Tag: Credit & Loan Offers

The Federal Trade Commission has taken action against Financial Education Services and its owners, Parimal Naik, Michael Toloff, Christopher Toloff and Gerald Thompson, as well as a number of related companies, for scamming consumers out of more than $213 million.

In response to a complaint filed by the FTC, a federal court has temporarily shut down the sprawling bogus credit repair scheme. The FTC’s complaint alleges that the company preys on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to join a pyramid scheme selling the same worthless credit repair services to others. 

According to the FTC’s complaint, Michigan-based Financial Education Services, also doing business as United Wealth Services, has operated its scheme since at least 2015. The company claims to offer consumers the ability to remove negative information from credit reports and increase credit scores by hundreds of points, charging as much as $89 per month for their services. Their techniques, according to the complaint, are rarely effective and in many instances harm consumer’s credit scores.

In March 2026, the FTC sent more than $10.9 million to consumers harmed by the credit repair pyramid scheme.

The Federal Trade Commission and State of California are taking action against home improvement financing provider Ygrene Energy Fund Inc. for deceiving consumers about the potential financial impact of its financing, and for unfairly recording liens on consumers’ homes without their consent. The FTC and California allege that Ygrene and its contractors falsely told consumers that the financing wouldn’t interfere with the sale or refinancing of their homes, in many instances relying on high-pressure sales tactics or outright forgery to sign consumers up.

A proposed court order would require Ygrene to stop its deceptive practices and meaningfully oversee the contractors who have served as its salesforce. As part of the settlement, Ygrene will be required to dedicate $3 million to provide relief to certain consumers whose homes are subject to the company’s liens.

In July 2025, the FTC issued more than $2.9 million in payments to consumers harmed by Ygrene’s false claims.

At the request of the Federal Trade Commission, a federal court has temporarily halted a bogus credit repair scheme known as The Credit Game for promoting a series of lies and deceptions. The FTC alleged the scheme’s operators lied to credit reporting agencies regarding information on consumers’ credit reports and pitched consumers a supposed business opportunity that was essentially starting their own bogus credit repair scheme.

In a complaint filed against The Credit Game and its owners, Michael and Valerie Rando, the FTC alleged that the company has illegally charged consumers hundreds and even thousands of dollars for credit repair services of little to no value and told consumers to “invest” their COVID-19 governmental benefits on their unlawful services. In some cases, the company’s “services” included filing false identity theft reports with the FTC and encouraging consumers to take actions that were unlawful. The FTC asked the court to immediately halt the company’s illegal operations, appoint a receiver, and freeze the defendants’ assets. The court issued a temporary restraining order doing so on May 3, 2022.

As a result of a Federal Trade Commission lawsuit, the operators of “The Credit Game,” a credit repair scheme that cost consumers millions of dollars, face a lifetime ban from the credit repair industry in proposed court orders filed today.

Michael and Valerie Rando and their companies, first sued by the FTC in May 2022, would also be required to turn over a wide array of property that would be liquidated and used to provide refunds to consumers harmed by the scam.

The FTC issued more than $3.5 million in refunds to consumers harmed by a credit-repair scheme called ‘The Credit Game.’ 

A Federal Trade Commission action against household water treatment funding company Aqua Finance, Inc. (AFI) has led to a settlement that will provide $20 million in refunds and an additional $23.6 million in debt forgiveness for consumers harmed by its dealers’ deceptive sales tactics.

The FTC’s complaint against AFI charges that the company’s nationwide network of dealers went door-to-door, deceiving consumers about the financing terms for water filtering and softening products. According to the complaint, the bogus claims left consumers with thousands of dollars in unexpected debt and huge interest payments, while its financing terms impaired some consumers’ ability to sell their homes. 

In February 2025, the Commission more than $19.8 million in refunds to consumers who were harmed by deceptive sales tactics from household water treatment funding company Aqua Finance.

As a result of a Federal Trade Commission lawsuit, the operators of an alleged credit card debt relief scheme based in Tennessee have agreed to court orders that would permanently ban them from telemarketing and selling debt relief products or services.

Sean Austin, John Steven Huffman, John Preston Thompson, and their affiliated companies were charged by the FTC in November 2022 with taking tens of millions of dollars from people by falsely promising to eliminate or substantially reduce their credit card debt. At the time, a federal court agreed to the FTC’s request to temporarily freeze the defendants’ assets and appoint a receiver over the businesses while the case took place.

The U.S. District Court for the Middle District of Tennessee, Nashville Division, entered the final orders on April 28, 2023.

In January 2025, the FTC sent more than $5 million in refunds to consumers harmed by a deceptive credit card debt relief scheme known as ACRO Services.

The Federal Trade Commission has referred its federal court case against online cash advance firm Dave Inc. to the U.S. Department of Justice (DOJ) which has filed an amended complaint in the case that names Dave CEO Jason Wilk as a defendant and seeks civil penalties.

The FTC first brought its case against Dave in November 2024, charging that the company uses misleading marketing to deceive consumers about the amount of its cash advances, charges consumers undisclosed fees, and charges so-called “tips” to consumers without their consent.

The Federal Trade Commission and a group of 18 states sued national jewelry retailer Harris Jewelry to stop the company from cheating military families with illegal financing and sales practices. According to the complaint, the jewelry company deceptively claimed that financing jewelry purchases through Harris would raise servicemembers’ credit scores, misrepresented that its protection plans were not optional or were required, and added the plans to purchases without consumers’ consent. The complaint also includes a charge that the jewelry company violated the Military Lending Act, the FTC’s first action under this Act.

A federal court has ordered Harris Jewelry to reopen its claims process and renotify consumers, most of whom are active duty servicemembers, to submit their claims for refunds. The court found Harris Jewelry violated its prior settlement with the Federal Trade Commission and a multistate group led by the New York Attorney General’s Office by prematurely shutting down the claims portal.

The new claims process is open for 33 days, starting November 18, 2024 and ending Saturday, December 21, 2024.  

The Federal Trade Commission has taken action against credit services company Credit Karma for deploying dark patterns to misrepresent that consumers were “pre-approved” for credit card offers. The FTC alleges that the company used claims that consumers were “pre-approved” and had “90% odds” to entice them to apply for offers that, in many instances, they ultimately did not qualify for. The agency’s order requires the company to pay $3 million that will be sent to consumers who wasted time applying for these credit cards and to stop making these types of deceptive claims.

In January 2023, the Commission finalized the order in this case.

 In October 2024, the Federal Trade Commission sent more than $2.5 million to consumers who were misled by deceptive claims from credit services company Credit Karma.