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
One Simple Way to Reduce Your Risk of Late Payments on Personal Loans
According to a study of more than 400,000 Sallie Mae clients, including borrowers’ credit scores…
CFPB Prompts Americans to ‘Start Small, Save Up’
The Consumer Financial Protection Bureau (CFPB) announced a new “Start Small, Save Up” initiative this…
Many Americans Concerned About Their Debt
One in three Americans is losing sleep over their debt, according to a survey by…
Mortgage Rates Charge Back, Moving Toward Yearly Highs
Freddie Mac reports that the average 30-year fixed mortgage rose to 4.62 percent this week,…
Why women notoriously have more credit card debt than men
It’s no surprise that Americans love their credit cards. So much so, that outstanding credit…
Managing Money: ‘Everyone’s Responsibility’
Especially when the economy at large faces a downturn, consumers struggle to bounce back from…