Richardson-based Payneless Credit Repair agrees to settle FTC charges

The FTC put the hammer down on the local credit repair agency.

RICHARDSON — The Federal Trade Commission announced today the settlement of charges against Richardson-based Payneless Credit Repair, which the FTC alleged had lured consumers with false claims for credit repair services and required advance payment ranging from $500 to as much as $2,500.

Photo not provided by the FTC, Payneless Credit Repair

It seems the dark and seedy underbelly of consumer credit is not as pure as we'd originally thought

The agency filed the charges in July as part of "Operation Clean Sweep," a crackdown on credit repair operations.

The proposed settlement bars Payneless Credit Repair, LLC, and its owner, Lesley L. Payne, both located in Richardson, Texas, from making deceptive claims when marketing any product or service, including credit repair services. In addition, the settlement bars the defendants from collecting money from consumers who purchased services before July 10, 2008, and from disclosing or benefiting from customers' personally identifiable or financial information.

The settlement also imposes a judgment for consumer redress of $210,000, which, ironically, is suspended due to the defendants' inability to pay.

Source: Consumer Affairs