Daniel A. Rosen, Inc., d/b/a Credit Repair Cloud, and Daniel Rosen
On September 20, 2021, the Bureau filed a lawsuit against Credit Repair Cloud — a Los Angeles, California, company that since at least 2013 has provided an “all-in-one solution” for people to start their own credit repair businesses — and its owner and CEO, Daniel Rosen. On January 7, 2022, the Bureau filed an amended complaint. The Bureau alleged that Credit Repair Cloud and Daniel Rosen violated the Telemarketing Sales Rule by providing substantial assistance to credit repair businesses that violated the Telemarketing Sales Rule’s advance-fee prohibition. Specifically, the Bureau alleged that Mr. Rosen and Credit Repair Cloud encouraged the credit repair businesses that use their services — including Credit Repair Cloud’s trainings, materials, and software — to telemarket and charge unlawful advance fees. The Bureau further alleged that Mr. Rosen and Credit Repair Cloud knew or consciously avoided knowing that these credit repair businesses were telemarketing their services and charging consumers unlawful advance fees. The Bureau also alleged that by violating the Telemarketing Sales Rule, Credit Repair Cloud and Daniel Rosen violated the Consumer Financial Protection Act of 2010. The defendants filed a motion to dismiss the amended complaint on January 28, 2022, which the court denied on April 5, 2022. On August 12, 2024, the court entered a Stipulated Final Judgment and Order that requires Daniel Rosen to pay $2 million in civil money penalties and Credit Repair Cloud to pay $1 million in civil money penalties. The order also, among other requirements, prohibits the defendants from violating the Telemarketing Sales Rule’s advance-fee prohibition or assisting credit repair businesses that do so. It also requires the defendants to implement a comprehensive compliance program to determine whether the credit repair businesses that use the defendants’ services are telemarketing and charging illegal advance fees. And it requires the defendants to remove from Credit Repair Cloud’s software, websites, training and marketing materials, blog posts, books, other publications, and templates any reference to soliciting potential customers for credit repair services by telephone or videoconferencing and any language or software feature that recommends that Credit Repair Cloud’s customers charge consumers monthly fees for credit repair services.
Related documents
Stipulated Final Judgment and Order (This version has been modified from the version that was entered by the court in order to optimize the reading experience for individuals with disabilities. No text has been changed.)
Press release
CFPB Sues Software Company That Helps Credit-Repair Businesses Charge Illegal Fees