CFPB to Distribute $1.8 Billion in Largest-Ever Consumer Refund

Over 4.3 million consumers will receive payments after credit repair firms were found guilty of illegal practices and deceptive advertising.

The Consumer Financial Protection Bureau (CFPB) is disbursing $1.8 billion to 4.3 million consumers harmed by illegal fees and deceptive practices by credit repair companies.
The settlement involves firms like Lexington Law and CreditRepair.com, which were found to have violated federal laws by charging upfront fees through telemarketing and using bait-and-switch tactics.
Following the court ruling, the companies filed for bankruptcy and shut down 80% of their operations, including telemarketing services.
Refunds, calculated based on fees paid by consumers, will be distributed between December 5, 2024, and January 6, 2025, with no action required by recipients.
This marks the largest-ever payout from the CFPB's victim relief fund, which is financed by penalties from companies violating consumer protection laws, not taxpayer dollars.