FTC Files Lawsuit Against Credit Repair Organizations for Illegal Upfront Fees and Threatening Consumers with Legal Action

On June 17, 2019, the Federal Trade Commission (FTC) filed a lawsuit against Grand Teton Professionals, LLC, a credit repair organization, and other corporate defendants.

The FTC alleges that Grand Teton Professionals charged illegal upfront fees for credit repair services. It also alleges that the organization threatened legal action against consumers who complained about the lack of results or the illegal upfront fees. The FTC adds in its press release:

The defendants offered consumers the option of financing these substantial fees, but failed to make critical required disclosures. When the defendants processed fees, they routinely engaged in electronic fund transfers from consumers’ bank accounts without obtaining proper authorization. The defendants often used illegal remotely created checks to pay for the credit repair services they offered through telemarketing, according the FTC’s complaint.

The judge granted a temporary restraining order against that ceased defendants’ operations and froze their assets.

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