Credit Repair Feesloan repair charges
Following a news statement by GFPB, the firm has'[c]charged illicit advances';'[m]isled consumer about the advantages of its credit repair services';'[m]isrepresented the cost of its services'; and'[f]ailed to disclose limitations on 'money-back guarantee''. Similar requests for definitive judgements against other credit repairers have been made by similar CFPBs, as already mentioned in InfoBytes, for broadly the same reason.
Not only does the suggested arrangement prohibit the respondent from working in the credit repair sector on a permanent basis, it also imposes a $150,000 US civilian fine.
Litigation: CFPB Targets Credit Repair Company for Unlawful Fees, Market - FinTech Fenutures
CFPBB has brought a Federal action against a credit repair firm for a so-called "series of unlawful advances " and false claims about the costs and efficacy of the firm's service. CFPB's action against Van Nuys, California, Prime Marketing Holdings LLC seeks to stop the company's alleged illicit activities and obtain rebates to customers who, among other things, have been paying the unlawful fees.
"Today we are taking a stand against Prime Market Holdings because we are attracting consumer with false allegations about their capacity to repair credit records and then charge illicit fees," CFPB director Richard Cordray said in a statement. What's more, we're using the Prime Market Holdings system to make a lot of money on the market. The CFPB complaints that Prime has breached the ban in the Dodd-Frank Act on banning fraudulent actions and practice in the commercialisation and promotion of its products, and has lured customers with "misleading, unfounded" allegations that Prime can effectively eliminate all adverse information from its credit records and significantly enhance creditworthiness.
According to the complainant, the business would then bill a number of unlawful advances to the consumer for its service. It is also said that the organisation infringed the Telemarketing Sales Rule by collecting illicit advances and making misleading claims.