Credit-Repair Firms Agree to Settle CFPB Claims for $2.7 Billion

Some of the country’s largest credit-repair businesses agreed to settle US Consumer Financial Protection Bureau allegations of illegal telemarketing practices for $2.7 billion.

Included in the settlement were Lexington Law and CreditRepair.com, which are marketed “through a web of entities” including PGX Holdings Inc., the CFPB said in a statement Monday. PGX filed for bankruptcy after the court ruled in favor of the CFPB in March, finding that the credit-repair brands violated rules banning the collection of fees upfront.

CFPB Director Rohit Chopra

Photographer: Ting Shen/Bloomberg

“Americans across the country looking to improve their credit scores have turned to companies like CreditRepair.com and Lexington Law,” ...