Every so often, you come across a snake oil salesman who professes to have a super secret dispute letter that will remove all negative items off of your credit reports. Defendant United Wealth Services, Inc. (United Wealth) is a Michigan corporation with its principal place of business at 37735 Enterprise Court, Suite 600, Farmington Hills, Michigan.

At all times relevant to this Complaint, acting alone or in concert with others, he has formulated, directed, controlled, had the authority to control, or participated in the acts and practices set forth in this Complaint. Posted on March 22, 2023 by March 22, 2023 by When I started my credit score was a 505 and I had 23 derogatory items on my credit reports. Even then, its an uphill fight. In numerous instances, Defendants fail to provide consumers with a written statement containing prescribed language concerning Consumer Credit File Rights Under State and Federal Law before any contract or agreement is executed. And, if youre thinking about investing in a business that requires you to recruit other investors, read, Reporting fraud 101: protect your community by reporting scams, Shopping online? Have you heard about it? Multi Level Marketing (MLM) schemes are a drain on our society. By meeting specific requirements, FES Agents can go through a series of promotions from agent, to field trainer, to senior field trainer, to sales director, to regional sales director, to executive sales director, to vice president, to regional vice president, to executive vice president, to senior vice president, to senior regional vice president, to senior executive vice president, and culminating in pinnacle senior vice president. Defendant VR-Tech MGT, LLC (VR-Tech Mgt) is a Michigan limited liability company with its principal place of business at 37735 Enterprise Court, Suite 600, Farmington Hills, Michigan. 43. Further, in many instances, the credit building products offered by Defendants do not have the positive impact on the consumers credit score promised by Defendants. Make smart shopping decisions, know your rights, and solve problems when you shop or donate to charity. For example, FES sends clients form letters to send to credit bureaus to dispute negative items, but the letters dont include supporting documents so they rarely result in removal of the items, the FTC says. In looking up that link, I found a new suit filed in November by a group of UWE agents. Georgia Weapons Carry License Information, Lactation Room Rules and Participation Agreement, Facebook page for Office of Attorney General of Georgia Chris Carr, Twitter page for Office of Attorney General of Georgia Chris Carr, Carr: Illegal Credit Repair Operation to Pay $1M Penalty. It follows the FTCs complaint earlier this month charging The Credit Game and its owners with operating a scam credit repair operation that also pitched a bogus business opportunity. Worked at a call center for over 10 years. I added on the other products they offer which is a secured credit card and CreditMyRent which well discuss in a minute, and my score went from the 610 to the 700. To become a senior field trainer, in addition to an increase in the dollar amount of monthly revenue, the FES Agent needs to have both downline FES Agents themselves become field trainers (i.e., each must have recruited an additional two FES Agents). They were mixing judgments up with the people against whom they were directed. The first way FES Agents are purportedly eligible to be paid is through commissions on purchases by consumers of credit repair services. WebMenu. Defendants Unlawful Investment Opportunity and Pyramid Scheme. The practice of credit repair, which is the marketing or selling of services aimed at improving a buyers credit record, history or rating, with unpredictable results, is generally illegal in the state of Georgia, although some entities, including non-profit 501(c)(3) organizations, are exempt from this statute. Thus FES Agents have the ability to meet the requirement solely through purchases of credit repair services by themselves and other FES Agents, including in the form of continued payment of monthly fees for credit repair services. Ironically, I wrote about this operation in 2012. A friend of mine just started with it and I don't know how to warn him about what he's getting into. Washington, D.C. The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in federal district court yesterday against the credit repair company Prime Marketing Holdings, LLC, which allegedly charged consumers a series of illegal advance fees as well as misrepresented the cost and effectiveness of its services. Knew this was coming!!!! 35. One of those scams was 8 Figure Dream Lifestyle, which touted a proven business model and told Scammers are calling people and using the names of two companies everyone knows, Apple and Amazon, to rip people off. Heres what you need to know about these calls. Many times, people erroneously think that because they did not complete a bankruptcy or after they filed, it was dismissed, that it should not be reporting on their credit reports. Multilevel marketing company agents and owners, beware! [photo of what purports to be five FES Agents with the accompanying statement:] 2020 AVERAGE INCOME $214,329. Now that number has multiplied by three, almost four times. Home; About. Inceptia. We work to advance government policies that protect consumers and promote competition.
In numerous instances, Defendants fail to provide consumers with a Notice of Cancellation form, in duplicate, containing prescribed language concerning consumers three-day right to cancel that consumers can use to cancel the contract. We expect commenters to treat each other and the blog writers with respect. The .gov means its official. An official website of the United States government. 53. Search the Legal Library instead. The testimonials include the following statements: 42. Defendants explain to consumers that if an FES Agent establishes a strong enough set of teams in his or her downline that are consistently performing at a high level (i.e., in terms of new agent recruitment and purchases of credit repair services), the FES Agent at the top can maintain a high title on a monthly basis (and all commensurate bonuses) without having to do very much personal work. If you do, you must create a user name, or we will not post your comment. Consumers seeking credit assistance are also often struggling financially, said Attorney General Carr. She can legit sell this for 280k IF she were to ever go broke and need cash! Before providing any of the promised credit repair services, Defendants require consumers to make an upfront payment for these services. What to know when you're looking for a job or more education, or considering a money-making opportunity or investment. The site is secure. Getting Laid off as a P.E. Defendants and their agents have also made numerous recent statements that prey on consumers fears regarding the financial uncertainty associated with the COVID-19 pandemic as a reason for purchasing their credit repair services. We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. Im a high school drop out. 24. Then I started working as a driver, long hours, low paying, not really worth it. Side Hustle Review - Is It Too Late To Make Money With A Helium Miner? FES allegedly provided bonuses and commissions that were often based purely on the activities of a downline agent, even when the principal agent had performed no bona fide supervisory, selling or soliciting function to the consumer. The whole article is a copy of the federal lawsuit filed by the FTC. Privacy Policy. United Wealth has also done business as United Wealth Education. Defendants also claim they can obtain for consumers credit-building products, such as secured credit cards. Defendants inform FES Agents, however, that if they recruit and maintain a certain number of new FES Agents in a month, the next months fee will be waived. 13. If finalized, the rule would allow the FTC to recover redress for defrauded consumers and seek steep penalties against any multi-level marketers and other bad actors who prey on peoples hopes for economic advancement. Nothing in the compensation plan requires that some or all of the monthly revenue requirements be met through sales to non-participants.



31. The FTC says that FES, which also does business as United Wealth Services, uses social media, telemarketing, and a nationwide network of sales agents to promote its credit repair services in Spanish and English. Imagine creating your own weekly $1200 check.. .would that help your family. The FTC says FES pressures customers who inquire about its credit repair services to become FES agents. The company says agents can earn tens of thousands of dollars a month selling FESs services to other consumers and recruiting those consumers to become FES agents themselves. The comments posted on this blog become part of the public domain. First and foremost, we strive to help people who may have fallen on rough circumstances that have left them in need of some credit repair, whether personally or professionally. Before sharing sensitive information, make sure youre on a federal government site. We are pleased that the court shut down this operation and froze its assets, and we will continue to pursue firms that prey on families economic pain.. We do not charge any fees to you for sending out dispute letters. Defendants explain that FES Agents can earn bonuses when a qualified FES Agent enrolls a new FES Agent who produces a certain minimum of personal revenue within a specific time frame. They have a new domain, new website, and a brand new name. According to the FTCs complaint, Michigan-based Financial Education Services, also doing business as United Wealth Services, has operated its scheme since at least 2015. 57. Even if you have a judgment against you, there is nothing a credit repair company can do to remove it. They are also enjoined from advertising, offering or selling credit repair services in Georgia or creating the perception that their independent sales agents have an affiliation with another to advertise, offer or sell credit repair. Consumers enrolling in Defendants Credit My Rent service must pay additional fees before receiving services. During this pandemic a lot of people didnt expect to have gotten laid off, going through divorces and things like that. Before sharing sensitive or personal information, make sure youre on an official state website. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. Asa wife, mom of four growing boys and one disabled, I needed an opportunity that would give me more income and time flexibility with my family. Defendants claim that consumers who enroll as FES Agents will earn substantial income, typically in the form of commissions and bonuses, for the recruitment of new FES Agents and downstream revenue from the purchases by consumers of credit repair services. Find the resources you need to understand how consumer protection law impacts your business. We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. We will dispute items on your credit report that do not belong on it because they are not legitimate or not verifiable. CM-Rent transacts or has transacted business in this District and throughout the United States. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 55. And this was before COVID. Never in a million years did we hope or dream that there could be an opportunity that would potentially replace my Six Figure Real Estate income, create a secure lifestyle, an at the same time build a legacy for my family. Defendant Michael Toloff is or was an owner, officer, director, or manager of Youth Financial, FES, and VR-Tech Mgt. Defendants and their agents have also made numerous recent statements that prey on consumers fears regarding the COVID-19 pandemic and its financial effects as reason for enrolling in their investment opportunity. But ultimately a good credit score opens up possibilities to create the lifestyle that you deserve. It is your choice whether to submit a comment. His decision ultimately was to appoint the receiver as the monitor who will stay on for an undisclosed amount of time. At all times relevant to this Complaint, acting alone or in concert with others, VR-Tech Mgt has marketed and sold credit repair services and investment opportunities to consumers throughout the United States. Defendants and their agents Internet websites and social media accounts often list telephone numbers for consumers to call for more information. But, the FTC says, FES does neither. Ive become Pinnacle Senior Vice President, earned the Bentley, house payment and numerous company cruises. The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Her utilization shot up from 50% to 90% during the time we were litigating her case. We expect commenters to treat each other and the blog writers with respect. Should FES violate the terms of the settlement at any time over the next three years, it must pay an additional $750,000 penalty. Defendants Do Not Follow Through on Credit Repair Promises. Michael Atleson, Attorney, FTC Division of Advertising Practices, Competition and Consumer Protection Guidance Documents, An Inquiry into Cloud Computing Business Practices: The Federal Trade Commission is seeking public comments, FTC Orders Illumina to Divest Cancer Detection Test Maker GRAIL to Protect Competition in Life-Saving Technology Market, Hearing Before Administrative Law Judge: In re Intuit Inc. - April 10-11, 2023, In this latest case, the FTC says the supposed money-making opportunity was a pyramid scheme, Franchises, Business Opportunities, and Investments, Negative reinforcement? So 2 percent of that, guys Im getting $10,000, thats a six-figure income just in this bonus, every single month. One wonders, therefore, whether any of these companies are an advantage to consumers or merely a business opportunity for someone taking advantage of folks in dire straits. At Michigan Consumer Credit Lawyers, we are credit repair lawyers; we are NOT a credit repair company. Our office also alleges that FES violated the Georgia Multilevel Distribution Companies Act (MLDCA) by selling its credit repair products through a multilevel marketing scheme in which agents primarily earn money through the continued recruitment of other participants, rather than through the sale of credit repair products to non-participating consumers. If I could show you how to earn a [sic] extra 500-1000 a week in a home based business that you can run in all 50 states would you be willing to hear more information? FES charges Good morning! Did You Know? Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity. Got started with FES. Now that you know the difference between legit and illegitimate credit repair, you should sign up with us today. They do not belong to or represent views of the Federal Trade Commission. The Federal Trade Commission works to promote competition and protect and educate consumers. When consumers speak with Defendants representatives regarding Defendants credit repair services, typically by telephone, the representatives often also try to recruit consumers to become FES Agents. At 2.25 percent, thats over $22,000 hes getting as a bonus. Defendants telecommunications services are often paid using his credit card. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices atReportFraud.ftc.gov. Thats it. On May 23, 2022, Financial Education Services, United Wealth Services, VR-Tech, VR-Tech Mgt, CM Rent, Youth Financial Literacy Foundation, Parimal Naik, Michael Toloff, Christopher Toloff, and Gerald Thompson and into an FTC lawsuit and takeover. [Slide from YouTube video presentation:] We joined FES a little over 15 months ago. Defendants require consumers to provide their financial information, including their credit or debit card number or account routing number and bank account number, on the phone. The site is secure. Defendants claim they can successfully and permanently remove all negative information from consumers credit histories or credit reports. In support of its Motion for a Receiver, it has collected over a dozen witness statements of former During these calls, Defendants representatives make many of the same representations included on Defendants websites and social media accounts. For example, in numerous instances, consumers are provided with scripts to use when speaking with consumers for both credit repair and agent recruitment. WebSo, if any of you have seen my first post/story on here, my mother and I encountered a group called Financial Education Services, or FES for short, not too long ago.. At all times relevant to this Complaint, acting alone or in concert with others, he has formulated, directed, controlled, had the authority to control, or participated in the acts and practices set forth in this Complaint. At all times relevant to this Complaint, acting alone or in concert with others, he has formulated, directed, controlled, had the authority to control, or participated in the acts and practices set forth in this Complaint. 12. The complaint alleges that Michigan-based Financial Education Services (FES), five related companies, and owners Parimal Naik, Michael Toloff, Christopher Toloff, and Gerald Thompson bilked consumers out of more than $213 million. Over 43 million Americans have a credit score of 599 or less, and that was pre-pandemic. Defendants representatives typically tell consumers that Defendants services cost $89 per month with a one-time payment of $99, variously referred to as a registration or activation fee. Steve, With the FTC leveling charges of wrongdoing by UWE it would seem to many casual observers that UWE is guilty The language of the FTC throws around charges of SCAM with ease. For example, Defendants and their agents have made the following statements regarding Defendants credit repair services: Any negative items on your credit report that are currently affecting your score Q Deleted!! CM Rent is registered as a foreign corporation in Michigan, with an address of 1 Towne Square, Suite 1835, Southfield, Michigan. For example, in numerous instances, Defendants representatives falsely claim that Defendants can remove negative items from consumers credit reports, including student loans, child support judgments, and bankruptcies. 54. 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