Federal Trade Commission Shuts Down ‘The Credit Game’ As Scam

As announced in a recent press release from the Federal Trade Commission, a federal court has temporarily halted a bogus credit repair scheme known as “The Credit Game” for promoting a series of lies and deceptions. The FTC alleged the scheme’s operators lied to credit reporting agencies regarding information on consumers’ credit reports and pitched consumers a supposed business opportunity that was essentially starting their own bogus credit repair scheme.

The FTC filed a complaint against “The Credit Game” and its owners, Michael and Valerie Rando, alleging that the company has illegally charged consumers hundreds and even thousands of dollars for credit repair services of little to no value and told consumers to “invest” their COVID-19 governmental benefits on their unlawful services. In some cases, the company’s “services” included filing false identity theft reports with the FTC and encouraging consumers to take unlawful actions. The FTC asked the court to immediately halt the company’s illegal operations, appoint a receiver, and freeze the defendants’ assets. The court issued a temporary restraining order on May 3.

In addition to the core credit repair scheme, the defendants have also taken advantage of the ongoing pandemic by telling consumers to “invest” pandemic tax benefits into their credit repair schemes. One advertisement used the headline “Free Credit Repair From The Government.”

Question of the Week

Q. Can someone with a Power of Attorney and a death certificate access the account of a deceased member?

A. No. The power granted in a Power of Attorney document is terminated when the person granting the power (principal) passes away. Once the principal is deceased, the power of attorney document no longer grants any permissions to the attorney-in-fact.

In most cases, upon the death of the member, the account would be accessible by a surviving joint owner or the personal representative/administrator of the estate.

Resources

IDS 15-12-110
ORS 127.015
RCW 11.125.100

Compliance Alerts

Consumer Financial Protection Bureau

Advisory Opinion Affirming ECOA and Reg B Protect Post Application: The Bureau is issuing this advisory opinion to affirm that the Equal Credit Opportunity Act (ECOA) and Regulation B protect both those actively seeking credit and those who sought and have received credit. ECOA is a landmark civil rights law that protects individuals and businesses against discrimination in accessing and using credit— “a virtual necessity of life” for most people. Congress enacted ECOA in 1974, initially to address “widespread discrimination . . . in the granting of credit to women.” Accordingly, ECOA made it unlawful for “any creditor to discriminate against any applicant based on sex or marital status with respect to any aspect of a credit transaction.” From the beginning, this prohibition has protected both those actively seeking credit and those who sought and have received credit.

Fair Lending Report of the Consumer Financial Protection Bureau, May 2022: The Consumer Financial Protection Bureau is issuing its tenth Fair Lending Report of the Consumer Financial Protection Bureau (Fair Lending Report) to Congress. The Bureau is committed to ensuring fair, equitable, and nondiscriminatory access to credit for both individuals and communities. This report describes fair lending activities in supervision and enforcement; guidance and rulemaking; interagency coordination; and outreach and education for the calendar year 2021.

Report on Mortgage Servicing Metrics: The Consumer Financial Protection Bureau published a report examining mortgage servicers’ responses to the COVID-19 pandemic. The data, collected across 16 large servicers from May through December 2021, reveal homeowners continue to face significant risks and challenges connected to working with their mortgage servicers. This problem is particularly acute for those borrowers struggling to make their mortgage payments after exiting COVID-19 hardship forbearances.

National Credit Union Administration

Agencies Release Revised Interagency Questions and Answers Regarding Flood Insurance: Five federal regulatory agencies today jointly issued revised questions and answers regarding federal flood insurance law and the agencies’ implementing regulations. These Q&As replace those originally published by the agencies in 2009 and 2011 and consolidate Q&As proposed by the agencies in 2020 and 2021. The revised Q&As reflect significant changes to the flood insurance requirements made by federal law in recent years.

NCUA and CDFI Fund Hosting Webinar on Community Development Resources for Credit Unions: An overview of 2022 funding available from two federal government agencies, the National Credit Union Administration and the Community Development Financial Institutions Fund. The NCUA will present the 2022 grant initiatives of the Community Development Revolving Loan Fund. The CDFI Fund will detail its Small Dollar Loan Program and highlight other funding programs of interest.

Office of Foreign Assets Control

Notice of OFAC Sanctions ActionsThe U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing the names of one entity that has been placed on OFAC’s Specially Designated Nationals and Blocked Persons List based on OFAC’s determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of this entity are blocked, and U.S. persons are generally prohibited from engaging in transactions with it. Additionally, OFAC is publishing updates to the identifying information of one entity currently included on the SDN List. All property and interests in property subject to U.S. jurisdiction of this entity remain blocked, and U.S. persons are generally prohibited from engaging in transactions with it.

Questions? Contact the Compliance Hotline: 1.800.546.4465; compliance@nwcua.org.

Posted in Compliance News, Compliance News, Compliance Question.