CFPB Secures Multibillion Dollar Settlements with Credit Repair Companies

The Consumer Financial Protection Bureau (CFPB) has reached a proposed settlement with a group of corporate entities, including Lexington Law and CreditRepair.com, for illegally collecting advance fees for credit repair services through telemarketing. The settlement, if approved, would impose a $2.7 billion judgment against the companies and ban them from telemarketing credit repair services for 10 years. The companies are accused of using fake real estate and rent-to-own opportunities to deceive customers. The CFPB's action highlights the need for reform in the credit reporting and scoring system.