The Consumer Financial Protection Bureau (CFPB) is suing two credit repair firms and their owners for allegedly engaging in abusive and deceptive sales practices.
On Thursday, the CFPB filed a lawsuit against PGX Holdings and its subsidiaries and John C. Heath, Attorney at Law PLLC
PGX is the owner and operator of CreditRepair.com, Progrexion Marketing, Progrexion Teleservices and eFolks. Mr. Heath is the Directing Attorney at Lexington Law, which provides credit repair services.
CreditRepair.com and Lexington Law are two of the largest credit repair companies in the United States. Both depend on a shared network of telemarketing affiliates.
Allegations against the credit repair firms
In its complaint, the CFPB alleged that the defendants violated the Telemarketing Sales Rule (TSR), the Consumer Financial Protection Act of 2010 and the Telemarketing and Consumer Fraud and Abuse Prevention Act.
The defendants’ telemarketing affiliates allegedly used deceptive practices to attract consumers to sign up for their credit repair services.
