Credit Repair Industry Loses Bid to Halt CFPB, FTC Enforcement

March 9, 2021, 10:15 PM

A federal judge dismissed the credit repair industry’s challenge against the Consumer Financial Protection Bureau and Federal Trade for enforcing limits on how firms are paid for services that promise to improve borrower credit scores.

A May 2020 lawsuit by NACSO Non-Profit Business League—which said that the agencies’ enforcement of the Telemarketing Sales Rule was unconstitutional—was filed far beyond a six-year statute of limitations that the industry group needed to meet, Judge Raag Singhal ruled Monday in dismissing the complaint.

While NASCO sued in the U.S. District Court for the Southern District of Florida on behalf of two member companies ...

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