The Federal Trade Commission (FTC) is issuing more than $3.5 million in refunds to consumers affected by a deceptive credit-repair scheme known as The Credit Game. The refunds stem from a 2022 enforcement action against the operationās founders, Michael and Valerie Rando, and their affiliated companies.Ā
Background on the FTC LawsuitĀ
According to the FTCās complaint, the Randos and their businesses charged consumers hundreds or even thousands of dollars for credit-repair services that failed to deliver meaningful results. The lawsuit alleged a range of deceptive practices, including:Ā
- Misrepresenting the legality and effectiveness of their servicesĀ
- Promising refunds that were not honoredĀ
- Submitting false information to credit-reporting agenciesĀ
- Promoting a business model that encouraged others to launch similar illegitimate credit-repair schemesĀ
- Advising consumers to pay for these services using COVID-19 tax relief funds, in violation of the COVID-19 Consumer Protection ActĀ
As a result of the FTCās enforcement action, the court issued an order permanently banning Michael and Valerie Rando from operating in the credit-repair industry. The order also required them to surrender certain assets to fund consumer refunds.Ā
Refund Distribution DetailsĀ
The FTC is distributing refunds to 9,224 consumers affected by the scheme. Refunds are being issued via checks and PayPal payments:Ā
- Check recipients should cash their checks within 90 days of the issue date, as noted on the check.Ā
- PayPal recipients must redeem their payments within 30 days.Ā
Consumers with questions about their refunds can visit FTCās refund tracking site or contact the refund administrator for additional information.Ā
Sign Up for theĀ Twice Monthly Newsletter
Just enter your email address at the top orange bar at:
Collection Compliance Experts ā āThe Power of Expertise: Oversight Perfectedā
Itās that easy!Ā Twice a month ā we provide blog updates and Resources for the Collection and Industry Professional.Ā
Your email is just for this newsletter.Ā We never sell your information.Ā No fee.Ā Opt-out at any time.
Author:Ā Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clientsā criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jenniferās guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
