The Consumer Financial Protection Bureau (CFPB) announced it will distribute $1.8 billion to 4.3 million customers who signed who utilized cred repair companies and allegedly subjected to "deceptive bait-and-switch advertising."
The companies in question include CreditRepair.com and Lexington Law. A district court judge ruled in August that the companies violated the Telemarketing Sales Rule’s advance fee prohibition.
“Lexington Law and CreditRepair.com exploited vulnerable consumers who were trying to rebuild their credit, charging them illegal junk fees for results they hadn’t delivered,” said CFPB Director Rohit Chopra.
How will the settlement be distributed?
Those eligible for part of the settlement do not need to the CFPB as they have all been identified and no new claims can be filed, the agency says. Checks began going out on Dec. 5 and will continue through early January.
Anyone who believes they were due a check and didn't receive one by mid-January can contact the company tasked with administering the payments
at www.cfpb-lexlaw.org.
The exact amount each person will receive was not made public. However, if it were to be distributed evenly, checks would be about $418.
