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FTC Halts Turbo Solutions for Deceptive Credit Repair and Identity Theft Fraud

Turbo Solutions Inc.March 18, 2022Federal Trade Commission

Summary

The FTC obtained an injunction against Turbo Solutions Inc. and Alex V. Miller for operating a deceptive credit repair scheme that filed fake identity theft reports without consumers' consent. The scheme charged illegal advance fees and made false promises about removing negative credit items. The court order halts the operation and seeks consumer redress.

Remedy

The court issued an injunction halting the operations of Turbo Solutions Inc. and Alex V. Miller. The complaint seeks civil penalties and consumer redress.

Injunction

Contract Impact

In-house legal teams should review customer agreements for credit repair services, focusing on clauses governing fee structures to prohibit illegal advance fees, service representations to eliminate false promises about credit removal, consent mechanisms for filing identity theft reports, and compliance warranties ensuring adherence to the Credit Repair Organizations Act and Telemarketing Sales Rule. Changes may include adding explicit terms on fee timing (e.g., prohibiting upfront payments), mandatory consumer consent for report filings, performance metrics or guarantees for credit improvement, and audit provisions to monitor compliance and prevent deceptive practices.

Contract Search Terms

credit repair agreementadvance fee clauseidentity theft report authorizationservice representation warrantyCROA complianceTSR adherenceconsumer consent provisionsfee refund policydispute resolution termsaudit rights

Laws Cited

Credit Repair Organizations ActTelemarketing Sales Rule

Violation Types

Entity Details

Entity

Turbo Solutions Inc.

Also known as: Turbo Solutions

Industry

Financial Services

Official Sources

Source Evidence

Entity Name
"Turbo Solutions Inc."
Laws Cited
"Credit Repair Organizations Act (CROA)"
Laws Cited
"Telemarketing Sales Rule (TSR)"
Violation Types
"filed false identity theft reports—usually without customers’ knowledge"

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