Credit-Repair Company Must Repay

Colorado Attorney General John Suthers announced today that it has reached a settlement with a credit-repair company that illegally charged its customers upfront fees.

Veracity Credit Consultants LLC, a Denver-based company, is barred from charging upfront fees in exchange for credit-repair services and from misleading consumers about their abilities to cleanse consumers’ credit reports.

Under the terms of the agreement, the company must pay the state $400,000 in restitution, costs, and fees.

This settlement comes after a February 2010 lawsuit in which the state alleged the company charged upfront fees for its services, which is illegal under state and federal law. According to the complaint, the company required consumers to pay an initial setup fee of up to $99, and monthly fees of up to $79. Under Colorado law, a credit-repair firm can only charge fees once its services are complete.

Suthers warns consumers to never do business with companies that charge upfront fees for credit-repair services.