The Federal Trade Commission has won a settlement from a firm that it claims charged an advance fee for a bogus credit-repair service.

Home Buyers Consulting Network, Inc. (HBCN) and several other defendants were charged in a civil complaint of violating the Credit Repair Organizations Act (CROA) and the FTC Act.

The settlement includes a $573,000 civil penalty and $40,000 in consumer restitution, but these assessments will be suspended and upon payment of $10,000, the FTC said. The full amounts will be demanded if the FTC finds the defendants misrepresented their financial situation, the commission added. 

According to the FTC, HBCN made several false promises on its Web sites. For example, it offered “the ability to REPAIR, RESTORE, or ESTABLISH your credit so that you may be able to qualify for 100 % home financing, lower interest rates and better quality credit,” the FTC alleged.

The firm also offered a “money back guarantee . . . to increase your credit score by 50 to 100 points or delete six derogatory items (from a consumer’s credit report),” the commission continued.

HBCN also promised consumers help with finding a home to buy, through a referral to its purported network of realtors and lenders, the FTC charged.

HBCN representatives typically demanded advance payment of at least $99 for those services, and $399 for bundled credit repair and home-buying consulting services, the FTC added.

The firm also allegedly required additional advance payments for credit repair services, typically ranging from $19 per week to $49 per month, the FTC continues.

The complaint names include HBCN, doing business as Home Buyers Network, Good Credit Co., GoodCredit.com, and 0downhomebuyers.com; and Douglas A. Moore, HBCN’s president.

As part of the settlement, the defendants are barred from further CROA violations and misrepresentations. They also are prohibited from selling or disclosing personal information about victims.

Assisting in the case against the Raleigh, NC firm were the North Carolina Department of Justice and the Better Business Bureau of Eastern North Carolina.