INDIANAPOLIS - A credit organization will have to pay nearly $35,000 as the result of a lawsuit filed against it by Indiana Attorney General Steve Carter, though only $772 will be used as restitution.
A Monday ruling in Elkhart Superior Court went against Credit Repair Experts and its owners Rochali D. Newbill and Tim Downs. The company will pay more than $33,000 in costs and penalties.
Carter's suit was filed last year and alleged the company failed to provide the credit repair services it promised and entered into an unlawful contract with a Bristol couple.
Carter also said Newbill and Downs did not obtain the proper $25,000 surety bond required for credit service organizations and entered into a contract that lacked required written statements and notice of cancellation.
"Companies that seek to operate as credit service organizations are required to be bonded to protect people against potential harm," Carter said. "The law requires consumers be notified of their right to cancel along with the terms of any contract they sign so they are informed about what they are getting into."
As far as the unlawful contract is concerned, Carter said it lacked a statement explaining the buyer's right to proceed against the bond or surety, and failed to contain the name and address of the surety bond account or a statement of the availability of nonprofit counseling services.