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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)

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)

A company that sold telephones and telephone services through retailers nationwide has been barred from failing to provide the rebates it promised to consumers in a timely manner. The Federal Trade Commission charged the company with deceptive marketing by promising consumers they would receive their rebates within eight weeks of submitting properly completed forms. In reality, tens of thousands of consumers did not receive their rebates within the time promised, and some had to wait up to a year or more for their checks.

According to the Commission’s complaint, American Telecom Services, Inc. (ATS), based in Atlanta, Georgia, offered numerous rebates to consumers as part of its business as a distributor of telephones and phone services. The company has sold both traditional and Internet phones bundled with communications services.

Offering mail-in rebates ranging in value from $5 to $50 for its “Pay ‘N Talk” program, ATS has used third-party fulfillment houses to process and pay rebate requests received from consumers who bought its products. The FTC contends that the company misrepresented that consumers who bought eligible ATS products would receive their rebate checks within eight weeks after the company received their properly completed rebate requests.

Since 2006, however, the Commission alleges that tens of thousands of consumers who filled out their rebate request forms correctly and submitted them on time experienced substantial delays in receiving their rebate checks, including, in some cases, delays of a year or more. According to the complaint, the delays stemmed from ATS’s inability to pay its third-party rebate fulfillment houses, as well as its refusal to pay fulfillment houses with which it had disagreements over rebate-related issues.

The proposed consent order prohibits ATS from misrepresenting the time in which any rebate will be mailed and from failing to provide any rebate within the time it specifies – or within 30 days if no time is specified in the offer. It also prohibits ATS from misrepresenting any material terms of any rebate program, including the status of the rebate or reasons for delay in providing a rebate. The order also contains record-keeping and reporting provisions designed to ensure ATS’s compliance with its terms.

The Commission vote authorizing the issuance of the complaint and to accept the administrative consent agreement for public comment was 4-0. A copy of the agreement containing consent order will be published in the Federal Register shortly and will be subject to comment for 30 days, starting today and continuing until April 9, 2009. Comments should be sent to: FTC, Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580.

NOTE: The Commission authorizes the filing of 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 respondent actually has violated the law.

NOTE: A consent agreement is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of $16,000.

Copies of the documents related to this case 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, D.C. 20580. 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.

(ATS.final.wpd)
(FTC File No. 082-3114)

A company that sold telephones and telephone services through retailers nationwide has been barred from failing to provide the rebates it promised to consumers in a timely manner. The Federal Trade Commission charged the company with deceptive marketing by promising consumers they would receive their rebates within eight weeks of submitting properly completed forms. In reality, tens of thousands of consumers did not receive their rebates within the time promised, and some had to wait up to a year or more for their checks.

According to the Commission’s complaint, American Telecom Services, Inc. (ATS), based in Atlanta, Georgia, offered numerous rebates to consumers as part of its business as a distributor of telephones and phone services. The company has sold both traditional and Internet phones bundled with communications services.

Offering mail-in rebates ranging in value from $5 to $50 for its “Pay ‘N Talk” program, ATS has used third-party fulfillment houses to process and pay rebate requests received from consumers who bought its products. The FTC contends that the company misrepresented that consumers who bought eligible ATS products would receive their rebate checks within eight weeks after the company received their properly completed rebate requests.

Since 2006, however, the Commission alleges that tens of thousands of consumers who filled out their rebate request forms correctly and submitted them on time experienced substantial delays in receiving their rebate checks, including, in some cases, delays of a year or more. According to the complaint, the delays stemmed from ATS’s inability to pay its third-party rebate fulfillment houses, as well as its refusal to pay fulfillment houses with which it had disagreements over rebate-related issues.

The proposed consent order prohibits ATS from misrepresenting the time in which any rebate will be mailed and from failing to provide any rebate within the time it specifies – or within 30 days if no time is specified in the offer. It also prohibits ATS from misrepresenting any material terms of any rebate program, including the status of the rebate or reasons for delay in providing a rebate. The order also contains record-keeping and reporting provisions designed to ensure ATS’s compliance with its terms.

The Commission vote authorizing the issuance of the complaint and to accept the administrative consent agreement for public comment was 4-0. A copy of the agreement containing consent order will be published in the Federal Register shortly and will be subject to comment for 30 days, starting today and continuing until April 9, 2009. Comments should be sent to: FTC, Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580.

NOTE: The Commission authorizes the filing of 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 respondent actually has violated the law.

NOTE: A consent agreement is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of $16,000.

Copies of the documents related to this case 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, D.C. 20580. 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.

(ATS.final.wpd)
(FTC File No. 082-3114)

– The FTC has approved an advance notice of proposed rulemaking (ANPR) under the Appliance Labeling Rule for publication in the Federal Register. As detailed in the notice, which will be published soon and is available now on the FTC’s Web site as a link to this press release, Section 325 of the Energy Independence and Security Act of 2007 provides the Commission with the authority to develop and implement energy labeling rules for consumer electronic products, including televisions. Through the ANPR, the FTC is seeking public comment on whether it should require energy use disclosures for televisions and other consumer electronic products, such as personal computers, cable or satellite set-top boxes, stand-alone digital video recorder boxes, and personal computer monitors.

Specifically, the notice describes current energy labeling requirements, presents the FTC’s new authority for consumer electronic products labeling, and requests comments on issues such as the need for labeling; energy use data; reports, studies, or research on labeling; test procedures; format, content, and placement of labels; potential retailer role in labeling; Internet disclosures; comparative information; and reporting requirements. The notice also describes how comments, which must be received by May 14, 2009, may be submitted to the Commission.

The Commission vote approving publication of the Federal Register notice was 4-0. (FTC File No. P094201; the staff contact is Hampton Newsome, Bureau of Consumer Protection, 202-326-2889.)

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 11.2009.wpd)

Despite the musical claims of some TV commercials, the only authorized source to get your free annual credit report under federal law is AnnualCreditReport.com.  To reinforce this message, the Federal Trade Commission is featuring two new videos with their own catchy tunes. Both videos are available at www.ftc.gov/freereports and www.YouTube.com/FTCVideos.

The new videos highlight the differences between AnnualCreditReport.com and those other sites that claim to provide “free” credit reports. Other sites require users to pay hidden fees or agree to additional services. For example, some sites provide a free credit report if you enroll in a new service. If you don’t cancel the service during a short trial period, you’re likely to see membership fees on your credit card statement.

The Fair Credit Reporting Act requires each of the nationwide consumer reporting companies – Experian, TransUnion, and Equifax – to provide a free copy of your credit report, at your request, once every 12 months from AnnualCreditReport.com, a toll-free telephone number, or a mailing address. Details are at www.ftc.gov/freereports. Reviewing your credit report regularly is an effective way to deter and detect identity theft.

The FTC encourages people to post its videos on their own websites or blogs, and provides tools to help them do so. The jingles also are available as 30-second audio public service announcements at www.ftc.gov/freereports.

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.

(Free Credit Videos)

The Federal Trade Commission has announced the speakers for an upcoming two-day international conference titled “Securing Personal Data in the Global Economy.” The conference, which the FTC will host along with two international organizations, takes place March 16 and 17, 2009, and addresses how companies can manage personal data security issues in a global information environment where data can be stored and accessed from multiple jurisdictions.

Co-sponsors of the conference are the Asia-Pacific Economic Cooperation (APEC) forum and the Organisation for Economic Co-operation and Development (OECD). The conference will include a series of moderated panel discussions, and audience participation is encouraged. Admission is free and pre-registration is not required.

The agenda, which can be found as a link to this press release on the FTC’s Web site, includes moderated panel discussions addressing a case study; data security and the law; data security practices in industry; data breach and response best practices; data flows and cross-border conflicts; and a wrap-up discussion on current and future trends. Speakers will join the program from countries across the globe, including Israel, Ireland, France, Germany, Canada, and the United Kingdom. FTC Chairman Jon Leibowitz will present the keynote address on March 16, with welcoming remarks by Anne Carblanc of the OECD and Richard Bourassa of APEC. FTC Commissioner Pamela Jones Harbour will present the keynote address on March 17.

The FTC will accept comments on international data security before and after the conference. Comments may be filed on the conference Web site at http://www.ftc.gov/bcp/workshops/personaldataglobal/index.shtm.

The conference will take place March 16 and 17, 2009, in the FTC’s satellite building at 601 New Jersey Avenue N.W., Washington, DC, shortly after the International Association of Privacy Professionals (IAPP) Privacy Summit is held in the same city. The conference will be webcast.

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.

(Int. Data Sec. FYI)