Judge Shuts Credit Repair Scheme at FTC’s Request

At the request of the Federal Trade Commission, a U.S. district judge temporarily shut down a Florida-based operation that allegedly continued to pitch bogus credit-repair services nationwide.
The operation continued to make its pitch of fixing anyone’s credit for $250, despite a 2010 court order requiring it to stop doing so, the FTC said.
The new court order will remain in place while the FTC seeks a contempt ruling against the defendants for violating the original order.
In 2008, the FTC filed a complaint against Latrese and Kevin Hargrave and the firms they control, alleging that they advertised on the Internet and radio stations and charged $250 to $270 per person and $450 per couple for purported credit repair services, requiring half or all of the charge to be paid in advance.
In January 2010, the court ruled in favor of the FTC and barred the defendants from making or using untrue or misleading statements to get consumers to buy their credit repair services. It also barred them from charging or receiving an up-front payment for such services.
In a radio script, the Hargraves stated: “They specialize in erasing bad credit! Hargrave & Associates covers all three major credit bureaus; slow pays, charge-offs, repossessions can be erased for two-hundred, fifty dollars.”
At the FTC’s request last month, the U.S. District Court in Jacksonville, Florida, issued a temporary restraining order against the Hargraves, appointed a receiver, and froze their assets, stating that “there is good cause to believe that the defendants have violated, and continue to violate provisions of the permanent injunction” against them.

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