Attorney Generals News Release

October 13, 1995

Nixon obtains TRO to shut down credit repair business

Jefferson City, Mo. — A Rhode Island-based credit repair service that promised advice to consumers in Springfield on how to set up a completely new identification to avoid bad credit reports has been ordered to stop doing business in Missouri by the Greene County Circuit Court.

Attorney General Jay Nixon obtained the temporary restraining order on Wednesday against Second Chance Credit Service Inc., based in Smithfield, R.I. Nixon charged that Second Chance misled consumers into purchasing information that was going to give them “a second credit chance” by hiding information about their old credit history and creating a new credit file with credit bureaus.

Second Chance allegedly provided advice, for a fee of $99, on how to apply for a new Social Security number and how to set up a new identification in order to avoid having items from old credit files merged into new credit files.

“The only 'second chance' with this scheme was another opportunity for consumers to go deeper in debt,” Nixon said. “This business told consumers how to try to use deceit to change information on their credit reports. Sleight of hand won't clear up a bad credit history. Only time can repair it.”

Credit repair services often charge advance fees for loans, misrepresent themselves to credit reporting agencies, and do little or nothing to help consumers, Nixon said. He warned consumers to beware of companies that promise to remove bad information from credit reports for a fee.

A hearing date on Nixon's request for an injunction against Second Chance is scheduled for Oct. 19. Nixon is asking for restitution for Second Chance customers and any penalties, attorneys' fees and court costs deemed appropriate by the court.

Consumers who have complaints about credit repair services can call 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