CFPB Reaches Multibillion Dollar Settlement with Credit Repair Conglomerate

This happened back in August. A reminder that no matter how 'legit' and 'big' credit repair companies look on the internet, there's a good chance they are or have been operating in violation of the law. There were already quite a few of these CFPB actions taken against other credit repair places. "Largest credit repair brands in America, including Lexington Law and CreditRepair.com, perpetrated years long scheme to illegally harvest billions in fees" "WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) entered into a proposed settlement with a ring of corporate entities operating some of the largest credit repair brands in the country, including Lexington Law and CreditRepair.com . The agreement follows a ruling from the court that the companies collected illegal advance fees for credit repair services through telemarketing in violation of federal law. If approved, the settlement would impose a $2.7 billion judgment against the companies. The order will also ban the companies from telemarketing credit repair services for 10 years." Link to official government announcement: https://www.consumerfinance.gov/about-us/newsroom/cfpb-reaches-multibillion-dollar-settlement-with-credit-repair-conglomerate/