Credit Repair Group Sues CFPB Over Six-Month Payment Delays

The Consumer Financial Protection Bureau is enforcing a rule barring credit repair firms from being paid for at least six months even though Congress took action to make that rule inoperable, a trade group said in a lawsuit.

The NACSO Non-Profit Business League alleged in a complaint filed May 21 in federal district court in Fort Lauderdale, Fla., that the CFPB was violating credit repair firms First Amendment rights by enforcing a rule that prevents them from collecting payments until after they are able to show improved credit scores.

Those improvements can take at least six months to appear on ...