Attorney General Dustin McDaniel today filed a consumer protection lawsuit against a Texas-based company that pledges to offer a quick fix a consumer’s damaged credit history. The complaint alleges that offered services are ineffective and that the defendants charge an advance fee that is prohibited by federal law.
According to the suit, representatives of TRW Ventures LLC and its affiliates represent to Arkansas customers that the company can and will remove all negative information from credit reports, even that which is accurate and not obsolete.
Such accurate and timely credit information is not removed from a credit history just by request. Since most credit repair offers misrepresent this fact, federal law prohibits companies from charging or collecting any fee in advance of fully performing all promised credit repair services. TRW has charged advance fees of between $700 and $800 per consumer.
“Many consumers with bad credit see offers of this kind as their last hope to improve their financial situation. Unfortunately, TRW readily takes the money, but offers no real benefit, despite its sales pitch,” McDaniel said. “Consumers are actually better-served by making timely debt payments and reviewing credit reports themselves.”
The suit, filed in U.S. District Court in Little Rock, seeks to prevent TRW from engaging in the practices alleged in the complaint. It also seeks restitution for affected consumers, the imposition of civil penalties and attorneys’ fees.
Defendants in the complaint are TRW Ventures LLC, TRW Ventures, Inc., TRW Credit Repair Experts, Inc., TRW Credit Group LLP and the owner, CEO and president of the companies, Thomas Randall Wells.
McDaniel said his office is available to help consumers who have concerns regarding their credit reports.
“If a consumer finds negative credit information on his credit report that is either inaccurate or obsolete, perhaps because that consumer has been the victim of identity theft, that information can be removed by request of the consumer and without any charge,” McDaniel said. “Every day my office assists consumers in such efforts.”
For more information regarding credit repair and identity theft, call the Attorney General’s Consumer Hotline at (501) 682-2341 or (800) 482-8982 or visit www.arkansasag.gov