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Credit repair operator’s bogus letter writing earns an “F”

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RMCN Credit Services, Inc. — one of the nation’s largest credit repair companies — has agreed to settle charges that it lied to credit bureaus about information in people’s credit reports and illegally collected fees before performing any services.

Problem Number One: RMCN sent more than a million phony letters to credit bureaus. The company’s method for improving consumers’ credit reports was to systematically lie to credit bureaus and challenge negative information — without regard to its accuracy — through letters disguised as though they were sent by consumers. Company employees signed the letters using the consumers’ names, and often used fictitious reasons for disputing negative items, like “not my account,” “paid prior to collection,” and “creditor agreed to remove account.”

Problem Number Two: RMCN charged consumers more than $40 million in illegal advance fees for its services. RMCN charged two types of advance fees: a retainer that ranged from $900 to $2,000, and a monthly service charge. The company used automatic bank drafts to collect monthly service charges of $89 to $109 for the duration of its six-month program. RMCN collected the monthly service charge regardless of whether any service was performed that month. All of RMCN’s fees were collected before the company completed its six-month service.

The Credit Repair Organizations Act prohibits making any untrue or misleading statement to a credit bureau and bars the collection of any money for credit repair service before the service is fully performed.

The bigger picture here? The company’s practice of lying to credit bureaus degrades the accuracy and completeness of information in our nation’s credit reporting system. This indirectly harms all consumers because the lack of reliable credit records forces credit grantors to raise their interest rates and reduce credit availability to people with good credit histories.

If you’re looking for a way to improve your credit report, do yourself a favor and save some money, too. Anything companies like RMCN claim they can do for you for a fee, you can do yourself for free. It takes time, a conscious effort, and sticking to a personal debt repayment plan to make it happen.

Blog Topics: 
Money & Credit


Set me in to credit repair

Does this also apply to the Lexingtonlaw, firm

Lexington, who should currently hold iD theft insurance? For transunion? Who are currently resposible for identity theft in the first place?
What can you do in cases of "induced" credit issues?

need to know if Lexington is legal.

Me too! I had letters they made for me to send to hard inquiry, firtst those stay on there for 2 years and second they came back saying "frivolous and irrelevant". As far as other challenge letters, I don't know, Werent disclosed to me.

Is there any compensation for the consumers that were taken.

bad businesses need to be put out of business

they need to be but behind bars&for tons of years

Absolutely! I totally agree! Bogus companies need to be put out of business. But if we don't buy into their scam, they will be out of business. Warning! Don't pay upfront for services not started.

I am so glad you are getting these people and when you finish with them get the people on the payday loans too they are charging excessive fees and getting away with it and stealing from customers and charging entirely to much and need to be put out of businesss now and forever all of them and the ones that are online like Speedy Cash Loan and 745 CASH really needs to go they need to encourage people to save and not spend as much and open savings accounts and put a little in each week or month and save and you will not need these rip off folks so please what ever you do continue to look into payday loans and also credit repair and credit bureaus too because they are reporting wrong information on your credit reports and do not want to take them off either and people do not know what to do Expperian is not the only one look into Trans Union and also Equifax too all of them are just Bogus and need to be shut down and new company that report accuraticity reports shall be the only ones who can and will do what is right for the consumer should be on there so continue to block these greed scammers and money crubbers they all need to be put out of business now and look into some of these phone companies too like ATT they do not need no more service cause they are to high and charge too much for phone service ok got go thanks

Well said! It cost too much money to check your credit report periodically, $21.95 for Experian. I paid $40 to get all three reports and I'm paying Experian and cannot view the other two unless I pay $40 again, seriously! Just paid less than a month ago! Outragous!

You can get credit reports for free. Federal law requires Equifax, Experian, and TransUnion to give you a free copy of your credit report, when you ask, once every 12 months.

To get your free credit report, go to

There are some other situations that let you get an additional copy of your free report. You can get a free credit report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment. You must request the report within 60 days after getting the notice about the action. The notice will say the name, address, and phone number of the credit reporting company.

You can get one free report a year if you are unemployed and plan to look for a job within 60 days, or you're on welfare. You can get an additional free report if your report is inaccurate because of fraud, including identity theft.

Otherwise, a credit reporting company may charge you a reasonable amount for another copy of your report within a 12-month period.

Companies like RMCN should be banned. Most of the Credit Reports are inaccurate and in some cases fraudulent. Consumer's task of repairing their credit reports is made difficult by companies like RMCN. The whole process of Credit Reporting, Credit Companies need fundamental review.

A friend convinced me to sign up with RMCN. I did, but the next day I had a gut feeling they were doing something wrong because they charged me upfront fees of over $2000. I told them I could not afford it. They said I can pay in 3 instalments. I thought, if I can pay RMCN, I can pay my creditors so the very next day I sent a fedex cancelling the contract before the 3-day cancellation period.Thank God!! After that I read that FTC was charging them.They bombarded me with calls promises & enticements but I never responded.

I am currently not working and need my credit cleared

Lexington Law Firm needs to be investigated to. They took money for over 2 years from me. I'm disabled from CTE, from numerous Brain Injuries a lot was removed quickly because of Statute of Limitations and I told them they were passed then they keep saying their sending letters out on my behalf for this or that. Then all my scores dropped by 100 points and they couldn't tell me why or answer any of my questions. During the 2 years I paid them $100+ per month their was constant hard inquiries from some company Credco I never heard of and several others that would make 3-5 inquiries the same month. I found out from others using them they were having same problem and it was same companies doing hard inquiries I found out that they aren't supposed to charge or do anything after 6 months. I found another company who told me straight up about the 6 months but said that they could have me at my goal in 2 maybe 3 if some of companies was stubborn. 7 weeks later we hit my goal I paid the agreed amount and everything has been perfect since.Lexington Law would send me tons of emails about what they were doing and who they were sending letters to I never saw evidence of any and I could call get a so called paralegal who I believe were more like telemarketers ask questions call back 7-10 times and get different answers. When I told them I wasn't using them anymore and I told them upfront about my disabilities I was turning them in to ADA now they won't quit calling but my problem was solved in Professional manner just like it's supposed to be.

I used lexinton law. They said they rrmoved 2 items from my equifax report.. So I checked my equifax report and both of the accounts that suppose to have been removed are still on my report... also it's been 2 months since I sign up and I still ain't got no progress..

This is the second month I've been with Lexington Law - for two months I've been trying to access my account to see all they indicate they're doing, but to no avail, I'm not able to access. I've tried password reset twice, I've called twice, I've emailed - nobody ever responds. Very frustrating. Looking to drop out of the service, very dissatisfied - should have went with my instincts and hung up before agreeing to the service.

You can repair your credit by yourself, for free.  This FTC article explains your rights, and shows some do it yourself steps.

No one can legally remove negative information on your credit report that's correct and timely.  If someone says they can "erase bad credit" - that's a sign of a scam.

609 Dispute letter are being sold on Facebook from $20 to several hundreds of dollars.

Does a person simply ***Consulting*** others how to do their own self credit repair fall under the CROA?
And do you know how many thousands of people are all over Facebook and all over the internet with absolutely no licenses and they're definitely not in the credit repair organizations Act!

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