The Federal Trade Commission (FTC) has taken action against a sprawling credit repair scheme involving 17 related companies, led by Credit Glory and its principals. The scheme has been accused of scamming consumers out of nearly $200 million since at least 2016.

The FTC's complaint outlines several deceptive practices employed by the defendants, including making false promises about their credit repair services, impersonating legitimate debt collection companies, and charging illegal upfront fees. The defendants targeted vulnerable consumers, including military servicemembers, through misleading Google search ads.

Specifically, the defendants falsely claimed that their services would significantly improve consumers' credit scores by disputing debts and removing negative items from credit reports. However, these actions did not yield any real improvements in consumers' credit scores.

In addition to false promises, the defendants charged illegal advance fees for their services, often requiring consumers to pay hundreds of dollars upfront. They also engaged in unlawful enrollment practices, charging recurring fees without clear consent from consumers, leading to ongoing financial burdens.

The FTC alleges that the defendants violated multiple laws, including the FTC Act and the Credit Repair Organizations Act. The case has been filed in the U.S. District Court for the District of Arizona, and the court has temporarily halted the operation pending further proceedings.