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Consumer Finance Protection Bureau Files Lawsuit Against Credit Repair Company

  • Nov 4 2016

The federal Consumer Finance Protection Bureau (CFPB) is a government agency that oversees and enforces consumer protection rules and regulations against American companies that violate them.

Late last month, the CFPB filed a lawsuit against Prime Marketing Holdings, LLC, a major national credit repair company, for charging consumers illegal fees. These fees included unlawful advance fees, and charges for services in excess of what was initially quoted to the consumer. Prime Marketing Holdings also lied to consumers about how effective their services were, promising consumers much higher credit scores than they could and did achieve.
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The CFPB lawsuit, which alleges a variety of claims under the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act, is aimed at serving two purposes. First, to put an immediate halt to Prime Marketing Holding’s illegal and deceptive conduct. Second, to obtain restitution or relief for consumers who were unlawfully charged.

In a press release about the lawsuit, the CFPB warned consumers to be wary of credit repair companies, particularly those that make offers which seem too good to be true. If the company is promising to have virtually all of the negative credit reporting off your history, regardless of whether the information is accurate, stay away.

The CFPB has also released a consumer advisory containing tips for consumers who are working towards credit repair, or who have already hired a credit repair service. The advisory also provides advice on how to spot a credit repair scam, so that you don’t become a victim like those that hired Prime Marketing Holdings.

Time and again we have warned of the dangers and scams involved in many credit repair operations. You should always consult with a consumer rights attorney about your situation prior to consulting a credit repair company. Your attorney may even be more effective in helping you with your debt or credit problem. And if you think you may be the victim of a credit repair scam, your attorney can help you obtain relief from the company that scammed you.

If you think you’ve been scammed or are being harassed by a debt collector, third party debt buyer or even a credit repair agency, you need the help of an experienced debtor rights attorney—like those at Fitzgerald & Campbell, APLC—to review your case and discuss your options with you. Our attorneys have decades of experience representing clients in all types of consumer defense cases and we are here to help you!

Call us today for a free consultation at (855) 709-5788, or email us at info@debtorprotectors.com.

Posted in: Collection Harassment, Credit Card Lawsuits, Debt Collections, Debt Questions, FDCPA, Harassment, Loan Debt