CFPB Settles With Lexington

SALT LAKE CITY--(BUSINESS WIRE)--Lexington Law Firm is best known for advocating on behalf of consumers who encounter unfair, unsubstantiated, or inaccurate credit reporting.

On August 23, 2023, the Consumer Financial Protection Bureau (CFPB) settled its lawsuit with Lexington. The lawsuit named Lexington only with respect to improper billing under the Telemarketing Sales Rule (TSR) for the firm’s credit repair services. Neither the litigation nor settlement allege that consumers did not receive or benefit from the services outlined in their contracts with the firm.

Under the settlement, Lexington will not appeal a March 10, 2023, Utah District Court order that adopted the CFPB’s view of the TSR’s advance fee provision. John C. Heath, Lexington’s Directing Attorney, alerts consumers that the CFPB’s view, as reiterated in the settlement, includes the following protection for consumers:

• Consumers considering using a credit repair company should be aware that it is illegal for the company to charge them for telemarketed credit repair unless it has been six months since the company achieved its promised results.

• The consumer’s credit report has to show that the promised results were achieved six months prior to any billing.

• The advance fee provision of the TSR applies to credit repair organizations that market or sell their services over the phone, irrespective of whether they promise a specific result to consumers.

As a practical matter, any credit repair organizations that market or sell services over the phone must delay billing by a minimum of six months. Consumers should be aware that if they are talking with someone over the phone about removing negative items from their credit report or improving their credit history, this billing protection applies, even if they later sign a contract online.

With the litigation behind the firm, Lexington looks forward to focusing its attention on helping clients correct credit reporting that fails to meet legal and equitable standards.

About Lexington Law

Lexington Law was founded to revolutionize the credit repair industry, by providing ethical and effective credit repair to consumers in need. The Firm is the trusted leader in the space. Lexington’s experienced lawyers and paralegals work to protect consumer credit rights and ensure that they have fair and accurate credit reports. The services they provide empower clients to take charge of their credit, which can lead to the achievement of their financial goals.