Texas Attorney General Greg Abbott has charged two El Paso companies with unlawfully operating unlicensed credit repair and credit restoration services. Max Credit of El Paso – which is also known as Max Credit Express and Max Credit Express LLC – and its owner Jorge Almaraz; and Francisco Payan, the owner of Max Credit West, were named as defendants.
According to court documents, the defendants advertised – and continue to advertise – their services to English and Spanish speakers with poor credit. Advertising through billboards, direct mail and the Internet, the defendants marketed their purported ability to repair their customers’ credit histories and credit ratings.
State investigators say the defendants’ Web site falsely and unlawfully claims their organization is a “legal firm.” The site also inaccurately states that the defendants specialize in resolving poor credit pursuant to federal laws such as the Fair Credit Reporting Act (FCRA). However, Almaraz and Payan are not actually lawyers – and Payan has admitted he is not an FCRA expert.
The AG’s action also charges the defendants with unlawfully operating unlicensed credit service organizations (CSO). Under the Texas Credit Services Organization Act, CSOs must register with the Secretary of State and obtain a surety bond or surety account.
The investigation indicates that the defendants sold credit repair services to over 300 customers while the two companies were unregistered and lacked a bond. For their purported credit repair services, the defendants charged $695 for individuals and $1,095 per couple.
After receiving a Civil Investigative Demand – a type of subpoena – from the Attorney General’s Office, Almaraz took steps to register a newly created firm with state authorities. However, according to investigators, the defendant’s newly created, registered firm also improperly continues to make misleading claims in advertisements.
The legal action seeks restitution for the defendant’s customers as well as civil penalties of $20,000 per violation of the Texas Deceptive Trade Practices Act.
Source: Texas Attorney General’s Office
Topics Texas
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