The Credit Game University

Agency: Federal Trade Commission (FTC)Washington
Description:

On May 2, 2022 the Federal Trade Commission (FTC) filed a Complaint for Permanent Injunction, Monetary Relief, and Other Relief against The Credit Game and its owners, Michael and Valerie Rando for allegedly operating an illegal credit repair organization. The company charged consumers hundreds and even thousands of dollars for credit repair services that yielded little or no results. The business is said to have made over $15 million selling illegal credit repair services and business opportunities. The FTC asked the court to immediately halt the company’s illegal operations, appoint a receiver, and freeze the company’s assets. On May 3, 2022, the court issued a temporary restraining order against the business and its owners.

According to the complaint the Randos through there credit repair business used deceptive and misleading tactics and violated the law. The allegations include:

• Deceptive marketing: The defendants mislead and lied to consumers in numerous ways about whether their products are legal and effective, and about their guaranteed refund policy.


• Credit piggybacking: The complaint alleges that the business marketed a practice known as credit piggybacking. In a piggybacking scheme, a consumer seeking to raise their credit scores pays to be added as an “authorized user” to a credit card account belonging to someone with higher credit. While they are shown as an “authorized user” they do not have actual access to the account or line of credit.


• Filing false identity theft reports: The Credit Game filed thousands of false identity theft reports with the FTC on behalf of consumers in an effort to remove accurate negative information from consumer’s credit reports, an illegal practice.


• Bogus business opportunity: The also sold consumers’ phony business opportunities making “tens of thousands” of dollars monthly that consist of reselling The Credit Game’s unlawful credit repair services to others. The business urged people to use their COVID-19 relief benefits to buy the supposed opportunity.


• Illegal advance fees: The business charges illegal upfront fees for credit repair services. They often used high-pressure sales tactics and failed to give consumers required information before they are pressured to buy.

The FTC’s investigation also found that the business had purchased a tradeline database from William Airy and BMS, Inc., an entity that was sued by the FTC for operating a bogus credit repair scheme in 2020. The Randos were aware of the FTC’s investigation into Airy and BMS when they bought the tradeline database.

Full details of the FTC Complaint are available here.