Credit Repairer Progrexion Goes Bankrupt After CFPB Lawsuit Loss

Credit repair firm Progrexion, accused by regulators of deceiving clients, filed bankruptcy after losing a key court ruling and facing $3 billion in claims from the US Consumer Financial Protection Bureau.

PGX Holdings Inc. and several related companies will try to sell the business, which shut down nearly all operations in response a federal judge’s ruling in March, according to Chapter 11 court papers. The judge sided with the CFPB, which claims the company violated telemarketing rules in part through deceptive practices and by illegal billing procedures.

Progrexion’s parent company is owned by investment firm Prospect Capital ...