Attorney General announces lawsuit against Denver-based credit-repair company

DENVER — Colorado Attorney General John Suthers announced today that attorneys from his office’s Consumer Protection Section have filed a lawsuit against Veracity Credit Consultants, a Denver-based credit-repair company.

According to the complaint, filed in Denver County District Court, the credit-repair company is suspected of charging upfront fees for its services, which is illegal under state and federal law. The company, according to the complaint, required that consumers pay an initial setup fee of up to $99 and monthly fees of up to $79. Under Colorado law, a credit-repair firm can only charge fees once its services are complete.

Veracity also is alleged to have failed to disclose to its clients the total amount they would be charged for credit-repair services. The company also advertised that it could “optimize” consumers’ credit records by erasing or repairing bad credit. Under the federal Fair Credit Reporting Act and Colorado Consumer Credit Reporting Act, credit bureaus are allowed to report negative information about a consumer’s credit for seven years and information concerning bankruptcies for 10 years. 

“Consumers trying to work their way out of debt and improve their credit should carefully examine the promises any credit-repair company makes,” Suthers said. “Consumers also should beware of any company that charges upfront fees for any credit-repair services. Upfront fees are prohibited under Colorado and federal law.”

Suthers said the Colorado Credit Services Organization Act and similar federal laws prohibit:

  • Prohibit untrue or misleading statements and representations;
  • Prohibit advance fees for services;
  • Require disclosure of the total amount a consumer will have to pay for credit repair services;
  • Require disclosure about when accurate information can be removed from credit reports;
  • Require disclosure of a consumer’s right to correct inaccurate information; and,
  • Providing consumers a five-day right to cancel a credit repair contract.

For more information on consumer-lending laws, visit


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