Marketing Consultant
Progrexion Marketing, Inc.Information and Alerts
Service Area
- UT
Alert Details
This business has 1 alert.
Government Actions
CFPB v. Progrexion Marketing, Inc., et al
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On August 30, 2023, the Consumer Financial Protection Bureau (CFPB) entered into a settlement with Progrexion Marketing, Inc.; CreditRepair.com, Inc.; and John C. Heath, Attorney at Law, PLLC, dba Lexington Law to resolved a pending lawsuit filed in May 2019.
CFPB filed the lawsuit that alleged the business(es) violated the Telemarketing Sales Rule (TSR) by requesting and receiving payment of prohibited upfront fees for their credit repair services. Under the rule, companies can only charge fees for telemarketed credit repair services after providing consumers with documentation reflecting that the promised results have been achieved. That documentation cannot be provided to consumers until more than six months after the results were achieved. The CFPB also alleges that Progrexion and its subsidiaries violated the TSR and the Consumer Financial Protection Act by making deceptive representations in its marketing, or by substantially assisting others in doing so.
The business(es) filed for Chapter 11 bankruptcy and shut down about 80 percent of their business, including their call centers, and laid off about 900 employees. They agreed to comply with the settlement agreement without admitting any wrong doing.
Under the settlement agreement, the business(es) may pay a $2.7 billion judgment for consumer relief, $64 million in civil penalties and they are banned from telemarketing credit repair services for 10 years.
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