The Federal Trade Commission has taken action against Financial Education Services and its owners, Parimal Naik, Michael Toloff, Christopher Toloff and Gerald Thompson, as well as a number of related companies. In response to a complaint filed by the FTC, a federal court has temporarily shut down the credit repair company. The FTC’s complaint alleges that the company preys on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to sell the same services to others.
According to the FTC’s complaint, Michigan-based Financial Education Services, also doing business as United Wealth Services, has operated since at least 2015. The company claims to offer consumers the ability to remove negative information from credit reports and increase credit scores by hundreds of points. Their techniques, according to the complaint, are rarely effective and in many instances harm consumer’s credit scores.
