely promising to remove negative information from consumers’ credit reports, even information that is accurate and current, and by charging an up-front fee and failing to provide written disclosures. The agency seeks to make them stop the violations and pay restitution to consumers.

According to the FTC, the defendants charge consumers up to $2,000, including $300 in advance, promising to improve credit scores by removing information such as late payments, charge-offs, collections, inquiries, delinquencies, judgments, and accounts discharged in bankruptcy. Their promotions include an ad on a third-party Web site stating, “100% Guarantee to raise your credit score!” Transcripts from telephone calls with consumers include statements such as, “I can’t tell you much because I’ll be giving you my trade secrets, but I can definitely guarantee that we’ll take care of anything that’s derogatory on her credit report. It’s all legal.”

In addition to facing deceptive marketing charges under the FTC Act, the defendants are charged with violating the Credit Repair Organizations Act by misrepresenting their services; charging in advance for credit repair services; and failing to provide consumers with written contracts and other materials that contain written disclosures required by law or deviating from the required wording for the disclosures.

The defendants are United Credit Adjusters Inc., doing business as United Credit Adjustors and UCA; United Credit Adjustors Inc., d/b/a United Credit Adjusters and UCA; United Counseling Association Inc., d/b/a UCA; Bankruptcy Masters Corp., National Bankruptcy Services Corp., Federal Debt Solutions Ltd., United Money Tree Inc., and Ahron E. Henoch, Ezra Rishty, and Gerald Serino, also known as Jerry Serino. The Commission vote to authorize staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the District of New Jersey.

The FTC advises that only time, a conscious effort, and a personal debt repayment plan can improve your credit report. The first step is to learn what information is in your creditreport. If you find errors or mistakes, federal law gives you the right to have them corrected – free of charge. Federal law requires that the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – provide you with a free copy of your credit report once every 12 months, if you ask for it. To order your free report, visit annualcreditreport.com, call 1-877-322-8228, or complete and mail the Annual Credit Report Request Form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Credit repair information is available in “Credit Repair: Self-Help May Be Best,” at www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(United Credit Adjusters)
(FTC File No. 0823211)

Related posts:

  1. FTC Extends Deadline to Comment on Proposed Modifications to the Children’s Online Privacy Protection Rule Until September 24, 2012
  2. FTC Sends Refunds to Consumers Allegedly Deceived by First Universal Lending Mortgage Loan Modification Scheme
  3. DC Funeral Home Agrees to Pay $25,000 for Funeral Rule Violations
  4. FTC Alert: Federal Government Not Offering “Free” Money to Pay Your Bills

Commission Approves Final Consent Order in Matter of Getinge AB and Datascope Corp.

For Your Information

– Following a public comment period, the Commission has approved a final consent order in the matter of Getinge AB and Datascope Corp. The vote approving the final order was 3-0, with Commissioner Pamela Jones Harbour recused. (FTC File No. 091-0000; the staff contact is David L. Inglefield, Bureau of Competition, 202-326-2637; see press release dated January 29, 2009, at http://www.ftc.gov/opa/2009/01/getinge.shtm.)

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 12.2009.wpd)

Contact Information

MEDIA CONTACT:
Office of Public Affairs
202-326-2180

Related posts:

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