The CFPB announced this week that it has entered into a proposed settlement of a lawsuit it filed in 2019 in Utah federal district court against a group of defendants who constitute the largest credit repair organizations in the United States.  Rather than targeting the quality or effectiveness of the credit repair services actually provided by the defendants, the lawsuit targeted the marketing methods allegedly used by the defendants to obtain referrals of consumers.… Continue Reading

Recently, PGX Holdings, Inc. (PGX), one of the nation’s largest consumer credit repair companies, and twelve affiliates have entered into Chapter 11 bankruptcy under pressure from a potential $3 billion CFPB judgment for violations of federal consumer protection laws.

In May 2019, the CFPB filed a complaint in Utah federal district court against a group of related credit repair companies for alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). … Continue Reading

The CFPB has filed a lawsuit in a California federal district court against Credit Repair Cloud (CRC), a software company, and its owner, in which the Bureau alleges that the defendants provided substantial assistance to credit-repair businesses charging unlawful advance fees in violation of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA).  … Continue Reading

The CFPB and the Massachusetts Attorney General’s Office have filed a lawsuit against a credit repair company and the company’s individual owner in federal district court in Massachusetts.  The complaint alleges that the defendants engaged in deceptive acts or practices in violation of Consumer Financial Protection Act (CFPA) and the Massachusetts Consumer Protection Law, deceptive and abusive telemarketing acts and practices in violation of the Telemarketing Sales Rule (TSR), and acts or practices in violation of the Massachusetts Credit Services Organization Law (CSO Law).… Continue Reading

A motion to dismiss has been filed by the group of credit repair companies sued by the CFPB in Utah federal district court for alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA).  Rather than targeting the quality or effectiveness of the credit repair services actually provided by the defendants, the complaint targets the marketing methods allegedly used by the defendants to obtain referrals of consumers.… Continue Reading

The CFPB has filed a complaint in Utah federal district court against a related group of companies that provide credit repair services for alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA).  Rather than targeting the quality or effectiveness of the credit repair services actually provided by the defendants, the complaint targets the marketing methods allegedly used by the defendants to obtain referrals of consumers.… Continue Reading

The CFPB recently submitted a proposed stipulated final order that would shut down a credit repair service and permanently enjoin it from “[a]dvertising, marketing, promoting, providing, offering for sale, selling, assisting in the sale of, or administering Credit Repair Services.” The proposed order would also enjoin the credit repair service from “[r]eceiving any remuneration or other consideration from, holding any ownership interest in, providing services to, or working in any capacity for any person engaged in or assisting in advertising, marketing, promoting, offering for sale, or selling Credit Repair Services.”… Continue Reading

The CFPB announced that it had simultaneously filed two complaints and corresponding proposed stipulated final judgments in a California federal district court in actions against four credit repair companies and three individuals for alleged violations of the Consumer Financial Protection Act (CFPA) and Telemarketing Sales Rule (TSR).  The judgments would require the defendants in one of the actions to pay a civil money penalty of $1.53 million and the defendants in the other action to pay $500,000 in disgorgement to the CFPB with the disgorgement payments to be deposited in the U.S.… Continue Reading

The CFPB has issued its November 2016 complaint report which highlights complaints about “other financial services,” a category that includes debt settlement, credit repair, check cashing, and money orders.  The report also highlights complaints from consumers in Oklahoma and the Oklahoma City metro area.

General findings include the following:

  • As of November 1, 2016, the CFPB handled approximately 1,035,200 complaints nationally, including approximately 27,000 complaints in October 2016.
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The CFPB announced that it has filed a lawsuit in a California federal district court against a credit repair company for alleged violations of the Consumer Financial Protection Act (CFPA) and Telemarketing Sales Rule (TSR).  The CFPB has previously brought enforcement actions against debt settlement companies, including its first criminal referral. … Continue Reading