SALT LAKE CITY--(BUSINESS WIRE)--Progrexion (“Company”) today announced it and certain of its wholly owned subsidiaries and affiliates have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. “This move will ensure that we set a course for a future filled with advocacy that will lead to more Americans securing financing on the most favorable terms available to them,” said Chad Wallace, CEO of Progrexion. Negative items reported onto a consumer’s credit report can cost thousands of dollars more when purchasing items that require financing.
Despite what Progrexion has believed for years is a strong legal position, the United States District Court for Utah ruled against the Company and on behalf of the Consumer Financial Protection Bureau (CFPB), regarding the federal agency’s interpretation of the Telemarketing Sales Rule (TSR). The Court has agreed with the CFPB and ruled that credit repair companies securing business by way of telephonic communication must wait six-months to bill clients after delivering its services. Although the Company continues to stand by the position it has held in court for years, that interpretation of the TSR has caused Progrexion to cease all non-service-related communications with consumers. Logically that limitation on the Company’s operation and ability to generate revenue has precipitated the need to cut its staffing levels by hundreds of employees. Through the restructuring process, Progrexion fully intends to emerge as a stronger and even more determined organization. An organization focused on addressing the needs of the 1 in 5 Americans plagued with negative items improperly reported onto their credit reports.
Progrexion will continue serving as the equalizer for consumers that rightfully believe that the system is stacked against them as they desperately look for ways to participate in the credit markets on fair and equal terms. “Our fight on behalf of the Hardest Working Americans continues,” said Wallace.
Progrexion is now focused on an expedited process to ensure it can provide clarity on the future of the Company to its customers, vendors, and employees. In the interim, Progrexion will continue operating in the ordinary course of business under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the U.S. Bankruptcy Code. The Company has filed customary motions requesting that the Court authorize its ability to use cash on hand to support this process, including payment of employee wages and benefits without interruption. The Company intends to fully pay suppliers and vendors pursuant to normal terms for goods and services provided in the post-petition period.
Headquartered in Salt Lake City, Progrexion sets the standard for quality customer service and operating efficiencies within our field. Our patent-pending technologies demonstrate a great capacity for creativity and innovation within the consumer advocacy market space. Progrexion has literally reinvented the credit repair enterprise. As advocates for fair, accurate, and relevant credit reporting for all American consumers, our employees have come to understand that they hold the keys to bettering the lives of hundreds of thousands of clients each year. They operate the technology and support services that enable consumers to repair their credit and realize their financial dreams.