CFPB’s Lawsuits: Could You, a Customer Or Seller Of Credit Repair, Be Next?

Since 2019, the CFPB has filed several lawsuits against credit repair companies that do not observe the Telemarketing Sales Rules (“TSRs”). In short, the TSRs prohibit a credit repair company from collecting fees from a consumer until 6 months after the credit repair company has performed the promised work. That means that only after 6 months after a credit repair company gets everything off of your credit report, can they start to bill you. The FTC is serious about this.

There is another provision of the TSRs that prohibits anyone from providing “substantial assistance” to a credit repair company that does not comply with the TSRs. Could this apply to a consumer who pays for credit repair sooner than he should? Possibly. Could this apply to someone who sells credit repair services for a multi level marketing company? Definitely yes!

Credit repair lawyers explain CFPB's Lawsuits in Atlanta, GA.

The CFPB Is Going After Third Parties Who Provide Substantial Assistance To Credit Repair Companies That Do Not Comply With The TSRs

In September of 2021, the CFPB filed a lawsuit against Credit Repair Cloud and its owner, Daniel Rosen. They publish software that provides people with the opportunity to get into the credit repair field. Credit Repair Cloud calls itself “Business in a Box.” The CFPB has accused this company and its owner of providing substantial assistance to one or more credit repair companies that do not comply with the TSRs.

The scary thing about having the CFPB come after you is that they have left a long wake of people barred from the credit repair industry for life, along with a trail of many multi million dollar sanctions. This agency frequently hands out these fines and empties people’s bank accounts in collecting them.

Third Party Sellers Of Credit Repair Services In Multilevel Marketing Companies Are Completely Exposed To The TSRs

The TSRs apply to people who sell credit repair as part of a multi-level marketing plan. Many times, these folks are enticed by the idea of a passive income that allows them to collect money from the sales made by others that they have recruited into the system. What they don’t realize is that they, too, are in the same boat as Credit Repair Cloud and could be the next target of the CFPB. If the multi level marketing company is a high profile one, its not a matter of if, but really only a matter of when the CFPB comes knocking to ask questions.

Can Consumers Become The Target Of a CFPB Investigation Or Lawsuit If They Do Business With a Credit Repair Company That Does Not Comply With The TSRs?

In theory, yes. Some might argue that the CFPB is there to protect consumers and thus it would go against its mandate to pursue a consumer. However, it’s conceivable that by supporting a credit repair company that does not comply with the TSRs, that the consumer is providing “substantial assistance” and thus could be a target for such an investigation and/or lawsuit. The real question is do you really want to find out? If you are looking for credit repair, there are better options for you than an MLM company or a credit repair company that can get you into trouble.

Check Out Our 3 For Free Program At Credit Repair Lawyers Of America.

Credit Repair Lawyers of America has a 3 for Free program. We will draft up to 3 dispute letters for you in exchange for your credit report. There is absolutely no charge to the consumer for this as we make our money by suing the credit bureaus and the lenders who screw up your credit report. Our litigation program has no out of pocket charge to you. Call us today at (404) 591-6680 or visit us at Credit Repair Lawyers Of America. You can also email us for more information at Carl@crlam.com.

 

 

Professional Credit Repair Lawyers Near You In Georgia

 

 

3355 Lenox Road #750
AtlantaGA30326
Phone: 404-591-6680
Toll Free: 855-956-2089
Website: https://creditrepairlawyersam.com/