The Consumer Financial Protection Bureau (CFPB) has announced a significant refund initiative, distributing $1.8 billion to approximately 4.3 million consumers who were charged illegal advance fees by two major credit repair firms, Lexington Law and CreditRepair.com. This decision follows a 2019 lawsuit where the CFPB accused these companies of violating the Telemarketing Sales Rule by demanding upfront payments before delivering any services. The court ruled in favor of the CFPB, ordering the companies to pay $2.7 billion and banning them from telemarketing credit repair services for a decade. The refunds, averaging $435, will be automatically sent to eligible consumers by January, with no action required on their part. Those who believe they should receive a refund but do not by mid-January can reach out to JND Legal Administration for assistance. The CFPB emphasizes that consumers can also repair their credit independently without incurring high fees.
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