The FTC is refunding $1.9 million to victims of a “free” credit report scam.
The refunds stem from a 2017 lawsuit by the Federal Trade Commission (FTC) against a company known as Credit Bureau Center, the regulator said Thursday (Nov. 21).
According to the FTC, the company, previously known as MyScore LLC, impersonated property owners and offered tours for properties they were not permitted to rent, if consumers first obtained credit reports and scores from their websites.
The website claimed to offer “free” credit reports and scores, but then enrolled consumers in a credit monitoring service that charged nearly $25 per month. In many cases, consumers didn’t know they’d been enrolled until unexpected charges began showing up on their bank or credit card statements, sometimes after several billing cycles.
“This case demonstrates that the FTC is persistent and tireless in its work to return money to defrauded consumers,” Samuel Levine, the director of the Bureau of Consumer Protection, said in a news release.
“But it is yet another reminder that Congress must act to restore the FTC’s authority to obtain monetary relief so that when companies break the law, the FTC can get money back for injured consumers effectively and efficiently,” he added.
A federal judge had ordered Credit Bureau Center to pay money for violating the Section 13(b) of the FTC Act, though that ruling was later vacated by the Supreme Court, which ruled the FTC cannot seek monetary relief under Section 13(b). The original judge later ruled that Credit Bureau Center also violated another section of the law. The company lost on appeal, with the lawsuit ultimately resolved in June of this year.
Representatives from the company could not be reached for comment Thursday.
Also this week, the FTC said it was sending more than $140,000 in refunds to consumers after taking action against companies that allegedly made false claims that their products were “Made in USA” or “Hand Crafted in USA.”
“‘Made in USA’ means what it says,” Levine said last year when announcing the suit. “Falsely labeling products as ‘Made in USA’ hurts consumers and competition, and the FTC will continue to aggressively enforce the law to stop deceptive claims and hold violators accountable.”
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