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
Study finds older adults particularly vulnerable to scams
A larger number of older adults than currently recognized are vulnerable to fraud and scams,…
Credit Card Interest Rates Surge Over 17 Percent for the First Time Ever
The average variable rate across credit cards tracked by Bankrate surpassed 17 percent for the…
The Transformation of Automobile Purchase: 5 Significant Shifts
The automotive industry underwent a substantial shift during the global pandemic, presenting a myriad of…
3 straight months of highest-ever used-car prices
Following an 11-week “summer bounce” in Manheim Market Report prices, September ended up being the…
FTC to Prioritize Deceptive Debt Collection in 2018
The Federal Trade Commission and Consumer Financial Protection Bureau earlier this year issued a joint…
Boomerang Buyers: More People Who Lost Homes During Housing Crisis Are Buying Again
More people who lost homes to foreclosure or short sale during the housing crisis may…