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

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


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