Source: https://www.ftc.gov/sites/default/files/documents/cases/1999/05/speed.htm
Timestamp: 2018-01-22 21:56:45
Document Index: 112931345

Matched Legal Cases: ['§ 1331', '§ 53', '§ 1391', '§ 53', '§ 1681', '§ 1679', '§ 1681', '§ 45']

SPEED CREDIT - Cmp
JOHN WILLIAMS, individually and doing business as SPEED CREDIT, Defendant.
INJUNCTIVE AND OTHER COMPLAINT FOR EQUITABLE RELIEF
2. This Court has jurisdiction of this matter pursuant to 28 U.S.C. §§ 1331, 1337(a), and 1345, and 15 U.S.C. §§ 53(b), 57b, and 1679h(b).
3. Venue is proper under 28 U.S.C. § 1391 and 15 U.S.C. § 53(b).
5. Defendant John Williams is an individual doing business as Speed Credit, with his office and principal place of business at 2016 Main Streeet, Apt. 1211, Houston, Texas 77002. Defendant transacts or has transacted business in this District. At all times material to this complaint, acting alone or in concert with others, he has formulated, directed, controlled or participated in the acts and practices of Speed Credit, including the acts and practices set forth in this complaint.
7. Since at least October 1998, defendant has advertised, promoted, offered for sale, and sold credit repair products to consumers through the use of the Internet.
8. Defendant has claimed that he can improve consumers' credit histories, credit records, or credit ratings by assisting them in establishing new credit files. Defendant further claims that creating new credit files is legal.
9. Typical and illustrative of defendant's claim about his credit repair products include the following:
$PEED CREDIT REBUILD
Are you like MILLIONS of people waiting 10 YEARS for bad credit to go away?
File segregation - it's been a well guarded and costly secret to obtain for many years - but no longer!
Before, you had two choices: wait 10 years for bad credit to go away, or spend a lot of money for a credit repair service to remove the negative information.. Guess what? They DO NOT work if the information is accurate!
NOW you can get a brand new start and the major credit bureaus do 99% of the work!
What are the advantages of our system? We don't show you how to repair your existing credit history; we provide you with the chance to create a brand new one, free of bankruptcies, tax liens, and other blemishes!
The secret to our system is FILE SEGREGATION. What is it? We'll show you!
Currently, your credit file is based on your social security number. That's because it's a common and easy way for your employer, credit companies, and other businesses to keep track of you with one simple, unique number. The bad news is that you only get one social security number.
There IS another option! By federal law you get one chance to file for a new tax identification number. The new tax id has the same number of digits and serves the same purpose as your SSN, BUT WITH THE ADVANTAGE OF A TOTALLY NEW CREDIT FILE! It's important to remember that you only have one chance to do this, so be sure to pay attention to the carefully designed steps in our program!
Our plan is based on existing government law! The IRS will GLADLY supply you with the necessary paperwork, and by following the guidelines in our report, YOU can re-establish your personal credit rating!
What about credit reporting agencies?
If you follow our plan, these agencies will HELP you create a good personal credit rating! Your new file will NOT be associated with your current or old file! You can and will re-establish your personal credit rating with ALL major credit reporting agencies!
Return this form, along with your payment to:
8621 Wilshire Blvd.,
1-888-851-8793 (24-hours)
All orders paid by money order will be shipped within 10 days, allow 30 days for checks.
10. The Beverly Hills address listed on the Internet site is that of a private mail box business. Mail addressed to Speed Credit is forwarded to defendant in Houston, Texas.
12. Section 404(a)(2) of the Credit Repair Organizations Act prohibits all persons from making any statement, or counseling or advising any consumer to make any statement, the intended effect of which is to alter the consumer's identification to prevent the display of the consumer's credit record, history, or rating for the purpose of concealing adverse information that is accurate and not obsolete to any consumer reporting agency, as defined in 15 U.S.C. § 1681(f), or to any person who has extended credit to the consumer or to whom the consumer has applied or is applying for an extension of credit. 15 U.S.C. § 1679b(a)(2).
14. In numerous instances, defendant has made statements to consumers or counseled or advised consumers to make statements, the intended effect of which has been to alter the consumer's identification to prevent the display of the consumer's credit record, history, or rating for the purpose of concealing adverse information that is accurate and not obsolete to consumer reporting agencies, as that term is defined in 15 U.S.C. § 1681(f), or to persons who have extended credit to those consumers or to whom those consumers have applied or are applying for extensions of credit.
16. In connection with the advertising, marketing, promotion, offering for sale, or sale of credit repair products, to induce consumers to purchase their products defendant has, expressly or by implication, represented that through the use of his products, consumers can legally alter their identifications to conceal adverse credit information from consumers' credit records, credit histories, or credit ratings by obtaining alternative tax identifications to use, instead of their Social Security Numbers, for credit purposes.
17. In truth and in fact, through the use of defendant's products, consumers cannot legally alter their identifications to conceal adverse credit information from their credit records, credit histories, or credit ratings by obtaining alternative tax identifications to use, instead of their Social Security Numbers, for credit purposes.
18. Therefore, the representation set forth in paragraph 13 is false and misleading and constitutes a deceptive act or practice in or affecting commerce, in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).
(b) Permanently enjoin defendant from violating the Credit Repair Organizations Act and the FTC Act as alleged herein, in connection with the advertising, promoting, offering for sale, and sale of credit repair products or services;
(c) Award such relief as the Court finds necessary to redress injury to consumers resulting from defendant's violations of the Credit Repair Organizations Act and the FTC Act including, but not limited to, rescission of contracts, the refund of monies paid, and the disgorgement of ill-gotten monies; and
W. DAVID GRIGGS,