Home Info Newsroom CFPB Sues Software Company That Helps Credit-Repair Businesses Charge Illegal Fees

CFPB Sues Software Company That Helps Credit-Repair Businesses Charge Illegal Fees

Authored By: Lewis Wood on 9/20/2021

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today filed a lawsuit in federal district court accusing a California-based software company and its owner of providing assistance to illegal credit-repair businesses. The CFPB alleges that Credit Repair Cloud and CEO Daniel Rosen have violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act of 2010 (CFPA) by providing substantial assistance or support to credit-repair businesses that use telemarketing and charge unlawful advance fees to consumers. The CFPB’s lawsuit seeks relief for harmed consumers from the defendants, disgorgement of their unjust gains, an injunction to stop their illegal conduct, and civil penalties.

“Credit Repair Cloud and Rosen have been breaking the law,” said Acting CFPB Director David Uejio. “They are actively assisting credit-repair businesses in violating federal consumer protection laws. They facilitated and encouraged credit-repair businesses to charge illegal advance fees, causing broader consumer harm in the marketplace. The CFPB will not tolerate companies facilitating and profiting from other companies’ violations of federal consumer protection laws.”

The complaint is not a final finding or ruling that the defendants have violated the law.

Read the complaint.

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Tags: CFPB, regulation


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