Progrexion Marketing, Inc.; PGX Holdings, Inc.; Progrexion Teleservices, Inc.; eFolks, LLC; CreditRepair.com, Inc.; John C. Heath, Attorney at Law, PLLC, d/b/a/ Lexington Law

On May 2, 2019, the Bureau filed suit against PGX Holdings, Inc. and its subsidiaries, Progrexion Marketing, Inc., Progrexion Teleservices, Inc., CreditRepair.com, Inc., and eFolks, LLC (collectively, Progrexion) and against John C. Heath, Attorney at Law PC (Lexington Law), which does business as Lexington Law. Progrexion and Lexington Law offer and provide credit repair services through the brands Lexington Law and CreditRepair.com, which are two of the largest credit repair companies in the country. The Telemarketing Sales Rule (TSR) requires that fees for telemarketed credit repair services may only be sought and received after the credit repair company provides the consumer with documentation reflecting that the promised results were achieved more than six months after such results were achieved. As alleged in the amended complaint filed on August 17, 2022, Progrexion and Lexington Law violated the TSR by requesting and receiving prohibited upfront fees for their credit repair services. The Bureau also alleged that Progrexion and its subsidiaries violated the TSR and the Consumer Financial Protection Act of 2010 by making deceptive representations in its marketing, or by substantially assisting others in doing so, to entice consumers into purchasing credit repair services. On March 10, 2023, the district court ruled that defendants violated the TSR’s prohibition on upfront fees and granted the Bureau partial summary judgment against the defendants. On August 28, 2023, the Bureau filed a proposed stipulated final judgment and order, which the court entered on August 30, 2023. The order imposes a judgment of $2,660,926,481 for consumer redress against all defendants, a civil money penalty of $45,817,452 against Progrexion, and a civil money penalty of $18,408,726 against Lexington Law. The order also imposes a 10-year ban on defendants’ telemarketing credit repair services and requires them to send notices to remaining customers who were enrolled through telemarketing of the lawsuit and their right to cancel their credit repair services, among other injunctive relief.

Related documents

Complaint

Amended complaint

Stipulated Final Judgment and Order

Press release

Consumer Financial Protection Bureau Files Suit Against Lexington Law, PGX Holdings, and Related Entities

CFPB Reaches Multibillion Dollar Settlement with Credit Repair Conglomerate