CFPB Shutting Down Prime Marketing Holdings for Lying to Consumers

Sep 26, 2017

No one can deny the importance of a good credit score. Low credit scores are associated with higher interest rates, credit obtaining challenges, higher insurance rates, larger deposits for apartments and utilities, and other difficulties related to anything that involves payments.

That’s the reason why people turn to credit repair companies so often to have their credit “fixed”, or have their credit score significantly improved. However, not all credit repair companies can prove to be trustworthy.

Repairing Your Credit

There are 2 main credit scoring systems that most creditors rely on when assessing the creditworthiness of an applicant. The most famous system is called FICO. It was developed by Fair Isaac Corp and represented the 1st scoring model developed for banks, which began to be widely used in 1989.

The other scoring system is called VantageScore 3.0 and was developed by the three Credit Reporting Agencies (CRAs) to compete with FICO. The 3 major CRAs, Experian, TransUnion, and Equifax are called to do the same thing ─ store your information and provide it, on demand, to lenders.

Back in June 2017, the Consumer Financial Protection Bureau (CFPB) announced that Prime Credit, IMC Capital, Commercial Credit Consultants, and Park View Law (formerly known as Prime Law Experts), and several executives in charge of the various companies would pay over $2 million for the alleged illegal actions they had performed. The CFPB is an agency of the US government responsible for consumer protection in the financial sector.

If you’re a credit repair merchant looking for a reliable and low-cost credit repair merchant account for your company, consider applying to EMB, voted the #1 high risk processor in the US, boasts an A+ rating with the BBB and an A rating with Card Payment Options. Also, EMB is named one of Inc. 500’s Fastest Growing Companies of 2016.

CFPB Shuts Down Prime Marketing Holdings

The CFPB filed a lawsuit against Prime Marketing Holdings, claiming that the company had charged illegal advance fees and provided misleading information about the cost and effectiveness of its services and the nature of its money-back guarantee.

The CFPB reports that between Oct. 1, 2014, and at least June 30, 2017, Prime Marketing charged more than 50.000 consumers over $20 million for credit repair services. The final judgment would impose a ban on the company, prohibiting it from continuing its business in the credit repair industry. The company will be charged a $150.000 civil money penalty. If approved by the US District Court for the Central District of California, the proposed final judgment will go into effect.

According to the CFPB, Prime Marketing allegedly made false promises to its customers, such as:

  • Charged illegal advance fees
  • Misled consumers about its credit repair services benefits
  • Misrepresented the costs of its services
  • Didn’t disclose the limits on “money-back guarantee”

Today, you can find a large number of credit repair companies out there. However, there a lot of scams that go with them. To find the more reliable ones, you should focus on longevity, reputation, and money-back guarantee offered by these companies.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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