Of course, it’s so much appealing to sign up for a “quick fix” of your credit. However, not all companies are reliable. The Federal Trade Commission (FTC) has recently put an end to a false credit repair scheme. To know more about the case, as well as find a trustworthy and cheap credit repair merchant account, keep on reading the post.
Credit Repair Merchant Account & FTC Against Fake Schemes
The Federal Trade Commission has recently requested a federal court to temporarily freeze Grand Teton Professionals’ assets. The latter scheme has allegedly been charging illegal fees in advance and giving false promises to repair consumers’ credit.
According to the FTC, the defendants, under various trade names, misleading websites, unsolicited emails, and text messages were promising to repair bad credit and delete any negative item from credit reports.
According to the court’s terms of the temporary restraining order, the company has temporarily stopped its operation. The court has frozen the defendants’ assets. Based on the FTC’s and others’ warnings, if companies charge money in advance for credit repair, this is violation of the law.
What about your credit repair business? As you know, no trust, no business. So, it’s critical to work only with a reliable and experienced merchant services provider like First American Merchant to provide only the best to your customers. A true alternative online lending and credit card processing specialist like FirstAmericanMerchant.com can get you the most secure and cheapest credit repair merchant account fast and easily.
FTC Protecting America’s Consumers
The FTC is currently mailing 3.615 checks (making up $708.586) to small businesses, nonprofit organizations, and other consumers who were victimized to overpay for office supplies they hadn’t ordered. The average refund amount makes up $196. Thanks to the FTC’s law enforcement actions, over $2.3 billion were sent to consumers as refunds from July 2017 to June 2018.
In fact, the Federal Credit Repair Organizations Act was enacted in 1996. According to this act, it’s unlawful to lie about what you can do to remove negative items from credit reports or require fees in advance.
When consumers have poor credit scores, they know they can’t get approved for business loans or for favorable terms for these loans. So, in such situations, when a credit repair company says it’s ready to improve their credit, consumers stop thinking clearly.
When it comes to the FTC, as a rule, the organization reviews its rules every 10 years. In today’s world of ever-evolving technology, including the expanded use of education technology, it’s also mandatory to re-examine the COPPA (Children’s Online Privacy Protection Act) Rule.
In fact, in 2017, 1 million children were victimized by identity theft? Many of those cases were the result of fraudulent Credit Privacy Number (CPN) use by a synthetic identity fraudster.
To sum up, FTC is taking measures to stop operators of fake credit repair schemes. If you’re a legal credit repair company, you can grow your business without any fear by working with a reputable payment processing company.Get Started Now