In May, the CFPB sued Lexington Law and a number of companies operating under PGX Holdings, Inc. for violating the Telemarketing Sales Rules by engaging in “bait advertising” and “requesting or receiving payment upfront for certain telemarketed credit repair services.” A copy of the motion can be accessed by clicking here. Lexington Law can do things I was not able to accomplish by myself. Several plaintiffs have filed class action lawsuits against Lexington Law Firm, alleging that the firm sent them unsolicited text messages and phone calls advertising their credit repair and monitoring services. In addition to the high dollar value of the relief requested by the Bureau, the allegations themselves would require a big change in the way Lexington Law receives payment from consumers—specifically, following a waiting period and demonstrating that the company did what it promised. "Why the agency chose to wait until now to reveal its interpretation of the rule is a mystery to us.". This company got quick responses and positive results. Lexington Law® Firm - Fix Credit Score - LexingtonLaw.com This Lexington Law Firm that claims to fix your credit report is a total waste of your money. Credit repair organizations (CROs) have been flooding debt collectors with questionable mass disputes for a while now. Five to ten business days after you complete your detailed examination of the negative items they will determine the best strategy for your account.
Unfortunately, there is no way to cancel Lexington Law online. Copyright document.write(new Date().getFullYear()) insideARM LLC. By the way, Lexington Law and CreditRepair.com are both owned by the same company – Progrexion Marketing. In the lawsuit, they allege that Progrexion doing business as (DBA) Lexington Law engaged or was complicit in deceptive and abusive marketing practices. Allegedly, the company uses a network of affiliates to generate its “massive quantities of leads.” The affiliates use telemarketing campaigns to market certain financial products (rent-to-own housing, mortgage, auto loans, or personal loans) and, when they get a consumer on the phone, they live-transfer the consumer to Lexington Law. insideARM, http://www.insidearm.com/news/00045007-deep-dive-cfpb-suit-against-lexington-law/. collection-laws-and-regulations There is also a question of whether Lexington Law’s business model can survive if the court sides with the Bureau on this matter. Lexington Law is a law firm that specializes in repairing your bad credit. Get peer reviews and client ratings averaging 4.5 of 5.0. ; however, what the Bureau targeted could in fact help to alleviate that issue. The complaint provides a glimpse into how Lexington Law generates its large customer volume. I wrote to them asking them for a hard copy of my account activity and cancelled my … A 2019 lawsuit alleged that the … Heath PLLC is a law firm based in North Salt Lake, Utah that does business under the trade names Lexington Law Firm and Lexington Law. More than 100,000 consumers signed up for Lexington Law's credit-repair services through that unnamed firm's efforts, the complaint says. According to the 48-page complaint, Lexington Law relied on a marketing affiliate network that “used deceptive, bait advertising to generate referrals to Lexington Law’s credit repair service.” The Bureau focused on Lexington Law’s referral fees, stating that the organizations failed to observe the mandatory waiting period required by federal law. John C. Heath, Attorney at Law, PLLC (which does business as Lexington Law Firm) is on the receiving end of a proposed class action lawsuit that alleges violations of the Telephone Consumer Protection Act (TCPA). Recent recommendations regarding this business are as follows: "I wouldn’t recommend", "I recommend … Some may be disappointed that the CFPB did not go further and target Lexington Law’s mass credit disputes; however, what the Bureau targeted could in fact help to alleviate that issue. On Thursday, the CFPB announced that it filed a lawsuit against Lexington Law for violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act. The defendant, which does business as Lexington Law Firm, supposedly autodials thousands of consumers in an attempt to sell credit repair and monitoring services. Our expertise has allowed us to win cases which have resulted in large industry-wide settlements, comprehensive industry reform efforts and the removal of toxic chemicals such as lead, arsenic and cadmium from millions of different consumer products. With this complaint, the tides have turned. WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today filed a complaint 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. Plaintiff: The CBE Group Inc: Defendant: Lexington Law Firm: Case Number: 3:2017cv02594: Filed: September 22, 2017: Court: US District Court for the Northern District of Texas "In a system that already is weighted heavily against the consumer in favor of opportunistic and opaque processes, why would the [bureau] choose to prevent consumers from getting professional help? How a FICO credit score affects your life, Your mutual fund may have a political bias, Here's a look at what motherhood costs in lost income, Tread carefully when lending money to family and friends, U.S. Consumer Financial Protection Bureau. Under federal law, companies can charge fees for credit-repair services only once the promised results have been achieved and proven with a credit report six months later. The lawsuit claims the defendants either knew about the misrepresentations or had "reckless indifference" to them or an awareness of the high probability of their existence. For example, plaintiff Marcelo Pena allegedly received text messages from Lexington every day for three days. Lexington Law is currently the target of legal action from the Consumer Financial Protection Bureau (CFPB). "During that time, we have made frequent requests to meet and discuss any concerns the bureau has with respect to billing or other practices. The lawyers at Lexington Law Group have over a century of combined experience litigating complex public interest cases. Davidson County officials responded to the announcement of a potential lawsuit from the City of Lexington on Thursday by stating they stand by their position that the Confederate statue in uptown Lexington is protected by state law. LEXINGTON LAW Ripoff Reports, Complaints, Reviews, Scams, Lawsuits and Frauds Reported Your Search: Lexington Law. According to the complaint, Lexington Law had knowledge that such misrepresentations were occurring and allowed the practices to continue. Get this delivered to your inbox, and more info about our products and services. The Hotswap Partners also pitch Lexington Law’s and CreditRepair.com’s credit repair services, typically after telling the consumer that he or she has been denied a particular credit product or service, offering the consumer unfavorable terms on a loan, or telling the consumer that he or she will be eligible for the product or service, or for better terms on the product, if they first enroll in the credit repair service. You can begin your services with Lexington Law by receiving a free consultation of your credit report and score. For quite some time, collection agencies and creditors have raised flags about practices of certain CROs that seemed to be harmful to consumers. The lawsuit says that at the time of enrollment with Lexington Law or CreditRepair.com, consumers are charged a fee for a copy of their credit report and told that the fee — … The lawsuit also alleges that deceptive methods were used to get customers to sign up for credit-repair services at both firms. The CFPB this week filed a lawsuit against CreditRepair.com and Lexington Law, which the bureau claims are two of the country’s largest credit repair … One CRO—Lexington Law and its related entities (collectively, Lexington Law)—have caught the attention of the Consumer Financial Protection Bureau (CFPB or Bureau). In a complaint filed Thursday in U.S. District Court in Utah, the Consumer Financial Protection Bureau accused CreditRepair.com and Lexington Law, their owners and various affiliated entities, of violating telemarking laws by collecting fees from consumers before they were legally permitted to do so. It also claims that the upfront and ongoing fees charged to consumers were illegal because telemarketing law requires them to collect no fees until the promised results are achieved. When we first signed for the Credit repair. In its complaint, the bureau said it is seeking to stop the upfront fees, end deceptive representations used through marketing the services and obtain relief for harmed consumers. According to the lawsuit, all profits from both companies go to that “marketing” company which is the parent company. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia. Several plaintiffs have filed class action lawsuits against Lexington Law Firm, alleging that the firm sent them unsolicited text messages and phone calls advertising their credit repair and monitoring services. Some of the scripts that Lexington Law provided its hotswap affiliates include a statement that Lexington Law’s services “can just make the whole process of getting this loan funded easier,” and that “[Y]ou just need to get a few things taken care of with your credit in order to get qualified for a loan…that is exactly what Lexington specializes in.”. cfpb, policiesprocedures This is called a “hotswap.”. insideARM is a publication of The iA Institute. new-rules 6 May 2019 at 07:00 a.m. The Consumer Financial Protection Bureau has filed a lawsuit against Lexington Law and a number of companies operating under PGX Holdings, Inc. for violating the Telemarketing Sales Rules by engaging in “bait advertising” and “requesting or receiving payment upfront for certain telemarketed credit repair services,” according to a copy of the complaint, which was filed in District Court for the District … A Settlement has been reached in a class action lawsuit about whether John C. Heath, Attorney At Law, PLLC d/b/a Lexington Law Firm ("Lexington") made autodialed calls or sent autodialed text messages to mobile telephone numbers without prior express written consent of the recipients in violation of the Telephone Consumer Protection Act, 47 U.S.C. Don’t forget to take a look at our full list of Class Action Lawsuit Settlements! The nation's consumer watchdog agency is suing the owners of two large credit-repair companies, accusing them of taking unlawful fees from consumers and engaging in deceptive and abusive sales tactics. For example, the CFPB said, from at least 2012 through 2017, a partner identified as "HSP1" offered consumers low-interest mortgages, access to rent-to-own housing or other products and services, none of which it actually could do. The complaint seeks an injunction against Lexington Law and its affiliates, the rescission or reformation of consumer contracts, refunds to consumers of monies paid, disgorgement for unjust enrichment, and payment of damages. As summarized in the complaint, “fees can only be collected after a certain period has elapsed and it has been demonstrated that the promised results have been achieved.”. The 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. A Division of NBCUniversal.

Credit Knocks recommends you find one that maybe is a better fit for you, such as Credit Saint, our highest customer rated credit repair company reviewed. Data is a real-time snapshot *Data is delayed at least 15 minutes. Filing a motion to dismiss is standard practice in litigation which forces the Plaintiff to define the charges against Lexington Law further and sometimes results in some dropped … The overall rating of the company is 1.9 and consumers are mostly dissatisfied.. The two firms plan to fight the accusations. ET, General Counsel & Regulatory Editor All rights reserved. On Thursday, the CFPB announced that it filed a lawsuit against Lexington Law for violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act. They have helped over 500,000 clients repair their credit since they began in 1991. A spokesman for the defendants says they are "perplexed" by the allegations.

Advertiser Disclaimer - Some links on this page may pay us advertising fees. Case Setup. Consumer Financial Protection Bureau vs. John C Heath, Attorney at Law PLLC d/b/a Lexington Law. According to the lawsuit, here’s what Progrexion was doing: Editor’s Note: In April, a federal court compelled Lexington Law to produce its client communications related to lead generation for its mass credit dispute letters in a lawsuit filed by Ad Astra Recovery Services, Inc. Lexington Law Firm Class Action Settlement Class Eligibility You are a member of the settlement if you received an autodialed call or text message from Lexington on or after July 12, 2013 through the date of the entry of an order of preliminary approval by the court. Lexington Law and CreditRepair.com. creditreporting, 8 Requirements Your Payment Provider Must Have in the ARM Industry, Automation for Transforming the Debt Collection Management Landscape, Succeeding in Collections Today Requires More Agility, eVoke Inbox from RevSpring: A Strategic Email Solution That Truly Delivers, eVoke Pay: Increase Collections Without Increasing your Costs, State of The US Accounts Receivable Management Industry In Q1 2020, insideARM Presents: Vendor Partnerships and the Final Rule, insideARM Presents: iA's Legal Advisory Board's Analysis of the CFPB New Rules, What the Future Holds for the ARM Industry: A Look Into 2021, insideARM Presents: CFPB New Rules Overview Webinar, TouchPoint One: Transforming Compliance & Audit Workflows. Lexington Law was first mentioned on PissedConsumer on Sep 12, 2008 and since then this brand received 491 reviews.. Lexington Law ranks 94 of 3253 in Lawyers and Legal Services category. Login to your credit repair dashboard to access your latest scores and reports and keep up to date on any disputes or negative items. 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. January 28th, 2019, California. Once a client has enrolled in credit report repair services, paralegals at Lexington Law obtain copies of the client's credit reports and discuss the client's credit history, financial status, and other personal details. All Rights Reserved. Published on: Sign up for free newsletters and get more CNBC delivered to your inbox. Signage is displayed inside the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., on Monday, March 4, 2019. Heath PLLC has been associated with Progrexion, or its predecessors, and has licensed Case 2:19-cv-00298-DBP Document 2 Filed 05/02/19 Page 7 of 48 7 the trademark “Lexington Law” since at least 2004. Some may be disappointed that the CFPB did not go further and. Got a confidential news tip? It’s too early to tell what effect this lawsuit will have on the ARM industry, but one thing is for certain: all eyes are on this one. Until now, regulators had not taken action. The lawsuit says that at the time of enrollment with Lexington Law or CreditRepair.com, consumers are charged a fee for a copy of their credit report and told that the fee — which has ranged from $9.99 to $14.99 since July 2011 — is required to begin the credit-repair process. It seemed that the credit reporting agencies don’t take the consumer seriously, at least that’s how I felt when I tried on my own. Without its massive (and, according to the Bureau’s complaint, deceptive) lead generation program, Lexington’s source for these mass credit report disputes would not exist at its current scale. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Ongoing monthly fees range from $79.95 to $129.95. The complaint alleges that Lexington Law and CreditRepair.com relied on a shared network of marketing affiliates that used deceptive tactics to get consumers to enroll in their services. Without its massive (and, according to the Bureau’s complaint, deceptive) lead generation program, Lexington’s source for these mass credit report disputes would not exist at its current scale. LAW OFFICES OF TODD M. FRIEDMAN PC. ", Kamerath also said the lawsuit is premised on "an unannounced, incorrect and unworkable change in interpretation of an arcane billing provision that is outdated, previously unenforced and contradicted by the Credit Repair Organizations Act.". "Despite this knowledge, the ... defendants continued to sign up consumers through the affiliate or participated in the affiliate's deceptive conduct," the complaint states. One CRO—Lexington Law and its related entities (collectively, Lexington Law)—have caught the attention of the Consumer Financial Protection Bureau (CFPB or Bureau). Worst mistake I have made. All Related Articles, Key Documents, & Tools on the, Katie Grzechnik Neill – General Counsel & Regulatory Editor According to the lawsuit, Lexington Law Firm text messages violated the Telephone Consumer Protection Act, or TCPA. Find the right Lexington Civil Litigation lawyer from 23 local law firms. Next Article: California State Legislature Advances Amendments to California ... debt-collection We want to hear from you. collection-strategy The suit alleges that Lexington Law devised the scheme “to bombard debt collectors with false credit dispute letters with the intention of deceiving [debt] collectors, like Plainitff, and frustrating their efforts to collect legitimate debts.” So if you are eligible, file a claim by the deadline to receive your potential award! © 2020 CNBC LLC. regulations 2019 Lawsuit Against Lexington Law The Bureau for Consumer Financial Protection (CFPB) filed a complaint against Progrexion the parent company of Lexington Law in May of 2019. The complaint also says that Lexington Law and CreditRepair.com relied on a shared network of marketing affiliates that used deceptive tactics to get consumers to enroll. One of Lexington Law’s largest lead generation affiliates would tell consumers on the phone that “their credit score was the only thing keeping them from their desired product.” This would follow with a lead-in to Lexington Law’s service to help increase the consumer’s eligibility for a product that did not exist. Lexington Law responded to the CFPB complaint with a motion to dismiss the lawsuit. final-rule collection-technology The suit says the unnamed firm was simply an affiliated call center with the purpose of transferring potential clients to Lexington Law. "We find ourselves a bit perplexed," said Eric Kamerath, a spokesman for the companies. § 227 ("TCPA"). "We have been providing information to the CFPB for over four-and-a-half years," Kamerath said. The Lexington Law Firm drained my account by debiting my card for amounts of 59.00-$229,00 costing me over $1000,00 + overdraft fees of approximately $300.00. More from Personal Finance:Your mutual fund may have a political biasHere's a look at what motherhood costs in lost incomeTread carefully when lending money to family and friends. – insideARM, With this complaint, the tides have turned. Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. fdcpa The para legals that were assigned to our case were neither helpful or well informed about legal matters. The issue with Lexington Law’s lead generation program is that its hotswap affiliates gained their leads through misrepresentation, such as offering “illusory products or services” that the company did not actually offer and advertising “fake real estate ads, fake rent-to-own housing opportunities, fake relationships with lenders, false credit guarantees, and false and unsubstantiated statements about past consumer outcomes.”. compliance_1 , nor do they necessarily reflect the view of Justia helpful or well about... Informed about legal matters which is the parent company purpose of transferring potential to... The purpose of transferring potential clients to Lexington Law is currently the target of legal Action the. Forget to take a look at our full list of Class Action lawsuit Settlements all profits from companies!, file a claim by the same company – Progrexion Marketing from the federal appellate and courts! That unnamed firm was simply an affiliated call center with the purpose of transferring potential clients to Lexington Law your! The company is 1.9 and consumers are mostly dissatisfied and docket sheets should not be considered findings of fact liability! Over four-and-a-half years, '' said Eric Kamerath, a spokesman for companies., Lexington Law online is the parent company view of Justia Reviews, Scams, Lawsuits and Frauds Reported Search... More CNBC delivered to your inbox, and Market Data and Analysis says the unnamed 's... Are mostly dissatisfied to receive your potential award been providing information to the did! To our case were neither helpful or well informed about legal matters over 500,000 clients repair their credit they., a spokesman for the companies, Scams, Lawsuits and Frauds Reported Search! For example, plaintiff Marcelo Pena allegedly received text messages from Lexington every day for three.. That “marketing” company which is the parent company for a while now up to date on any disputes negative! Your bad credit and Frauds Reported your Search: Lexington Law repairing your bad.... In 1991 companies go to that “marketing” company which is the parent company Filings... Peer Reviews and client ratings averaging 4.5 of 5.0 go further and to take a look at our list! A free consultation of your credit repair organizations ( CROs ) have been flooding collectors! Misrepresentations were occurring and allowed the practices to continue collectors with questionable mass disputes for while... Ongoing monthly fees range from $ 79.95 to $ 129.95 us. `` after... Over 500,000 clients repair their credit since they began in 1991 Action from the federal appellate district. Lexington every day for three days for the companies delivered to your inbox, and more about! Than 100,000 consumers signed up for Lexington Law responded to the complaint provides glimpse. Protection Act, or TCPA of the company is 1.9 and consumers are mostly dissatisfied the practices continue... Financial Protection Bureau ( CFPB ) to consumers occurring and allowed the practices to.... 500,000 clients repair their credit since they began in 1991 your latest scores and Reports and keep up to lexington law lawsuit! They began in 1991 the target of legal Action from the federal appellate and district courts the to... Certain CROs that seemed to be harmful to consumers and creditors have raised about. Collection agencies and creditors have raised flags about practices of certain CROs seemed. Provides a glimpse into how Lexington Law responded to the CFPB did not go further.! '' by the way, Lexington Law had knowledge that such misrepresentations were occurring and allowed the to. $ 79.95 to $ 129.95 what Progrexion was doing: Lexington Law had knowledge such. According to the CFPB complaint with a motion to dismiss the lawsuit, all profits from both companies go that! You complete your detailed examination of the company is 1.9 and consumers are mostly dissatisfied generates large. Data and Analysis range from $ 79.95 to $ 129.95 reflect the view of Justia CNBC delivered to inbox! Creditors have raised flags about practices of certain CROs that seemed to be harmful to consumers from the Financial. Litigation records from the Consumer Financial Protection Bureau ( CFPB ) you complete detailed.