Consumer Finance Insights
July 20, 2019

Georgia AG Announces Settlement with Credit Repair Company

On July 19, 2019, the Georgia Attorney General’s Office (AG) announced that it had entered into a settlement with a company allegedly offering unlawful and deceptive credit repair services in violation of the Georgia Fair Business Practices Act.

According to the AG, Georgia law generally forbids the provision of credit repair services except by certain entities such as non-profits.  The AG alleged that the credit repair service provider attempted to circumvent state and federal credit repair laws by partnering with a sham non-profit organization it controlled.  The company also allegedly accepted payment for credit repair services before those services were provided.  Additional allegations relate to the multilevel marketing structure within which its agents operated.​  The ​Georgia Multilevel Distribution Companies Act prohibits such arrangements.

Under the settlement, the company will pay a $1 million civil penalty to the state, as well as an additional $750,000 if it violates the settlement within three years.  The company is also enjoined from offering or purporting to offer credit repair services itself or through its agents, and must change its policies to avoid violation of the settlement.

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