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Colorado joined a crackdown called Operation Clean Sweep, a joint effort with the Federal Trade Commission and 22 other states to root out unlawful credit repair practices in 33 businesses nationwide. The Colorado Attorney General’s Office announced Thursday that it has entered into settlement agreements with two Colorado credit service organizations, and has ongoing investigations into several others.

“Especially in today’s credit market, gaining and maintaining good credit is an increasingly important part of financial stability,” commented Colorado Attorney General Suthers. “Unfortunately, several disreputable businesses prey on consumers whose credit is less-than ideal, and we will continue to hold them accountable for their deception.”

Settlements have been reached with Aurora’s Integrity Credit Fix, Inc., and My Purchase Power, LLC, located in Northglenn. Each company charged fees prior to the completion of their services and failed to provide all required disclosures. Both companies have agreed to cease and desist from violating the Colorado Credit Services Organization Act. A dozen other investigations are ongoing.

No entity can legally remove accurate and timely negative information from a credit report. The federal Fair Credit Reporting Act and Colorado Consumer Credit Reporting Act allow credit bureaus to report accurate negative information for seven years, and bankruptcies for ten years.

Consumers can obtain a free yearly copy of their credit report online, or by calling 1-877-322-8228. Consumers may dispute or correct old or incorrect information on a credit report by contacting the credit bureaus directly.

If you have a complaint about a credit repair company, call the Attorney General’s Office at 303-866-4494, or download a complaint form.

Attorney General Bill McCollum has announced Florida’s participation in a collaborative effort targeting credit repair operators, many of which deceptively claim they can remove any and all negative information from consumers’ credit reports.

The Federal Trade Commission (FTC) and 23 states joined forces in Operation Clean Sweep, a nationwide initiative to address this consumer protection issue.

“Whether through credit repair, debt management, debt settlement, or interest rate reduction schemes, it is unacceptable to deceptively convince consumers facing financial distress to part with their money,” said Attorney General McCollum.

Collectively, the FTC and the states took actions against 36 companies engaged in potentially deceptive or misleading conduct. Allegations include making false and misleading statements to consumers, charging advance fees for credit repair services, violating federal and state laws governing credit repair organizations and deceptive and unfair practices.

The actions taken in Florida were announced by the Attorney General last week as part of a consumer protection initiative targeting potentially improper tactics in Florida’s debt relief industry. Those actions included a lawsuit filed against Dunedin-based Enterprise Technology Group, Inc., doing business as Ameritrust Financial Card, and settlements with 16 defendants associated with New Leaf Associates, LLC, a Pinellas County company engaged in a “debt elimination” scheme.

Credit repair schemes are just one type of the broader class of debt relief schemes which prey on consumers in financial distress. Claims to improve credit or eliminate bad credit are sometimes part of other operations claiming to negotiate or eliminate debt. Consumers need to be cautious of firms offering debt relief, including debt management, credit counseling, and credit card rate reduction services. Often, the goal is to get the consumer’s money, with no real benefit provided to the consumer in return.

More information on the Attorney General’s debt relief consumer protection initiative is available online at: http://myfloridalegal.com. Additional information about credit repair scams is also available at http://www.ftc.gov.