Meanwhile, generation bonuses start at the executive sales director level and typically pay an additional 1% (going up to 2.75% for pinnacle senior vice president). 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. Each title has its own prerequisites to achieving it, but each one essentially boils down to needing a larger number of people in an FES Agents downline, a certain number of downline FES Agents having achieved their own titles, and a certain dollar amount in personal credit repair services revenue each month. 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. Even then, we only look to the defendants to pay our fees and costs so nothing comes out of your pocket. Defendants also claim they can obtain for consumers credit-building products, such as secured credit cards. Her utilization shot up from 50% to 90% during the time we were litigating her case. Our life has changed drastically! [YouTube video presenter states:] I signed up for the program, my credit score went up 130-something points within the first 45 days. When I started my credit score was a 505 and I had 23 derogatory items on my credit reports.

Defendant Parimal Naik is or was an owner, officer, director, or manager of Youth Financial, FES, and VR-Tech. For example, in YouTube video presentations, Defendants and their agents have made statements such as: 27. See the attached notice of cancellation form for an explanation of this right.. Christina began using the services over a year ago and within a four month period her score increased 150 points!! Defendant VR-Tech, LLC (VR-Tech) is a Michigan limited liability company with its principal place of business at 37735 Enterprise Court, Suite 600, Farmington Hills, Michigan. Defendants FES, United Wealth, VR-Tech, VR-Tech Mgt, CM Rent, and Youth Financial (collectively, Corporate Defendants) have operated as a common enterprise while engaging in the unlawful acts and practices alleged below. 49. This service is AMAZING!!! Defendants also provide consumers with ads for consumers to post on their social media accounts. We wont post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. FES and UWE are scheduled to fight this receivership at the end of June 2022, but their chances do not look good. Thats it. The comments posted on this blog become part of the public domain. They have been changing their names to evade the law and bad reviews over the years. Meanwhile, in some instances, Defendants encourage FES Agents to market their credit repair services by saying, without any substantiation, that because of the COVID-19 pandemic, the credit bureau and creditor work force would be less likely to respond timely to dispute letters, resulting in the automatic removal of the disputed items. Defendants claim they can successfully and permanently remove all negative information from consumers credit histories or credit reports. 35. 39. Your thoughts, ideas, and concerns are welcome, and we encourage comments. Defendants representatives explain that they achieve their results by sending manual dispute letters to the credit reporting agencies. For more information on how the FTC handles information that we collect, please read our privacy policy. For more information on how the FTC handles information that we collect, please read our privacy policy. The message says theres something wrong with Its Cyber Security Awareness month, so the tricks scammers use to steal our personal information are on our minds. Agents typically receive a CAB of $100, field trainers receive $160, senior field trainers receive $240, and pinnacle senior vice presidents receive $560. Defendants falsely claim that FES Agents will earn substantial income. Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. [translation: If you have a credit between 499-699 points, we legally erase everything that is affecting your credit.]. When consumers then speak with Defendants representatives over the telephone, the representatives make many of the same deceptive representations included on Defendants websites and social media accounts. As a result, in many instances, FES Agents end up paying more money to Defendants than they receive from them. 16. 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. Since at least 2015, Defendants have operated an unlawful credit repair scam that has deceived consumers across the country. The monitor is there to make sure the businesses are being conducted according to the law.. Self-consumption Agents pay other people to enroll with FES as agents or offer potential agents discounts in an attempt to grow the original FES agents downline. Comments and user names are part of the Federal Trade Commissions (FTC) public records system, and user names also are part of the FTCscomputer user recordssystem. According to the complaint, FES also pressures people to become FES agents, telling them they can make tens of thousands of dollars a month selling FES services to other consumers and recruiting them to become FES agents themselves.

An FES Agent earns Defendants explain their commissions and bonuses in a compensation plan they provide to prospective and new FES Agents, which is often described during calls with Defendants representatives or during training sessions. 14. Looking for legal documents or records? This is yet another credit repair operation that has run into regulators. Update 2 On The Make Money With a Side Hustle Project. Defendant Gerald Thompson resides in this District and, in connection with the matters alleged herein, transacts or has transacted business in this District and throughout the United States. In some instances, Defendants will offer to lower or waive the registration fee if the consumers agree to sign up on the call. Please contact the moderators of this subreddit if you have any questions or concerns. It looks like they had a big run. Its just a lie. 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. The second, and main, way FES Agents are purportedly eligible to be paid is by creating lineage organizations and building a team. This is commonly referred to as a downline. By urging FES Agents to create lineage organizations and build a team, Defendants stress that an FES Agent has the ability to make significantly more money by recruiting new agents. No credit repair company can do anything about it unless the bankruptcy does not belong to you. They do not belong to or represent views of the Federal Trade Commission. 7. The Honest and Unvarnished Truth. For the second time this month, the FTC has sued a credit repair operation that it says combined fake promises to swiftly and substantially boost peoples credit scores with the offer of a bogus money-making opportunity selling credit repair services. Local, state, and federal government websites often end in .gov. Our office alleges that FES tried to mislead consumers and circumvent state and federal credit repair laws by affiliating with a non-profit organization that the Defendants themselves managed and directed. There is nothing more to a good dispute letter than that. VR- Tech transacts or has transacted business in this District and throughout the United States. 32. In numerous instances, Defendants fail to provide or obtain written and dated contracts signed by consumers that contain: (1) the terms and conditions of payment, including the total amount of all payments to be made by the consumer to Defendants or to any other person, (2) a full and detailed description of the credit repair services to be performed by Defendants for the consumer, including (a) all guarantees of performance, and (b) an estimate of (i) the date by which the performance of the services (to be performed by Defendants or any other person) will be complete or (ii) the length of the period necessary to perform such services; (3) Defendants name and principal business address; or (4) a conspicuous statement in bold face type, in immediate proximity to the space reserved for the consumers signature on the contract, which reads as follows: You may cancel this contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you signed the contract.

Attention!! Why? Its the only way to do credit repair in a legally compliant manner. FES claims it can boost peoples credit scores by hundreds of points quickly by permanently removing negative information from their credit reports and adding positive information. CM Rent has also done business as Credit My Rent. [Slide from YouTube video presentation:] We joined FES a little over 15 months ago.

To protect your privacy and the privacy of other people, please do not include personal information. Defendants claim that these activities will significantly increase consumers credit scores and their eligibility for funding at lower interest rates. When credit bureaus receive letters disputing all negative items on a credit report, they know that these letters are bogus. Defendants trainings also focus more on, and emphasize, how to recruit new agents over selling credit repair services. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. An official website of the United States government.

I thought youd find this interesting. Defendants compensation plan incentivizes recruiting new FES Agents over selling credit repair services, and few consumers ever realize the promised earnings.. If you do, you must create a user name, or we will not post your comment. Side Hustle Review - Is It Too Late To Make Money With A Helium Miner? The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments.

I posted her getting her G wagon last year and now its paid off! The complaint alleges that the credit repair scheme and pyramid scheme are intertwined. In addition, the complaint says, FES doesnt give people important information that the Credit Repair Organizations Act (CROA) requires, including signed contracts that disclose the services it will provide, the total cost of its services, and its refund and cancellation policies. The complaint charges that the companys practices violate the FTC Act, CROA, and the Telemarketing Sales Rule. 18. For example, Defendants and their agents have made the following statements regarding Defendants investment opportunity: 41.

Additionally, some FES agents are alleged to have engaged in the following unlawful and deceptive practices: In resolution of these allegations, FES has entered into a settlement with our office requiring it to pay $1 million in civil penalties to the state. If your credit score is low, a promise of a fix that can help you quickly get the money-saving benefits a high credit score brings can be appealing. This is called utilization. I was able to purchase the car I wanted and the condo I wanted. The FTCs complaint alleges that the company preys on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to join a pyramid scheme selling the same worthless credit repair services to others. How Do I Get Out of Debt Quickly? For a lot of people, theyre biggest expense is their rent, but its not being reported to the credit bureaus. At all times relevant to this Complaint, acting alone or in concert with others, CM-Rent has marketed and sold credit repair services and investment opportunities to consumers throughout the United States. Find legal resources and guidance to understand your business responsibilities and comply with the law. Bad things happen to good people all the time. Defendants and their agents utilize Internet websites, including myuwe.net, financialeducationservices.com, fesuniversity.com, and momentumsociety.net, as well as social media sites, including Facebook, Instagram, and YouTube, on which they make deceptive claims regarding their investment opportunities. Defendant Michael Toloff is or was an owner, officer, director, or manager of Youth Financial, FES, and VR-Tech Mgt. He even went to a convention in Orlando. In numerous instances, however, these unsupported challenges have not caused credit reporting agencies to delete permanently or change the information. Thank you for your post. But ultimately a good credit score opens up possibilities to create the lifestyle that you deserve. Lessons Learned. Defendant Christopher Toloff resides in this District and, in connection with the matters alleged herein, transacts or has transacted business in this District and throughout the United States.

The complaint charges that few people, if any, make the income promised, and many lose money as FES agents. At all times relevant to this Complaint, Defendants have maintained a substantial course of trade in or affecting commerce, as commerce is defined in Section 4 of the FTC Act, 15 U.S.C. 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 complaint alleges that the companys practices violate the FTC Act, the Credit Repair Organizations Act, and the Telemarketing Sales Rule. 45. WebThey are no longer accredited through the BBB due to all of the negative reviews, not to mention the lawsuit they had in 2019 where they agreed to pay over $1 million. You can imagine during Covid how many restaurant owners, how many different people that have brick and mortars lost money because of that. Now, its been five years since I said YES to FES and my life has truly changed! The FTCs investigation found that the companys scheme combines charging consumers for these worthless credit repair services with a hard sell to join a pyramid scheme that consists of selling the worthless services to more consumers. Can I Send a Cease and Desist Letter to a Debt Collector? 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. So at Sales Director, at $10,000 a month in volume, youre bringing in its 0.5%, which is about $50, but thats just a bonus, guys. Change Your Mindset. 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. [YouTube presenter states:] Within a few months, her credit score jumped 200 points, she had about 13 items deleted from her credit now shes a homeowner. the relevant period of this monitorship was marked by the need for the Monitor to continue to render extensive services, including, among other things: continued review of business, operational and financial related documentation; interviews of various company personnel and independent sales agents; preparation and submission of requests for documents and information to the Monitored Entities and review and analysis of same; attendance and monitoring company training events in Florida and Georgia; review and analysis of company operations; and continued preparations of the Monitor report., From the story link you posted, I think the conversion from receiver to monitor is covered by this statement, From the June 30 hearing transcript, the judge remained fairly neutral and expressed his strong belief that FES will work or move to modify any business operations to be fully compliant and within the law going forward since there will be so many watching the business. My wife and I didnt have money saved, took a chance at what I believed would be just some extra income for us. Nothing in the compensation plan requires that some or all of the monthly revenue requirements be met through sales to non-participants. What to know when you're looking for a job or more education, or considering a money-making opportunity or investment.

But, the FTC says, FESs purported business opportunity requires its agents to pay hundreds of dollars to join and advance in the business. Is EquityExperts.org slipping in defending against the flurry of Fair Debt Collection Practices Act lawsuits? 60. Search the Legal Library instead. FES Agents then pay $89 per month thereafter (although in more recent instances, the monthly fee drops to $69 per month after three months, and then to $49 per month after one year). 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. If youre working to repair your credit, Fixing Your Credit FAQshas information about building your credit and spotting scams. je suis dans la joie chant africain partition; caught drink driving 3 times over limit; patrice aguirre gino hernandez

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. We once had a client for whom we were able to remove negative incorrectly reporting information and her credit score still went down. Youth Financial was originally incorporated as MSU Common Sense, Inc., which changed its name to The Thompson Scholarship Foundation, Inc., which changed its name to Patro Scholarship Foundation, Inc., which changed its name to Youth Financial. Youth Financial has also done business as American Credit Education Services, Financial Education, Financial Literacy Education Services, and United Credit Education Services. 21. For example, to purportedly remove negative information, FES emails clients uneditable form letters to print, sign, and send to credit bureaus. 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. The Ultimate Consumer Guide to Checking Out a Debt Relief Company Before You Sign On the Line, These Private Student Loans Can Be Easily Discharged in Bankruptcy, Top 10 Reasons You Should Stop Paying Your Unaffordable Private Student Loan. 19. Before sharing sensitive information, make sure youre on a federal government site.

Now this is a separate service where you can actually back date up to two years of your rent payments, have them reported to we actually do work with Transunion and Equifax right now and it can help you boost your credit score anywhere from 50 to 100 points. 8. Defendants Unlawful Investment Opportunity and Pyramid Scheme. A judge reversed the injunction against UWE in about a month after the charges against them were filed. If anyone makes any of these statements to you, run away from them as fast as you can as they are lying to you. In response to a complaint filed by the FTC, a federal court has temporarily shut downthe sprawling bogus credit repair scheme. Through Internet websites, social media, telemarketing, and using a network of sales agents (FES Agents), Defendants falsely claim they can improve consumers credit scores by removing all negative items from their credit reports and adding credit building products. Youth Financial transacts or has transacted business in this District and throughout the United States. Our story; Acharya Shri Parveen Nair; Louis Lim (Ramana) Our Certified Teachers; Yoga Teacher Trainings. Multi Level Marketing (MLM) schemes are a drain on our society. For example, in numerous instances, Defendants representatives state that consumers who become FES Agents will make commissions on recruitment of additional consumers to become FES Agents as well as from purchases by consumers of credit repair services. Even if you have a judgment against you, there is nothing a credit repair company can do to remove it. Please make sure that you review our sub rules. A good dispute letter identifies yourself clearly, the tradeline that you are disputing and a valid reason for the dispute. What to do about unwanted calls, emails, and text messages that can be annoying, might be illegal, and are probably scams. Defendants and their agents also depict purported success stories of consumers for whom Defendants allegedly raised their credit. We expect commenters to treat each other and the blog writers with respect. In this latest case, the FTC says the supposed money-making opportunity was a pyramid scheme. Can we agree that were offering something that people need? In other instances, consumers are invited to participate in telephonic conferences, such as Zoom calls or Facebook Live videos. Start small, then add on. 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 first months fee of $89 is added to the administrative fee. Im a high school drop out. In some instances, Defendants do not pay promised bonuses to FES Agents. Posted on March 22, 2023 by March 22, 2023 by 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. Corporate Defendants have conducted the business practices described below through an interrelated network of companies that have common ownership, officers, managers, business functions, employees, and office locations, and that commingled funds. 51. An FES Agent earns a $12 commission for each person who enrolls in Defendants credit repair services, and $12 each month thereafter as long as the person continues to make his or her payments to Defendants. We review all comments before they are posted, and we wont post comments that dont comply with our commenting policy. Defendants falsely claim that FES agents will earn substantial income. So I had no job. 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. We wont post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions. 53. Looking for legal documents or records? Should FES violate the terms of the settlement at any time over the next three years, it must pay an additional $750,000 penalty. An official website of the United States government. WebFES is a nonprofit foundation that provides support to nonprofit organizations so they can focus on fulfilling their missions. The complaint was filed in the U.S. District Court for the Eastern District of Michigan. Its participants either build the pyramid taller, or get squashed by it.