Credit Repair Blog

Operation Clean Sweep—The FTC Goes After Several Deceptive Credit Repair Companies

Operation Clean Sweep is a joint effort between the Federal Trade Commission and 24 State agencies, and is a crackdown on deceptive advertising by certain credit repair companies.  The credit repair companies that were sued include companies with names like: “Successful Credit Services” and “Advantage Credit Repair”.  The lawsuits claim that the credit repair companies used deceptive advertising and violated the Credit Repair Organizations Act (CROA) by making false and misleading statements, such as claiming they can substantially improve consumers’ credit reports by removing accurate, negative information from their credit reports. The suits also allege that the defendants violated the CROA by charging an advance fee for credit repair services.

This is great news for you, the consumer.  Credit repair and credit improvement are important (particularly in today’s economy), and it is important that American consumers are not mislead by unscrupulous companies.  We have no idea whether the companies that are named in the suits actually violated the Credit Repair Organizations Act or not, but if they did, we are glad the FTC and the States are looking out for us!

If you would like to see further information about these actions, check out the document shown below—it’s a complaint from one of the lawsuits filed by the FTC in Operation Clean Sweep.