The FTC alleged that the defendants guaranteed consumers that they would piggyback them on one or several credit cards held by unrelated account holders with good credit histories. In exchange, the defendants asked consumers to pay upfront fees ranging from $325 to $4,000, which is illegal.
The defendants allegedly claimed that credit piggybacking is legal. However, the FTC has never determined that credit piggybacking is legal and the Equal Credit Opportunity Act does not protect such practice.
In a statement, the Bureau of Consumer Protection Director Andrew Smith said, “Good credit isn’t for sale. This company charged people thousands of dollars based on hollow promises that ‘piggybacking’ on a stranger’s good credit would raise their credit score or help them get a mortgage.”
Settlement agreement
Under the proposed settlement agreement with the FTC, BoostMyScore and Airy will be prohibited from selling fake access to another consumer’s credit as an authorized user.
Additionally, the defendants are also prohibited from collecting advance fees for credit repair services, from misrepresenting a product or service as legal as well as the terms of a refund or return policy.
