CFPB Sues Software Company for Allegedly Supporting Illegal Credit-Repair Fees

CFPB sign

CFPB signOn September 20, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in the U.S. District Court of the Central District of California against a California-based software company and its owner.  The complaint alleges that the software company violated the Telemarking Sales Rule (TSR) and Consumer Financial Protection Act (CFPA) by actively assisting and encouraging credit-repair businesses to violate federal consumer protection laws.  Specifically, the company is alleged to have provided assistance and enc​​ouraged credit-repair businesses to charge unlawful advance fees to their consumers through the use of telemarketing scripts, marketing materials, training materials on credit repair, and advice on how and when to collect fees.​​​

The CFPB​ seeks injunctive relief, restitution, disgorgement, civil money penalties, and costs for bringing the action.