Attorney General's News Release

May 17, 2004

Court order requires New Start owner to pay $10,610 in restitution, bars him from engaging in credit repair services

Clayton, Mo. — A St. Louis man who operated a credit repair business sued by Attorney General Jay Nixon last week for breaking Missouri consumer protection laws will pay $10,610 in restitution to 29 consumers and is permanently barred from engaging in credit repair services. St. Louis County Circuit Judge Bernhardt C. Drumm Jr. signed a consent judgment and permanent injunction on May 14 that orders Kevin G. McDaniel and his business, NuStar Enterprise (which did business as New Start Credit Solutions) to repay consumers who contracted with the defendants for credit repair.

"Inaccurate information on your credit reported can be removed by the consumer, but consumers also need to know that only time and the accumulation of good credit will remove negative, accurate information," Nixon says.

Nixon says the consumers will receive between $175 and $600 each. The May 10 lawsuit charged that NuStar falsely promised consumers it could remove all negative information--even if accurate--and guaranteed to consumers that if negative information was not removed from their credit reports within 365 days, they would receive a 150 percent refund of their contract.

Other consumers who have proof of payment to McDaniel or his credit repair business may be eligible for restitution if they file a claim with the Attorney General's Office by May 14, 2005. Consumers who have such claims or other complaints about credit repair scams should call the Attorney General's Consumer Protection Hotline at 1-800-392-8222 or obtain a complaint form.

Nixon said consumers can remove outdated or inaccurate information from their credit reports on their own at no cost by contacting one of the three major credit bureaus:

• Equifax: 800-685-1111
• Experian: 888-397-3742
• Trans Union: 800-916-8800

Consumers also are entitled to a free copy of their credit report if they applied for and were denied credit, insurance or employment within the last 60 days. If the application was denied because of information supplied by a credit bureau, the company denying the application must provide the bureau's name, address and phone number.

Consumers: Get more information about credit-repair scams.

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