Attorney General's News Release

September 27, 2006

Nixon obtains restraining order to stop Springfield man from offering fraudulent “credit repair” services

Springfield, Mo. — Attorney General Jay Nixon today obtained a temporary restraining order to stop a Springfield man from offering “credit repair” services to consumers. Nixon says at least 17 consumers filed complaints about Tim Holthaus, claiming they paid membership fees of $495 on the promise of improved credit reports but received little or no help in return.

“Mr. Holthaus has made a habit of preying upon people whose credit was bad and were willing to pay hundreds of dollars for what they thought was a quick fix,” Nixon said. “Negative, but accurate, information on your credit report can only be removed through the gradual building up of good credit. Anyone who says otherwise is trying to sell you services that won't help.”

Holthaus is the owner of Success Systems, a company he claimed provided credit repair services. Nixon alleges that Holthaus previously operated another company, Dreamlife, that also provided credit repair services. The defendant allegedly advertised Dreamlife on the Internet, claiming that for a membership fee of $495 consumers would receive credit repair services.

Consumer complaints to the Attorney General's Office stated that they saw no improvements in their credit reports after paying the membership fee, nor were they able to cancel their membership and receive their money back as guaranteed. At least 17 of those consumers filed complaints, saying they were unable to contact Dreamlife or Holthaus by phone or email.

“Mr. Holthaus' track record of taking advantage of people who are in need is well documented from his first business,” Nixon said. “We will do everything we can to ensure that those who parted with nearly $500 and got nothing in return will get that money back, and that he is prevented from continuing such fraudulent activity under a new name.”

Nixon also claims that Holthaus has made misrepresentations in his advertisements for his new business to consumers, including that Success Systems is a legitimate credit services organization as well as a fully licensed mortgage banking institution. The company is not registered as either with the Missouri Division of Finance.

Today's temporary restraining order on Success Systems and Holthaus prevents them from continuing to falsely represent that Success Systems is a legitimate credit services organization. The lawsuit also asks the court to:

• Order the defendant to pay restitution to compensate any consumers who paid the membership fee to Holthaus believing that they were receiving credit repair services;
• Order the defendant to make a payment to the Missouri Merchandising Practices Revolving Fund in an amount equal to ten percent of the total restitution awarded;
• Order the defendant to pay a civil penalty of $1,000 per violation of state consumer protection laws to the Greene County School Fund;
• Order the defendant to pay all court and investigative costs in the case.

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