Federal Trade Commission v. Keith H. Gill Richard Murkey

It has been said that bad credit is like a “Scarlet Letter.” As Americans’ reliance on credit has increased, so-called “credit repair climes” have emerged, preying on individuals desperate to improve their credit records. These organizations typically promise they can have any negative information removed permanently from any credit report ... for a fee. On September 30, 1996, Congress enacted the Credit Repair Organizations Act (“CRO Act”), 15 U.S.C. §§ 1679 — 1679j, to ensure that the clinics provide potential customers with the information needed to decide whether to employ the services of such an organization and “to protect the public from unfair or deceptive advertising and business practices by credit repair organizations.” 15 U.S.C. § 1679 (b).

The Federal Trade Commission (“FTC” or “Commission”) filed the instant action for injunctive and other equitable relief on March 2, 1998, against Defendants Keith H. Gill and Richard Murkey for alleged violations of the CRO Act and the Federal Trade Commission Act, 15 U.S.C. § 45 (a). Defendants have, since 1995, offered services to remove any type of negative information from consumers’ credit reports. Defendants promised a “free…