Office of the Attorney General News Release Archive

Thursday, January 11, 2001


AG takes action against bogus"credit repair" service

AUSTIN - Texas Attorney General John Cornyn today announced the filing of a civil lawsuit against Springs-Freeman Enterprises, Inc. doing business as New Genesis Credit Services., which operates as a credit services organization in El Paso. The lawsuit alleges that the company offers bogus or deceptive credit repair services to consumers. The lawsuit was filed in County Court at Law #3 in El Paso.

"Breaking the law and taking advantage of people will not be tolerated," said Attorney General Cornyn. "This lawsuit should send a message that you will pay the price if you operate your business illegally."

The Attorney General's lawsuit alleges that the company violates the Texas Deceptive Trade Practices Act by not providing disclosures to customers when contracts are drawn up, as required by the Texas Finance Code. The company is also accused of advertising to people that they can get a "fresh start" with their credit ratings without informing consumers that accurate information already included on a credit bureau report can not be removed.

Additionally the lawsuit alleges that the company represents itself as a "debt-pooling" service, even though it is not authorized to be such an agency according to the Texas Finance Code.

The Attorney General's lawsuit asks the court to issue a permanent injunction, stopping the company from operating in an illegal and deceptive manner. The lawsuit also asks the court to assess civil penalties of $2,000 per violation of the Texas Deceptive Trade Practices Act, not to exceed $10,000.

This case is being handled by Assistant Attorney Generals James Daross and Pedro Perez of the Attorney General's Consumer Protection Division.

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Contact Mark Heckmann, Heather Browne, Tom Kelley or Jane Dees at (512) 463-2050.
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