The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against 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.


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