The Charges
Lexington Law and CreditRepair.com, two of the largest credit repair companies in the United States, found themselves in the legal spotlight. They were accused of breaking the law by charging illegal upfront fees and engaging in deceptive, bait-and-switch advertising for their credit repair services. These allegations were serious, considering that these companies claim to improve people’s credit, a vital financial aspect for many consumers. Victims reportedly made payments for Credit Repair Services between March 8, 2016, and August 30, 2023, after being subjected to telemarketing regarding the defendants’ Credit Repair Services. Alternatively, consumers may also have made a payment to the companies between July 21, 2011, and August 30, 2023, after being live-transferred by one of their marketing affiliates. This alleged deceptive marketing led to an investigation by the CFPB.
Victim Compensation
The CFPB has engaged JND Legal Administration to manage payments for this case and answer consumer inquiries. For questions related to this case, consumers can visit www.cfpb-lexlaw.org, call 855-680-8991 or 855-680-6810 for a telecommunications device for the deaf, email info@cfpb-lexlaw.org, or write to Lexington Law Matter, c/o JND Legal Administration, P.O. Box 91015, Seattle, WA 98111.
Important Dates
The case has been ongoing since December 5th, 2024. For more information about the case, readers can read the court order and press release, or view older versions of this page at the public archive.
Implications for Credit Repair Companies
This case serves as a stern warning to credit repair companies about the importance of complying with consumer protection laws. It highlights the consequences of deceptive marketing and charging illegal upfront fees. As consumers become more aware of their rights, it’s vital for credit repair companies to review their marketing strategies and fee structures, ensuring they align with legal requirements and ethical standards.
Conclusion
The legal proceedings against Lexington Law and CreditRepair.com underscore the importance of fair business practices and consumer protection. As we continue to observe the case, it’s clear that it will have lasting implications for the credit repair industry. Stay updated with the latest developments in this case and more by subscribing to fintechfilter.com. For more insights into the world of Fintech, check out our other articles here.