Attorney General's News Release

May 15, 1995

Nixon sues two Springfield credit service companies; warns consumers to avoid promises of easy credit repair

Jefferson City, Mo. — Promises to fix bad credit ratings or erase bad credit for a fee usually are nothing more than ways to take someone's money, Attorney General Jay Nixon said today in filing separate suits against the owners of two closed Springfield credit repair services. Nixon said Michael D. Jimenez, who did business as Cal Consumer Services, and Stanley Edenfield, who did business as Personal Financial Services, falsely promised consumers they could repair bad credit for a fee.

“People who go to credit repair services usually are in dire financial straits, but a credit repair service won't provide the answers,” Nixon said. “Only time will repair a bad credit history. There are no quick or easy fixes.”

Nixon alleged that Jimenez advised his clients to lie to creditors and credit reporting agencies and that he took payments of up to $900 from clients before finishing agreed upon services. Nixon said Edenfield allegedly charged an advance fee of $150 from clients in violation of state merchandising practices law.

Such schemes are common among credit repair companies, Nixon said, and he warned consumers to beware of companies that promise to remove bad information from credit reports.

Consumers can learn more about credit repair scams through a free brochure Nixon's office is making available. The brochure provides information on how to properly file a dispute on information in your credit file, how to spot credit repair scams and how to take control of credit.

The brochure will be available through several credit bureaus throughout Missouri. Nixon said his office is working in cooperation with credit bureaus and non-profit credit counseling services to alert consumers about the pitfalls of paying a credit repair service in the hopes of erasing bad debt.

The brochure also can be obtained by contacting the Attorney General's Consumer Protection Hotline at 1-800-392-8222. Speech- or hearing-impaired persons may call 1-800-729-8668.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818