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
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,…
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…
Americans Are Plagued by Financial Anxiety — And It’s Only Getting Worse
A survey by the American Psychiatric Association finds that Americans are increasingly troubled by financial…
Turn the Post Office Into a Bank? First Check Japan
Legislative efforts to turn the U.S. Postal Service into a bank to provide cheap financial…
Scamming Grandma: Financial Abuse of Seniors Hits Record
U.S. banks reported a record 24,454 suspected cases of elder financial abuse to the Treasury…