CFPB Sues Lexington Law & CreditRepair.com

The landscape of credit repair can be treacherous. While many seek assistance to improve their financial standing, some companies engage in practices that harm consumers. Recent action by the Consumer Financial Protection Bureau (CFPB) serves as a stark reminder of this, highlighting the need for caution and informed choices.CFPB Settlement Details: Lexington Law & CreditRepair.com Under the CFPB, has entered into a proposed settlement with a ring of corporate entities operating some of the largest credit repair brands 1 in the nation: Lexington Law and CreditRepair.com. The core issue? The CFPB alleges that these companies violated the advance fee provision of the Telemarketing Sales Rule.

What Did Lexington Law and CreditRepair.com Do?

Here's a breakdown of the alleged misconduct:

• Illegal Advance Fees: The Telemarketing Sales Rule prohibits credit repair companies from charging or receiving payment until six months after providing the consumer with documentation reflecting that the promised results were achieved. The CFPB's lawsuit argued that Lexington Law and CreditRepair.com violated this rule by collecting illegal advance fees through telemarketing.

• Deceptive Telemarketing: The CFPB accused these companies of using deceptive telemarketing practices to lure in customers. This included using "fake real estate and rent-to-own opportunities" as bait to entice people to sign up for their services.

The CFPB's Response: Significant Penalties

The proposed settlement, if approved by the court, includes substantial penalties and restrictions:

• $2.7 Billion Judgment for Redress: A massive $2.7 billion judgment has been imposed against the companies to provide redress to consumers who were harmed. However, due to the companies' financial situation (they filed for Chapter 11 bankruptcy), the CFPB will determine if its victims' relief fund can be used to compensate those affected.

• 10-Year Telemarketing Ban: A 10-year ban on telemarketing credit repair services has been imposed. This ban extends to the companies themselves and any credit repair services they market through telemarketing, as well as certain marketing affiliates.

• Civil Penalties: Progrexion Marketing and the John C. Heath, Attorney-at-Law PC law firm also face significant civil money penalties.

What This Means for Consumers

This CFPB action has several implications for consumers seeking credit repair help:

• Heightened Awareness: It underscores the need to be extremely cautious when choosing a credit repair service.

• Emphasis on Legal Compliance: It highlights the importance of working with entities that strictly adhere to consumer protection laws.

• Empowerment Through Knowledge: It reinforces the value of understanding your rights and taking an active role in the credit repair process.

Ten Dollar Credit Repair: A Different Approach

At Ten Dollar Credit Repair, we offer a different approach that contrasts with the practices alleged against the companies in the CFPB lawsuit:

• No Telemarketing: We do not rely on aggressive or deceptive telemarketing tactics.

• Education-First: Our primary focus is on empowering you with the knowledge to understand your credit and exercise your rights.

• Affordable Guidance: We provide valuable information at a fraction of the cost of many traditional credit repair services.

• DIY Empowerment: We equip you with the tools and strategies to take control of your credit yourself.

Our eBook provides:

• Clear explanations of credit reporting laws (like the FCRA).

• Step-by-step guidance on disputing inaccuracies.

• Practical tips for building a positive credit history.

Choose Wisely, Choose Empowerment

The CFPB's action against Lexington Law and CreditRepair.com serves as a cautionary tale. While you may need help navigating the complexities of credit repair, it's crucial to choose a trustworthy and ethical path. Ten Dollar Credit Repair offers you the knowledge and resources to do so effectively and affordably.

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