Lexington Law Lawsuit: The CFPB Credit-Repair Case and $1.8B Refunds

What the Court Found

Lexington Law and CreditRepair.com — the country’s largest credit-repair brands, run through a web of related entities including Progrexion — were sued in a case that led, in March 2023, to a court ruling that they violated the advance-fee provision of the federal Telemarketing Sales Rule. That rule bars charging for credit-repair services before delivering results; the court entered a judgment of about $2.7 billion. Regulators also alleged deceptive “bait-and-switch” marketing to sign customers up.

The advance-fee rule exists precisely because credit-repair customers are often financially vulnerable and easy to charge before anything is delivered.

The Bankruptcy and the Refunds

After the ruling, the companies filed for Chapter 11 bankruptcy and shut down much of their business, laying off hundreds of employees. The CFPB then announced it was returning $1.8 billion in illegal junk fees to about 4.3 million consumers who had been charged unlawful upfront fees or drawn in by deceptive ads. Refund checks were mailed over a roughly six-week window from December 2024 into January 2025, with amounts prorated to what each consumer paid.

This is one of the largest consumer-refund distributions in the CFPB’s history.

What Consumers Should Know

If you paid Lexington Law or CreditRepair.com, you may have received a refund automatically — the CFPB used known customer records, so beware anyone charging a fee to “get your refund.” More broadly, legitimate credit repair is something you can do yourself for free by disputing errors with the bureaus; no one can lawfully charge you upfront to remove accurate negative items.