BOSTON (Legal Newsline) – Massachusetts Attorney General Maura Healey has teamed with the feds to go after a credit repair company.
Healey and the Consumer Financial Protection Bureau filed their lawsuit May 22 against Key Credit Repair, claiming it lies when it claims its actions will significantly help customers’ credit scores.
The lawsuit says KCR is ineffective and has engaged in abusive practices by charging customers before achieving promised results.
“Defendants’ credit-service agreement (CSA)—their written contract with consumers—does not set forth the ‘total cost to the buyer’ or ‘the total of all payments to be made by the buyer,’” the lawsuit says.
“Instead, KCR’s CSAs are open-ended, highlighting that ‘the client understands that they are paying on a month to month basis.’ The CSA discloses only the first-work fee, to be paid within five days, and the monthly service fee plus ‘expedited billing processing fee,’ both of which are to be charged ‘each subsequent month’ after the first-work fee.
“These charges continue indefinitely until the consumer cancels the agreement in writing. Defendants’ CSA also fails to alert the consumer to his or her right to proceed against the relevant surety bond or trust account and fails to disclose the contact and other information for those entities, as required by the MA-CSO.”