Maybe they thought it would be so easy: grab some dispute letters and invite people to sign up for credit repair.
They figured they could make a bundle of money. Then they had an even more lucrative idea.
Give people the opportunity to start their own businesses, under their umbrella. That way, they would skim profits off multiple credit repair companies.
Soon they were rolling in the dough. They collected $50 million from consumers who signed up. They purchased a mansion and expensive cars.
Then the Feds came investigating.
The Feds label them “a deceptive business opportunity and credit repair scheme.” I have to wonder if they even investigated what the federal and state laws are for operating a credit repair business… ?
The verdict: A judgement for $48,597,538. Wowzers! They have to give up all cash, sell their mansion and cars and turn over all money to be distributed to the victims. (I hope you aren’t one of the victims, but if so, you should get some money back.)
The lesson: don’t start a credit repair business without first learning the laws. Be aware that each state has its own individual laws, and they are not the same. For example, California requires that the client signs certain forms unique to California.
If you would like to read the juicy details about it, see here.
