The Colorado Attorney General’s office filed a lawsuit against Veracity Credit Consultants, a Denver-based credit-repair company.
According to the complaint filed in Denver County District Court, the company is suspected of charging upfront fees for its services, which is illegal under sate and federal law. John Suther’s office claims that the company required consumers to pay an initial set-up free of up to $99 and monthly fees of up to $79. Under Colorado law, a firm can only charge fees once its services are complete.
Veracity is also charged with failure to disclose to its clients the total amount they would be charged for credit-repair services. The company also claimed that it could erase or repair bad credit, even though Colorado and federal law allows credit bureaus to report negative information about a consumer’s credit for seven years.