On May 22, 2020, the Consumer Financial Protection Bureau (CFPB) and Massachusetts Attorney General’s Office (Mass AG) announced that they had filed a complaint against a credit repair company and the owner of the company in the U.S. District Court for the District of Massachusetts, alleging that they had engaged in deceptive acts or practices under the Consumer Financial Protection Act (CFPA) and the Massachusetts unfair and deceptive acts and practices (UDAP) statute, as well as abusive telemarketing acts and practices under the Telemarketing Sales Rule (TSR). The CFPB and Mass AG alleged that the company deceptively misrepresented to consumers through its website, online advertising, and in its customer agreements, that it would be able to substantially increase consumers’ credit scores and remove negative entries on consumers’ credit reports when, in fact, the company was often unable to do so. The company is also alleged to have requested and collected payment for its credit-repair services prior to achieving the promised results and before providing consumers with a demonstration of those results via a consumer report generated six months after the results were achieved.
The complaint seeks consumer restitution, an injunction, civil money penalties, and enforcement costs against both the company and its owner.
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