North Carolina Department of Justice
North Carolina Department of Justice
North Carolina Department of Justice
Submit this request

AG Cooper stops credit repair scheme that faked police reports

Release date: 8/17/2011

Wake County company charged up to $2,000 to raise credit scores

Raleigh: A Raleigh company that used fraudulent police reports to try to increase consumers’ credit scores has been ordered to stop offering credit repair services, Attorney General Roy Cooper announced today.  
 
“This scam rips off consumers and ties up local police,” Cooper said. “Consumers lose hundreds or even thousands of dollars and police waste precious time investigating fake claims.”
 
This week, Wake County Superior Court Judge Henry W. Hight signed off on Cooper’s request to temporarily bar Monterrio Dieshaun Adams, doing business as M&M Business Concepts, LLC, from offering credit repair services and charging consumers advance fees for help with their credit. Cooper is seeking to permanently ban Adams’ fraudulent business practices and win consumer refunds and civil penalties.
 
Cooper’s office was first alerted to the fraudulent scheme by a detective with the Raleigh Police Department. [see attached affidavit
 
More than 300 consumer files obtained from the company show that Adams created fraudulent police reports using a computer template to falsely claim that the consumers had been victims of identity theft.  He would then send the false police report to a credit reporting agency, like Equifax, with the goal of convincing the agency that negative information on the consumer’s report was a result of identity theft. His goal was to get credit reporting agencies to raise consumers’ credit scores.  However, the police report and disputed information was routinely sent back to the creditor for verification, which led to the scheme being discovered. In the end, consumers got no real credit repair help.
  
According to Cooper’s complaint filed with the court, this outfit advertised on Craigslist that it could repair consumers’ credit histories and raise their credit scores, making it easier for them to get loans or credit cards.  Upfront fees for these services ranged from $150 to $2,000, with most consumers paying between $500 and $700. Under state law, it is illegal to charge an upfront fee for credit repair services. 
 
“If you want to improve your credit, beware of companies who say they can help for an upfront fee,” Cooper said. “For real help getting on the right track financially, seek out a non-profit credit counselor in your community.”
 
Tips on how to spot a credit repair scam are available on the Attorney General’s website, www.ncdoj.gov .

  Contact:  Noelle Talley, (919) 716-6413