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Lexington Law and CreditRepair.com

5/2/19 – The Consumer Financial Protection Bureau (Bureau) filed a complaint for deceptive and abusive telemarketing acts or practices against PGX Holdings Inc. and subsidiaries Progrexion Marketing Inc., Progrexion Teleservices Inc., eFolks LLC, and CreditRepair.com Inc.; and against John C. Heath, Attorney at Law PLLC, which does business as Lexington Law.

Deceptive marketing for credit repair services

credit repairThe lawsuit, filed in U.S. district court in Utah, alleges the defendants violated the Telemarketing Sales Rule (TSR) by requesting and receiving payment of prohibited upfront fees for their credit repair services. Under the rule, companies can only charge fees for telemarketed credit repair services after providing consumers with documentation reflecting that the promised results have been achieved. That documentation cannot be provided to consumers until more than six months after the results were achieved. The Bureau also alleges that Progrexion and its subsidiaries violated the TSR and the Consumer Financial Protection Act by making deceptive representations in its marketing, or by substantially assisting others in doing so.

Lexington Law and CreditRepair.com – falsely advertised that it “guarantee[d] ANYONE a 0-3.5% Down Home Loan no matter how bad their Credit is when we start”

credit repairTo generate credit repair sales, Lexington and other defendants rely on a network of marketing affiliates who advertise a variety of products and services, often related to consumer credit products. As alleged below, Progrexion’s marketing affiliates have used deceptive, bait advertising to generate referrals to Lexington Law’s credit repair service. For example, one of Progrexion’s most productive marketing affiliates falsely advertised that it “guarantee[d] ANYONE a 0-3.5% Down Home Loan no matter how bad their Credit is when we start!” In reality, the affiliate did not provide any loans at all. Interested consumers were told that, to participate in the (non-existent) loan program, they had to sign up with Lexington Law. The Progrexion Defendants paid this marketing affiliate for each credit repair sale that resulted from its efforts, despite knowing that it engaged in deceptive practices.

Heath and Progrexion are headquartered in Salt Lake City, Utah and do business throughout the United States.


A copy of the complaint filed in federal district court in the District of Utah is available at: https://files.consumerfinance.gov/f/documents/cfpb_pgx-holdings_complaint_2019-05.pdf

MUSINGS FROM DIANE:

Desperate people will use their last dollar to hire quacks who are in the business to pad their own pockets.   Why?  Because they are searching for any way to give their families a better life.  At what point do these scum decide to treat others they way they want to be treated?  Probably never.  But, they are first to whine when they are prosecuted for their illegal acts.  It does not matter if that scum is the largest and oldest bank in the United States, or a bully on the play ground.  None of them care about the harm they are causing others.  Please remember – if it sounds too good to be true – IT IS!!!!

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Diane L. Drain

Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.

About Diane Drain:

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