On December 20, Arkansas Attorney General Leslie Rutledge filed a consumer protection lawsuit in the United States District Court for the Eastern District of Arkansas against Florida-based Capital Credit Solutions Inc. and Willie J. McKenzie for alleged violations of the Federal Credit Repair Organization Act, the Arkansas Deceptive Trade Practices Act, and the Arkansas Credit Services Organization Act.
According to the Complaint, Capital Credit provided credit repair services to consumers seeking to improve their credit history, credit score, and credit ratings. In an attempt to induce consumers to purchase these services, the defendants allegedly misrepresented that they could remove negative (but accurate) information impacting consumers’ credit histories, and remove open collection accounts. Defendants also purportedly placed signs throughout Arkansas, advertising their services to “Repair Bad Credit.” This unapproved signage was in locations where no permission for placement had been given. Defendants additionally advised consumers that the longer they were in Capital Credit’s program, the better the results. Defendants charged an initial up-front enrollment fee of $250 and an ongoing monthly fee of $50 for continued services.
The Attorney General seeks to enjoin Defendants from engaging in any further deceptive acts or practices, and requests an order from the Court canceling any outstanding contracts for credit repair services. The Complaint additionally requests an award of actual damages either sustained by the consumers or any amounts paid by consumers to the Defendants as well as an award of punitive damages and civil penalties.