More than 4 million Americans who paid illegal fees to credit repair firms, including Lexington Law and CreditRepair.com, will soon receive $1.8 billion in refund checks, according to the Consumer Financial Protection Bureau (CFPB). The funds, drawn from civil penalties, represent the largest victim relief payout in CFPB history.
The refunds follow an August 2023 court ruling that found the firms violated laws prohibiting advance fees for credit repair services. After filing for bankruptcy, the companies ceased most operations. Eligible consumers can expect payments in December and January, with amounts based on fees paid.
The CFPB emphasized its commitment to aiding defrauded consumers, despite industry opposition and political calls for the agency’s dismantling.
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