The United States District Court for the Northern District of Georgia recently seized a final judgment and order stipulated between CFPB and a debt relief and credit repair company and its owners, for soliciting customers with false promises that the company would eliminate credit card debt and improve credit scores, in violation of the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Telemarketing Sales Rule, the Consumer Financial Act of 2010, and the Fair Business Practices Act.
The lawsuit, which the CFPB filed jointly with the State of Georgia, alleges that the company targeted financially vulnerable customers through telemarketing, collecting millions of dollars in advances, claiming that it provided services of ” debt validation âthat would eliminate the debt. The complaint further alleges that consumer credit scores were not followed and that consumers often ended up with increased debt and altered credit scores.
The order prohibits the company and its owners from telemarketing any consumer financial product or service, demands a total civil fine of $ 150,001, and imposes a reparations judgment of at least $ 30 million, which will be suspended at payment of the civil fine.
The defendants neither admit nor deny the allegations.