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
Senate Looks to Fix ‘Broken’ Credit Reporting System
The Senate Committee on Banking, Housing and Urban Affairs held a hearing yesterday on the…
Consumers Still Wary of Risk, 10 Years After Recession
About 70 percent of Americans feel financially secure today, up from 47 percent 10 years…
Young adults turn to personal loans for debt, wedding and moving expenses
Kyle Littleton, 26, wanted to get rid of nearly $4,500 in credit card debt. The…
Vocal Deepfakes Pose an Emerging Risk to Your Bank Balance
In the recent spring season, Clive Kabatznik, a Florida-based investor, engaged in a telephonic consultation…
Small Mortgages Are Getting Harder to Come By
Attom Data Solutions reports that small mortgages are becoming scarcer for low- and middle-income homebuyers….
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…