CPFB Settles With Deceptive Services Debt Relief and Credit Repair Company | PC Weiner Brodsky Kider

The U.S. District Court for the Northern District of Georgia recently issued a final judgment and order between the CFPB and a debt relief and credit repair company and its owners, for soliciting customers with false promises that the company would eliminate credit card debt. and improve credit ratings, in violation of the Consumer Telemarketing and Prevention of Fraud and Abuse Act, the Telemarketing Sales Rule, the Consumer Finance Act 2010 and the on fair trade practices.

The lawsuit, which the CFPB filed jointly with the state of Georgia, alleges the company targeted financially vulnerable customers through telemarketing, collecting millions of dollars in advances, claiming it provided ” validation of the debt” that would eliminate the debt. The complaint further alleges that consumer credit scores were not tracked and that consumers often ended up with increased debt and impaired credit scores.

The order prohibits the company and its owners from telemarketing any consumer financial product or service, demands a total civil penalty of $150,001, and imposes a judgment in damages of at least $30 million, to be stayed upon payment civil penalty.

The defendants neither admit nor deny the allegations.

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