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City of Chicago Charges Nine Credit Repair Businesses with Fraud

SHARE City of Chicago Charges Nine Credit Repair Businesses with Fraud

The city of Chicago has filed fraud charges against nine local credit repair companies.

Some of the businesses are charged with making false promises about removing bad debt. And others were allegedly charging fees before performing any services. That can only be done by highly-regulated companies registered with the Secretary of State.

Norma Reyes is Commissioner of the Department of Business Affairs and Consumer Protection. She says credit repair businesses came under scrutiny after they began heavy advertising.

REYES: We then had our investigators pretend that they were consumers, basically go undercover, and started contacting these places, getting information, seeing what it is that they are saying that they can do.

Reyes says the city reached out to the Better Business Bureau to identify victims of credit repair fraud. She says these businesses offer nothing that consumers can’t do for free by themselves.

The owner of one of the implicated businesses says he was confused by the law and is now offering refunds to dissatisfied clients. Calls to the other eight businesses were not immediately returned.

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