Federal Court Temporarily Ceases Operation of Sham Credit Repair Service for Violating Federal Consumer Protection Laws

In a May 6, 2022 press release, the FTC announced a federal court has temporarily ceased the activities of a sham credit repair service, The Credit Game. According to the press release, the operators of The Credit Game engaged in deceptive tactics that violated federal laws including the FTC Act, the Credit Repair Organizations Act (CROA), the Business Opportunity Rule, the Telemarketing Sales Rule (TSR), and the Covid Consumer Protection Act (CCPA). The press release states that The Credit Game operators engaged in the deceptive practices including charging illegal up-front fees, advertising a sham business opportunity to consumers that consisted of reselling the defendants’ unlawful credit repair services, and knowingly filing false identity theft reports with the FTC.

Furthermore, in a May 2, 2022 complaint filed by the FTC against the owners of The Credit Game in Florida’s Middle District Court, the FTC alleges the defendants claimed they can quickly and legally improve consumers’ credit scores to over 780, remove most or all negative items on a consumer’s credit report, and cause a third party’s credit history to appear on the consumer’s credit report. The complaint also alleges that the defendants pitched “credit piggybacking,” in which  a consumer seeking to raise their credit scores pays to be added as an “authorized user” to a credit card account belonging to someone with higher credit, but the consumer does not have actual access to the account or line of credit. Additionally, the May 6 press release states that the FTC also claims that ​​the defendants advertised fraudulent credit repair schemes to consumers, encouraging consumers to invest tax benefits into them. The press release describes one such advertisement titled, “Free Credit Repair From The Government.”

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