Shuttered credit repair firms permanently banned in state

//July 30, 2009

Companies settle accusations of offering services that customers did not receive.The Division of Consumer of Affairs said Thursday that United Credit Adjusters, Bankruptcy Masters Corp., United Counseling Association Inc. and Credit Bureau Controls Corp. and two of their officers, have permanently been banned from performing credit counseling, debt adjustment and bankruptcy work in the state.

The defendants did not admit to any wrongdoing or liability in the settlement. The companies agreed to pay $500,000 in civil penalties and $86,918 to the state under a final consent judgment issued by Superior Court Judge Thomas W. Cavanaugh Jr. in state Superior Court. The companies in question had closed prior to the settlement, said Jeff Lamm, spokesman with the division.

Under the settlement, Ezra Rishty and Ahron E. Henoch, officers with the companies, will pay $15,022 in restitution to the division on behalf of 17 former customers.

The state sued the now-shuttered companies Â which were based in Howell, Lakewood and North Manasquan Â on charges of offering credit repair and counseling services that were not received by customers. The lawsuit alleged the defendants demanded advance payment during initial consultations. The suit alleged the defendants did not provide services after receiving payments, leaving customers with bad credit scores and negative information in their credit histories.

E-mail Joao-Pierre Ruth at [email protected]

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