In addition, the defendants allegedly requested and collected upfront fees for credit repair services from consumers. Under the TSR, companies can only charge fees for telemarked credit repair services after providing documentation to consumers that the promised results have been achieved.
At the time of enrollment with CreditRepair.com or Lexington Law, consumers paid a fee between $9.99 and $14.99 for a complete copy of their Transunion credit report. The defendants allegedly told consumers that the need to pay the fee in order to start the credit repair process.
After signing-up with either CreditRepair.com or Lexington, consumers are then charged $99.95 for their first credit repair service work fee. The defendants allegedly charged the fee fifteen days after a consumer’s enrollment. After that, consumers paid ongoing monthly of $79.95 to $129.95 for credit repair services.
The CFPB is asking the court to impose appropriate injunctive relief against the defendants for their violations including refunds of monies to consumers, disgorgement or compensation for unjust enrichment, payment of damages and civil penalties, etc.