On August 5, 2024, the FTC announced it had filed a proposed settlement with a credit repair company to settle allegations regarding the company’s alleged pyramid scheme.
The FTC alleges “that the [defendant company] preyed on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to join a pyramid scheme selling the credit repair services to others, costing them millions of dollars.”
If entered by the court, the settlement would require the company to cease certain operations whereby customers were told they could make thousands of dollars in income by recruiting others to use the credit repair services. The proposed order also includes a $324,043,888 civil penalty and $12 million in refunds to customers.
The FTC first filed suit against the company in May 2022.