FTC to Shut Down Phony Debt Relief and Credit Repair Scheme That Falsely Claims Government Backing and Presidential Endorsement

As part of its efforts to stop fraudulent and deceptive debt relief and credit repair practices aimed at financially distressed consumers, the Federal Trade Commission (“FTC”) has targeted a lawsuit against a phony debt relief and credit repair scam claiming government affiliation. According to the FTC, two websites promoting what is called the “Bill Payment Government Assistance Program,” are full of misrepresentations about the fake program. On August 19, the FTC asked a federal court to shut down the operators of two websites that claimed affiliation with the Recovery Accountability and Transparency Board, a government agency formed to oversee projects funded by the American Recovery and Reinvestment Act of 2009.