2 of the biggest credit repair companies in the U.S. has illegally requested and received payments from customers for their services. They’ve used deceptive and unlawful tactics such as false advertising to make consumers trust their services and cheat them. The CFPB has filed a lawsuit against these companies, its subsidiaries, and associates. Interested? What about a reliable and low cost credit repair merchant account?
CFPB Sues Credit Repair Companies
The CFPB (Consumer Financial Protection Bureau) has recently filed a complaint against PGX Holdings Inc. The same also refers to its subsidiaries Progrexion Marketing Inc., Progrexion Teleservices Inc., eFolks LLC, and CreditRepair.com Inc., as well as against John C. Heath, Law PLLC’s Attorney. The company is doing business as Lexington Law.
In 2018, the CFPB received more than ¼ million complaints, which really hit a record. The number represented a 6% increase as compared to 2017, as the U.S Public Interest Research Group (PIRG) reports. The data is based on 14 reports about the complaints starting from 2013.
Financial consumer complaints sent to the CFPB are on the rise. Equifax, Experian, and TransUnion, the 3 major credit bureaus, received 1/3 of all complaints in 2018. They generally received 3 times as many complaints as the largest banks.
When it comes to the defendants mentioned above, they aren’t allowed to offer, promote, originate, service and collect consumer loans for the U.S.-based customers. The lawsuit filed also points to some other companies: all of them either had some connection with the defendants or were somehow associated with them.
Reliable Credit Repair Merchant Account You Need
The complaint concerning the mentioned defendants was filed on May 2 in Federal District Court in Utah. The thing is that consumers had paid hundreds of dollars in fees hoping to make their credit scores higher and obtain better chances of getting loans on more favorable terms.
There’s no second thought on working with only a trustworthy and experienced credit repair company. What about a secure and affordable credit repair merchant account? This can’s be an issue if you turn to a reputable payment processor that specializes in the high risk field and offers exceptional terms such as the safest and cheapest merchant services in the industry.
Linda Sherry, the advocacy group Consumer Action’s spokeswoman, notes that many of this type of companies suggest doing more than they can, which isn’t doable. Besides, there’s no need to pay anyone for eliminating the errors on your credit report.
According to the Consumer Federation of America, the CFPB’s enforcement efforts have jumped by 80% since 2015. This was the most powerful year for the bureau. As for compensation (on average) to consumers, it’s dropped by 96% for each case.
To sum up, the Consumer Financial Protection Bureau has started a lawsuit against 2 large credit repair companies. They’ve allegedly been violating the Telemarketing Sales Rule by charging prohibited upfront fees from consumers. The bureau is working on stopping unlawful, deceptive, practices that cause harm to consumers across the country.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that offers a unique credit repair merchant account
at the cheapest rate. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.