Attorney Generals News Release

July 24, 1995

Judge orders owner of closed Springfield credit repair company to make restitution

Jefferson City, Mo. — Greene County Circuit Judge Donald Bonacker today ordered the owner of a closed Springfield credit repair service to pay restitution and penalties of at least $4,000 for falsely promising consumers he could repair bad credit for a fee. Bonacker also ordered Michael D. Jimenez to post a bond prior to offering credit repair services to consumers.

Attorney General Jay Nixon filed suit in May against Jimenez, who did business as Cal Consumer Services. Nixon alleged that Jimenez advised his clients to mislead creditors and credit reporting agencies and that he took payments of up to $900 from clients before finishing agreed upon services.

Jimenez will be required to provide $2,500 for restitution to consumers who file valid complaints with the Attorney General's Office by Aug. 23, 1995. If the valid complaints exceed $2,500, Jimenez will be required to make full restitution above this amount. Consumers should send complaints to Attorney General's Office, P.O. Box 899, Jefferson City, MO 65102.

Bonacker also ordered Jimenez to pay a penalty of $1,500 to the Missouri Merchandising Practices Revolving Fund.

Consumers can learn more about credit repair scams through a free brochure from Nixon's office. 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 is 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