On December 5, 2024, the CFPB announced that it is distributing $1.8 billion to 4.3 million consumers charged illegal advance fees or subjected to allegedly deceptive bait-and-switch advertising by a group of credit repair companies including Lexington Law and CreditRepair.com. According to the CFPB, payments to victims of Lexington Law and CreditRepair.com are the largest-ever distribution from the CFPB’s victims relief fund.

In August 2023, the CFPB won a legal judgment against the credit repair conglomerate for violating the Telemarketing Sales Rule's advance fee prohibition. Following the ruling, the companies filed for Chapter 11 bankruptcy protection, closing about 80% of their operations, including telemarketing call centers. The CFPB is distributing $1.8 billion to consumers harmed by these companies due to its enforcement action.

Read the CFPB’s announcement here.

Adam Witmer

Adam Witmer is a speaker, author, and founder of the Compliance Cohort. Adam has taught hundreds of seminars and training sessions to thousands of bankers throughout the United States and teaches on all areas of regulatory compliance. Adam has written five e-books that he never published, hit a grizzly bear while driving in a National Park, and is an award winning photographer and musician (though he no longer takes photos nor plays any instruments). In his spare time, Adam can be found kayaking on the lake, doing taekwondo with his kids, working on his (project) house, or spending time with his family.

Website

Become a Free Member