73.  FTC v. Donna Payne, d/b/a Strategic Information Services, (N.D. Ohio)

74.  FTC v. Frederick P. Ray, d/b/a F.P.R., Civil Action No. 99-04703SVW (RNBx) (C.D. Cal.)

75.  FTC v. James Fite, d/b/a Internet Publications Civil Action No. 99-04706JSL (BQRx) (C.D. Cal.)

76.  United States of America v. David Story, d/b/a Network Publications (N.D. Tex.)

77.  FTC v. John Williams, d/b/a Speed Credit (S.D. Tex.)

78.  FTC v. Eric Volkert and Cynthia Volkert, d/b/a Fresh Start Publication, Civil Action No. H-99-1326 (S.D. Tex.)

79.  FTC v. West Coast Publications, LLC. (C.D. Cal.)

Defendants: Donna Payne, Frederick P. Ray, James Fite, David Story, John Williams, Eric Volkert and Cynthia Volkert, West Coast Publications, LLC. and Gilberto Lopez

Type:  Online Promises of a New Credit Identity & Credit Repair

Defendants offer credit repair kits for $21.95 to $129.95 through Internet Web sites and e-mail. They promise to give consumers a new credit identity, saying: "Anyone can have a New Credit File virtually overnight. . . "; "WIPE OUT ALL OF THE OLD BAD CREDIT ON YOUR OLD FILE. . . .'; and "Credit Start Over. There's a way to obtain a new Social Security No. . ."

In its second crack-down against credit schemes in 1999, the Commission (and in one case theDept. of Justice) filed suit alleging violations of Section 5 of the FTC Act and Section 404(a)(2) of the Credit Repair Organizations Act "CROA." The government has sought injunctive relief and redress for consumers.

The settlements will provide consumer redress for victims of the scam; bar future violations of the Credit Repair Organizations Act; bar deceptive claims about file segregation -- including claims that it is legal -- and require that the defendants notify their victims that using a false identification number to apply for credit is a felony. Thirteen of the sixteen settlements announced as part of the sweep provided for full consumer redress. Financial declarations filed by three defendants indicate an inability to provide redress. (Not all of the cases in the sweep were Internet related. Also, some of the cases included in the settlement are discussed during the first sweep from February 1999.) Their settlements contain provisions to allow reopening of the issue if defendants are found to have misrepresented their inability to pay. All the settlements contain record keeping provisions to allow the FTC to monitor compliance.

The Commission votes to accept the proposed stipulated final judgments were 4-0.

http://www.ftc.gov/opa/1999/9905/id21a4.htm (press release - sweep)