Arkansas AG Files Suit Against Credit Repair Company Over Deceptive Sales Practices

Credit Reporting  •  State AGs

Enforcement_AROn December 21, 2016, the Arkansas Attorney General’s Office (“Arkansas AG”) announced that it had filed a lawsuit in the U.S. District Court for the Eastern District of Arkansas against a Florida-based credit repair company, stemming from allegations that the company made false and misleading representations to consumers.  The Arkansas AG alleged that the company violated the Credit Repair Organizations Act, Arkansas Deceptive Trade Practices Act, and Arkansas Credit Services Organizations Act by falsely promising that if consumers purchased their services, consumers could remove negative, but accurate, items from their credit reports.  The company also allegedly advertised its services by illegally placing signs without permission from property owners.  The complaint seeks civil penalties, restitution, and attorney’s fees and costs.

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