The Federal Trade Commission has settled charges with the operator of a Web site that sold credit repair advice and promised “perfect credit instantly.”
The settlement with Clifton W. Cross, bars future violations of the Credit Repair Organizations Act, deceptive claims about file segregation — including claims that it is legal — and prohibits Cross from using or selling his customer lists. Cross was also sentenced to 49 months in federal prison and ordered to pay nearly $171,000 in restitution as part of a guilty plea.
According to the FTC, Cross allegedly sold instructions about how consumers could substitute federally-issued, nine-digit employee identification numbers or taxpayer identification numbers for social security numbers and use them illegally to build new credit profiles that would allow them to get credit they may be denied based on their real credit histories. Using “file segregation” to alter your credit history is a felony.
The Settlement was made in U.S. District Court in Odessa, TX.
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