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FTC Stops Financial Education Services’ Credit Repair Scheme

May 31, 2022, 6:28 PM

A federal court has temporarily shut down Michigan-based Financial Education Services, an alleged credit repair scheme owned by Parimal Naik, Michael Toloff, Christopher Toloff, and Gerald Thompson, according to the Federal Trade Commission Tuesday.

The FTC alleged that the company falsely claims to offer consumers the ability to remove negative information from credit reports and increase credit scores by hundreds of points.

Financial Education Services would also allegedly recruit these consumers with low credit scores to join as agents, but the compensation structure has hallmarks of a pyramid scheme.

This story was produced by Bloomberg Law Automation.