WASHINGTON – The last thing people who turned to Alex Miller Credit Repair for help needed was to end up in worse financial shape than when they began. But according to a lawsuit the Department of Justice filed for the Federal Trade Commission, the company took people’s money without delivering on its promises to boost their credit scores.
The lawsuit says that since 2018, the company, formally known as Turbo Solutions Inc., and its owner, Alex V. Miller, have scammed people out of more than $10.1 million through their fraudulent credit repair scheme.
According to the lawsuit, the company claims it can remove negative items, such as collection accounts, from people’s credit reports, and boost their scores with “credit building products.” But the FTC and DOJ say the claims are false or misleading. People don’t see those improvements to their credit scores, despite paying up to $1,500 in up-front fees – which, by the way, are illegal for credit repair companies to collect.
Through the company’s website and Instagram account, Miller and his company claim, “We Delete Inaccurate and Negative Accounts,” and promise “results in 40 days!,” according to the complaint. Consumers who call a phone number listed on the company’s website and Instagram account reach company representatives who often make many of the same false claims, including that consumers’ credit scores would be boosted by 50-200 points, a violation of the Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rule, the complaint alleges.
The complaint also alleges that Miller and his company have violated the CROA by failing to include disclosures detailing the cancelation policies and failing to provide all consumers with a copy of contracts they are required to sign to obtain the company’s services.
The complaint says the defendants also have used the FTC’s IdentityTheft.gov website to file fake identity theft reports.
There, they’ve claimed that people had negative information on their reports because of identity theft. The complaint also says the defendants have failed to give people copies of their contracts and required disclosures, including a statement explaining that people can cancel their contract without charge within three business days of signing it.
At the request of the FTC and the Department of Justice, a federal judge issued an injunction March 18 against Texas-based Turbo Solutions Inc., which does business as Alex Miller Credit Repair, and its owner. In a complaint filed by the Department of Justice on behalf of the FTC, the Commission alleges that Turbo Solutions and Miller operate a deceptive credit repair scheme that claims it can help repair consumers’ credit through a “two-step process,” but often fails to deliver on its promises.
The company claims it can remove negative information from consumers’ histories through “advanced disputing” of negative items on a consumer’s credit report and by adding “credit building products” to boost credit scores, which can help consumers obtain loans and other credit at lower rates. The complaint seeks both civil penalties and consumer redress.
If you’re trying to fix your credit, remember that credit repair companies can’t remove accurate negative information from your credit report. And anything they can do for you legally, you can do for yourself.
If you’re considering hiring someone to help you clear your credit, keep in mind that reputable credit counselors review your whole financial situation before they make a plan. They won’t ask you to pay in advance, dispute information in your credit report that you believe is accurate, or tell you not to contact the credit bureaus directly.
If you have a problem with a credit repair organization, report it to the FTC and Oklahoma Attorney General John O’Connor.
The FTC vote to refer the complaint to DOJ for filing was 4-0. The DoJ filed the complaint on behalf of the FTC in the U.S. District Court for the Southern District of Texas, Houston Division.