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Writer's pictureJoeziel Vazquez

How Lexington Law Scammed Millions of Consumers and Got Busted by the CFPB

Updated: Oct 26

A Credlocity News Investigation Into America's Largest Credit Repair Fraud


The Consumer Financial Protection Bureau (CFPB) has delivered a historic $2.7 billion judgment against Lexington Law and its affiliates, exposing what federal investigators call the largest credit repair fraud in American history. This landmark case reveals how one of the nation's most prominent credit repair companies systematically deceived hundreds of thousands of vulnerable consumers seeking to rebuild their financial lives.


CFPB v. LexingtonLaw

Lexington Law, one of the most infamous credit repair companies in the country, is frequently linked with the notorious Lexington Law class action lawsuit. This law firm, along with a network of related entities, including CreditRepair.com, PGX Holdings, Progrexion Marketing and Progrexion itself, as well as the John C. Heath, Attorney-at-Law PC, is involved in questionable business practices. The Consumer Financial Protection Bureau (CFPB) identifies these companies as examples within the perilous landscape of CFPB “credit repair” laws. Accusations of engaging in illegal telemarketing practices and collecting advance fees from consumers for credit repair services, a clear violation of credit repair laws, have tainted their operations. Regrettably, services often associated with Lexington Law, were frequently undelivered. Instances of the Lexington Law lawsuit have further tarnished the reputation of Progrexion and its affiliates. Therefore, Lexington Law and Progrexion are currently seen as symbols of controversy within credit repair laws.



Credlocity Animated Poster of CFOB against  LexingtonLaw
Ding Ding Ding CFPB beats LexingtonLaw

The Elaborate Scheme

Court records from the U.S. District Court for the District of Utah (Case No. 2:19-cv-00298-BSJ) expose how Lexington Law, operating through a network including CreditRepair.com, PGX Holdings, Progrexion Marketing, and John C. Heath, Attorney-at-Law PC, orchestrated a sophisticated deception campaign.

The CFPB's investigation uncovered a web of fake real estate and rent-to-own listings designed to lure desperate consumers. When potential clients inquired about these non-existent properties, they were told their credit scores were too low – but Lexington Law could help, for a price.

The Numbers Tell the Story

The scale of the operation was staggering:

  • Over 700,000 consumers affected

  • Monthly fees ranging from $89.95 to $129.95

  • "Initial work fees" of $99.95 to $199.90

  • Processing fees of $19.95 to $29.95

  • Hundreds of millions collected in illegal advance fees

Breaking the Law

The March 2023 ruling exposed multiple violations:

  1. Telemarketing Sales Rule Violations:

  2. Collecting payment before services were completed

  3. Failing to make required disclosures

  4. Misrepresenting their ability to remove negative items

  5. Credit Repair Organizations Act Violations:

  6. Demanding advance payments

  7. Making misleading statements about removing bankruptcies, judgments, and liens

  8. Failing to provide required contracts

The Collapse: A Credit Empire Crumbles

In August 2023, the mighty Lexington Law empire came crashing down. After years of collecting millions from desperate consumers, the credit repair giant that once seemed untouchable filed for Chapter 11 bankruptcy protection, sending shockwaves through the financial industry.

The fall was spectacular. Within days of the court's devastating $2.7 billion judgment, the company's gleaming offices – once bustling with hundreds of telemarketers pushing credit repair services – fell silent. Employees arrived to find locked doors, while thousands of clients were left in limbo, their accounts frozen, their futures uncertain.

"The collapse was inevitable," stated CFPB Director Rohit Chopra. "A business built on deception cannot stand forever."

The Aftermath of Empire

The numbers paint a grim picture of destruction:

  • Hundreds of employees suddenly jobless

  • Thousands of client accounts abandoned mid-process

  • Millions in consumer fees lost to the void

  • Decades of operations vanished overnight

  • Multiple state investigations launched

  • Class action lawsuits mounting

The bankruptcy filing revealed the true extent of the devastation. The company that once boasted of helping millions improve their credit scores had itself become a cautionary tale of financial ruin. Their own credit, it seemed, was beyond repair.

But for consumers caught in the wreckage, the nightmare wasn't over. Many found themselves still being charged monthly fees even as the company collapsed. Others discovered their credit disputes had been left unfinished, their files abandoned, their financial futures hanging in the balance.

The fall of Lexington Law marked more than just the end of a company – it signaled the death of an era of unchecked credit repair fraud. From its ashes emerged a new industry standard, one built on transparency, ethics, and genuine consumer protection.

The message was clear: the days of deceptive credit repair practices were over. The question now wasn't whether other companies would fall – but who would rise to take their place in this new era of accountability.

Consumer Protection: What You Need to Know

The CFPB emphasizes several critical points for consumers seeking credit repair services:

Warning Signs of Credit Repair Scams:

  • Requests for upfront payment

  • Promises to remove accurate negative information

  • Guarantees about specific results

  • Pressure to act quickly

  • Missing or unclear contracts

Steps to Protect Yourself:

  1. Check credit reports regularly

  2. Dispute inaccuracies directly with credit bureaus

  3. Maintain low credit card balances

  4. Pay bills on time

  5. Open new credit accounts only when necessary

The Rise of Ethical Credit Repair: The Credlocity Difference

In stark contrast to Lexington Law's predatory practices, Credlocity has revolutionized the credit repair industry with a commitment to transparency, ethics, and verified results. While Lexington Law faced a $2.7 billion judgment for deceptive practices, Credlocity builds trust through ethical service and consumer protection.

Transparency vs. Deception

Where Lexington Law hid behind fake real estate listings and deceptive marketing, Credlocity offers:

  • Straightforward, honest communication about services

  • Clear explanation of the dispute process

  • Real-time access to account progress

  • Direct communication with credit experts

  • Detailed documentation of all actions taken

Consumer-First Payment Model

Unlike Lexington Law's illegal advance fees, Credlocity protects consumers with:

  • 30-day free trial to evaluate our services

  • No advance fees or hidden charges

  • 100% money-back guarantee

  • Cancel anytime policy

  • Pay-for-performance model

  • Clear, upfront pricing structure

Legitimate Dispute Process

While Lexington Law made false promises about removing accurate items, Credlocity delivers:

  • Legal, ethical dispute methods

  • Documentation of all challenges

  • Regular progress updates

  • Educational resources about the process

  • Realistic expectations about results

  • Compliance with all federal regulations

Technology and Transparency

Credlocity's modern approach includes:

  • Advanced credit monitoring systems

  • Secure client portal access

  • Real-time dispute tracking

  • Regular progress reports

  • Educational resources library

  • Mobile accessibility

Education and Empowerment

Unlike Lexington Law's focus on quick fixes, Credlocity provides:

  • Comprehensive credit education

  • Personal financial guidance

  • Long-term credit maintenance strategies

  • Budget planning tools

  • Regular credit score analysis

  • Ongoing support and resources

Compliance and Ethics

While Lexington Law violated federal laws, Credlocity maintains:

  • Full compliance with CROA regulations

  • Regular audits of practices

  • Transparent service agreements

  • Clear cancellation policies

  • Written documentation of all services

  • Regular staff training on compliance

The Results Speak for Themselves

Unlike Lexington Law's undelivered promises, Credlocity offers:

  • Documented success stories

  • Verifiable results

  • Regular progress metrics

  • Realistic timeframes

  • Honest assessment of potential outcomes

  • Continuous support throughout the process

By choosing Credlocity, consumers gain a trusted partner in their credit repair journey, backed by ethical practices, transparent processes, and a genuine commitment to financial success. Our approach proves that effective credit repair doesn't require deceptive practices or illegal fees – just honest, dedicated service focused on real results.

Moving Forward

"The defendants operated a massive scheme that harvested millions of dollars in illegal fees from consumers through deceptive marketing and illegal practices," declared CFPB Director Rohit Chopra. This case serves as a watershed moment in consumer protection.

Remember: improving your credit score requires time, effort, and discipline. There are no quick fixes or magic solutions. Choose transparency over promises, and never pay upfront fees for credit repair services.

For consumers affected by the Lexington Law scandal, the CFPB recommends:

  1. File complaints at consumerfinance.gov/complaint

  2. Submit documentation of payments

  3. Report unauthorized charges

  4. Contact state attorney general offices

Experience the difference ethical credit repair can make with Credlocity's risk-free trial. Begin your journey to better credit with our secure online platform https://www.credlocity.com/pricing.


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Report Credit Repair FraudState Attorneys GeneralMany states also have laws regulating credit repair companies. If you have a problem with a credit repair company, report it to your local consumer affairs office or to your state Attorney General (AG).Federal Trade CommissionYou also can file a complaint with the Federal Trade Commission. Although the FTC can't resolve individual credit disputes, it can take action against a company if there's a pattern of possible law violations. File your complaint online at ftc.gov/complaint or call 1-877-FTC-HELP.Did we treat you unfairly? Did we break the law? Contact the Pennsylvania Attorney Generals Office or the Philadelphia District Attorneys Office.​Credlocity will always provide honest, fair, and legal services TRUST that.

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Credlocity Business Group LLC is the parent company of Credlocity formerly known as Ficostar Credit Services and is in no way affiliated with FICO © 2020 Fair Isaac Corporation. FICO is a company that offers a credit scoring model called the FICO® Score. FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers' FICO scores along with other details on borrowers' credit reports to assess credit risk and determine whether to extend credit.

*VERY IMPORTANT DISCLOSURE*

We are a credit repair company. You have the right to dispute anything on your credit report yourself. This right is outlined in The federal Fair Credit Reporting Act (FCRA) which promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies.

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