$10.9 million settlement in credit repair scheme: 443,000 people are eligible

More than $10.9 million is being sent to consumers harmed by an organization that promised to repair their credit, the Federal Trade Commission said.
The Federal Trade Commission announced last week a settlement involving a credit repair operation known by multiple names – Financial Education Services, United Wealth Education, United Credit Education Services, and Youth Financial Literacy Foundation.
Federal officials said the company preyed on consumers with low credit scores by luring them with false promises of an easy fix to their credit scores, then recruiting them to join a pyramid scheme selling credit repair services to others, costing them millions of dollars.
“These companies promised to clean up people’s credit but failed to deliver. Meanwhile, honest businesses make money selling products and services, not by recruiting, and the drive to recruit, especially when coupled with inflated income claims, is the hallmark of an illegal pyramid,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a 2024 statement about the settlement. “The FTC is committed to stopping deceptive credit repair tactics and shutting down illegal pyramid schemes that prey on struggling consumers.”
FTC settled with FES and its owners in 2024 and checks are now being sent to 443,048 customers. The average refund is $19.
In Alabama, 10,177 people are owed a total of $240,000. The average payment is $18, according to FTC data.