The Federal Trade Commission (FTC) has announced that the operators behind a credit repair scheme called The Credit Game face a lifetime ban from the credit repair industry. The ban was announced by the Middle District of Florida the same day through a proposed stipulated order for permanent injunction and monetary relief.
The FTC states it sued The Credit Game and its owners on May 2, alleging that they illegally charged consumers hundreds and even thousands of dollars for credit repair services of little to no value. According to the FTC, the defendants are based in Florida and have operated credit repair schemes since at least 2019, first using the name Wholesale Tradelines before changing to The Credit Game in 2020.
The FTC purports that the defendants provided false information to credit reporting agencies regarding consumers’ credit reports. Further, it alleges the defendants told consumers to “invest” their COVID-19 governmental benefits in The Credit Game’s unlawful services to create their own bogus credit repair scheme. The FTC Argued that the defendants’ conduct is in violation of the FTC Act, the Credit Repair Organizations Act, the Business Opportunity Rule, the Telemarketing Sales Rule, and the Covid Consumer Protection Act
In the FTC’s complaint it asked the court to immediately halt the company’s illegal operations, appoint a receiver, and freeze the defendants’ assets. The Middle District of Florida quickly abided by the request, issuing a temporary restraining order on May 3.
According to the proposed order, which the defendants agreed to, the Randos and their companies are permanently banned from operating or assisting any credit repairs and prohibits them from making claims about the benefits, performance or efficacy of any good or service without sufficient supporting evidence. Further, the order imposes a total monetary judgment of $18,875,613, which is partially suspended based on the defendants’ inability to pay the full amount. Additionally, the order would require the defendants to turn over numerous assets and properties which would be liquidated to provide refunds to consumers harmed by the scam.
The FTC states it filed the proposed order in the Middle District of Florida and it voted 4-0 approving the stipulated final order.
