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Responding to charges by the Federal Trade Commission, a U.S. district court has found a credit repair operation in contempt for violating a previous court order that required the defendants to stop promoting bogus credit repair products and services to consumers.  The court ordered the defendants to pay $6.4 million to the FTC within 30 days and permanently shut down their credit repair business.

The contempt order covers Kevin Hargrave and Latrese Hargrave and the companies they control – BFS Empowerment Financial Services Inc., Help My Credit Now Credit Services Inc., and Kevtrese Enterprises Inc. 

The court found that despite entry of a January 2010 order that barred the Florida-based defendants from deceptively marketing credit repair services, the defendants continued to violate the FTC Act and the Credit Repair Organizations Act by claiming that they could permanently remove negative information from consumers’ credit reports, even when the information was accurate.  The court also found the defendants in contempt for charging a $250 “enrollment fee,” in violation of the advance fee prohibition of the prior order. 

The civil contempt order was issued on November 19, 2012, by Judge Marcia Morales Howard of the U.S. District Court for the Middle District of Florida, Jacksonville Division.  The court also issued a modified final order that permanently shuts down the defendants’ credit repair operations and bans them from selling or providing any credit repair products or services, or from assisting others to do so.

The January 2010 order resulted from a complaint the FTC filed against the Hargrave defendants in October 2008 as part of a federal and state law enforcement sweep against credit repair operations that allegedly deceptively marketed their services.  According to the complaint, the defendants advertised on the Internet and radio stations and charged $250 to $270 per person and $450 per couple for purported credit repair services, requiring half or all of the charge to be paid in advance.  In their advertisements, defendants touted that they “specialize in erasing bad credit!”    

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

FTC File No. 082-3007

Contact Information

Mitchell J. Katz,
Office of Public Affairs

Jessica D. Gray,
FTC Southeast Region

Robin Rock,
FTC Southeast Region