The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against CreditRepair.com and Lexington Law for allegedly violating the Telemarketing Sales Rule and Consumer Financial Protection Act. The regulator says the companies used deceptive advertising to defraud consumers and requested and received payment of prohibited upfront fees for credit repair services. Under federal law, if a company offers services claiming to remove derogatory information from a person’s credit history, credit record, or credit rating, fees can only be collected after a certain amount of time has passed and the promised results have been achieved. The defendants, however, charged consumers upon signup and on a monthly basis, ignoring the appropriate waiting period and without demonstrating any improvement.
Similar Posts
More People Are Now Checking Their Credit Scores
A new poll of more than 1,000 consumers finds that about 57 percent have checked…
FHA is making more mortgages available to applicants with risky debt profiles
Is it easier today for home buyers with a high debt ratio and subpar credit…
Many Americans Concerned About Their Debt
One in three Americans is losing sleep over their debt, according to a survey by…
Experian study finds most millennials need to improve borrowing behaviors before homebuying
Experian®, the world’s leading information services company, released a study today that highlights the borrowing…
Millennials Not So Keen About Credit Cards
People age 29 and younger are 93 percent more likely to have a negative opinion…
Oregon Requires Consumers to Repay Title, Payday Loans Before Lender Makes New Loan
Oregon’s governor has signed a bill that bans title loan and payday companies from making…