Federal Court Temporarily Blocks Credit Glory Network Following FTC Complaint
A federal judge in Arizona has temporarily halted Credit Glory and its network of related credit repair companies following an FTC enforcement action. Judge Steven Logan issued a Temporary Restraining Order (TRO) after the agency alleged the businesses collected nearly $200 million from consumers through deceptive marketing, unlawful fees, and other practices.
The FTC’s complaint names 17 corporate defendants and five individual defendants and alleges that the operation has engaged in unlawful practices since at least 2016.
FTC Alleges Misleading Credit Repair Claims
According to the FTC, the defendants used paid Google search advertisements to reach consumers seeking information about debts they owed to creditors or debt collection companies.
The agency alleges that the advertisements and related websites promised consumers that Credit Glory’s services could substantially improve their credit scores by removing negative information from their credit reports.
The complaint also alleges that some advertising specifically targeted military servicemembers who owed debts to military-related creditors.
FTC Bureau of Consumer Protection Director Christopher Mufarrige criticized the alleged use of paid search advertising to target consumers with promises of improved credit.
Alleged Impersonation of Creditors and Debt Collectors
The FTC also alleges that Credit Glory telemarketers led some consumers to believe they were speaking directly with legitimate creditors or debt collection companies.
Instead, according to the complaint, consumers were offered Credit Glory’s credit repair services.
The agency further alleges that the defendants disputed legitimate debts in an effort to remove negative information from credit reports. In some instances, the FTC claims the operation submitted false identity theft reports through IdentityTheft.gov without consumers’ knowledge.
According to the FTC, these practices did not produce the credit score improvements consumers had allegedly been promised.
FTC Challenges Upfront Credit Repair Fees
The complaint also focuses on how consumers were charged for Credit Glory’s services.
The FTC alleges that consumers were required to pay fees before credit repair services were provided. Telemarketers allegedly began by requesting approximately $1, sometimes describing the charge as necessary to verify a consumer’s identity or review a credit report.
Consumers were then allegedly required to pay an additional upfront fee, typically amounting to hundreds of dollars, before receiving services.
The FTC contends these advance charges violated federal restrictions governing credit repair services.
Recurring Subscription Practices Also Challenged
The FTC separately alleges that the defendants enrolled consumers using a negative-option subscription model without clearly disclosing the recurring fees that would continue unless consumers canceled.
According to the agency, telemarketers sometimes represented that consumers would be charged for only a few months. Some consumers, however, allegedly continued to incur charges until they affirmatively canceled their subscriptions.
The FTC also alleges that the companies routinely denied consumer refund requests.
Taken together, the agency estimates that the operation collected nearly $200 million from consumers through unlawful upfront and recurring charges.
FTC Alleges Violations of Multiple Federal Laws
The FTC’s complaint alleges violations of several federal consumer protection statutes and regulations, including the:
- Federal Trade Commission Act
- Credit Repair Organizations Act
- Telemarketing Sales Rule
- Gramm-Leach-Bliley Act
- Restore Online Shoppers’ Confidence Act
- Electronic Fund Transfer Act
The defendants include multiple Credit Glory entities as well as Credit Sage LLC, Joy Credit Software LLC, Clerk Credit Systems LLC, Standard Scores LLC, Collection Payments LLC, Collections Dispute LLC, Collections Expert LLC, Collections Support LLC, Credit Cop LLC, Dispute Collection LLC, Glorious Credit LLC, and Joyful Credit LLC.
The five individual defendants are Alexander Brola, Liam Emery, Marko Petkovic, Joshua Curtis, and David Naylor.
Pending Court Proceedings
The Temporary Restraining Order restricts the Credit Glory network’s operations while the FTC’s case proceeds in federal court.
Importantly, the order is an interim measure rather than a final judgment on the FTC’s allegations. The underlying claims concerning advertising, fees, subscriptions, and representations to consumers remain subject to further court proceedings.
The case adds to federal enforcement attention surrounding credit repair marketing and illustrates the compliance issues that can arise when credit repair services intersect with debt collection, telemarketing, recurring payments, and consumer credit reporting.
