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Alabama AG Marshall Shuts Down Fraudulent Credit Repair Company

Attorney General Steve Marshall announced on Monday that a Montgomery credit repair company has been shut down by court order at the request of his office. The Attorney General’s office reached a settlement with Scott’s Credit Repair and its owners John C. Scott and Krystal Scott, in which the defendants are prohibited from engaging in any credit reporting activity and barred from owning or managing any business within the state of Alabama.

The court issued the injunction on October 25 in response to a complaint filed by the Attorney General’s office on October 23. The Attorney General’s complaint stated that “from beginning to end, the consumer experience with Scott’s Credit Repair is rooted in deception and illegality.”

“These defendants conducted their business in flagrant disregard of the law and without concern for providing an honest and worthwhile service to their customers,” Marshall said. “This action should send a message to others that the State of Alabama will put a stop to such unscrupulous practices.”

According to a press release from Marshall’s office, Scott’s Credit Repair frequently deceived and defrauded customers in Montgomery and throughout the state. The defendants “engaged in deceptive advertising that perpetuates their empty promises of better lives for their customers, they have made false statements to both credit bureaus and to consumers, they have defrauded consumers by illegally charging them before services are completed and by charging them different rates than those they advertise, and they have failed to permit at least one consumer to cancel their services within three days in violation of the federal law governing credit repair businesses.”

The Attorney General’s office accused the defendants of several fraudulent advertising schemes, including paying customers to write fraudulent, positive reviews. Marshall’s office also alleges that the defendants practiced “jamming” to create the illusion of improved credit. In extreme cases, the defendants would claim that customers had been victims of identity theft in order to get negative items removed from their credit report.

In addition to illegal business practices, the defendants also accepted payment in a manner contrary to law. Scott’s Credit Repair repeatedly forced customers to pay for services up front, even though it is illegal to do so, and even prevented customers from cancelling services within the allowed three day window.

Attorney General Marshall was pleased to prevent such a deceptive and evil business from operating with Alabama consumers.

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