Did you receive a notice from CFPB? Did you receive a mail about a class action that CFPB seeks $3.1B judgment against credit repair companies it claims unlawfully charged consumers? This review will help you partake in the class action settlement after confirming the authenticity of the mail.
What Is CFPB class action which seeks $3.1B judgment against credit repair companies it claims unlawfully charged consumers Settlement?
The Consumer Financial Protection Bureau (CFPB) is asking a Utah federal judge to order credit repair companies to pay more than $3.1 billion in redress for consumers who were allegedly illegally charged for credit repair services.
The CFPB is represented by Maureen Mcowen, Kevin E. Friedl, Jonathan Reischl, Tracy L. Hilmer and Alicia Ferrara.
The name of the case is Bureau of Consumer Financial Protection v. Progrexion Marketing, et al., Case No. 2:19-cv-00298, in the U.S. District Court for the District of Utah.
What Is This Class Action All About?
On Tuesday, the CFPB filed a motion seeking a $3.1 billion CFPB judgment on behalf of consumers that the credit repair companies Lexington Law and CreditRepair.com allegedly wrongfully charged.
The CFPB alleges the credit repair companies charge two types of fees: a $15 fee when the consumer signs up for services and recurring fees that kick in within about two weeks and recur monthly.
The CFPB’s motion notes federal law requires credit repair companies to show that they have achieved results before charging clients. The bureau says the law empowers consumers to withhold payments when credit repair is not achieved.
The defendant companies allegedly failed to comply with federal law and deprived consumers of the ability to withhold payment.
“Instead, defendants charged these consumers, many of whom were highly financially vulnerable, hundreds of dollars in illegal upfront fees,” the CFPB’s motion says.
The CFPB estimates the defendants’ customers will pay millions of dollars in credit repair fees each month the credit repair companies continue their unlawful billing practices.
If the judge grants the CFPB’s motion, the $3.1 billion judgment would be the bureau’s largest in a contested action.
Who Is Eligible?
The settlement benefits all individuals who hired a debt-consolidation company, credit repair agency or debt settlement company that made unkept promises or charged you before performing services.
How To Be Part of This Settlement
For class member to partake in this settlement, class members must submit a valid claim on the settlement website.
What Is The Pay For This Settlement?
The pay for this settlement varies and the proof of purchase is not necessary.
Conclusion
As you submit your claim to the settlement website, just like the Roundup class action settlement we have reviewed, you’re doing so under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim.
