The FTC and credit repair

In 1914, Congress passed the Federal Trade Commission Act (FTCA), thereby creating the Federal Trade Commission (FTC). The commission was given the mission of preventing "unfair methods of competition" (Pub. L. No. 203, 1914), and was designed to complement the antitrust laws. As such, the FTC originally was conceived as a protector of business and competition, with no direct responsibility to protect consumers.

The FCT is the governing body of the entire credit industry. It has enforcement and regulatory power given to it by Congress. It wasn't until 1938 that Congress amended the FTCA to include protections for consumers as well as businesses (Pub L. No. 447). It was given power over "unfair or deceptive practices." The division of the FTC which actually enforces the laws and regulations is the Burueau of Consumer Protection.

The Division of Enforcement litigates civil contempt and civil penalty actions to enforce federal court injunctions and administrative orders in FTC consumer protection cases; coordinates FTC actions with criminal law enforcement agencies through its Criminal Liaison Unit; develops, reviews, and enforces a variety of consumer protection rules; coordinates multi-pronged initiatives to address current consumer protection issues; and administers the Bureau of Consumer Protection's bankruptcy program.