On June 29, the CFPB and the Georgia Attorney General’s Office settled with a debt-relief and credit-repair company and its owners for allegedly deceiving consumers into hiring the company to lower or eliminate credit-card debts and improve consumers’ credit scores. The complaint alleges that the plaintiffs’ use of telemarketing and direct mail violated the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Telemarketing Sales Rule, the Consumer Financial Protection Act, and Georgia’s Fair Business Practices Act by, among other things, falsely claiming that:
The proposed order would:
Putting It Into Practice: This enforcement action serves as a reminder for participants in the debt-relief and credit-repair space to monitor their compliance with state and federal telemarketing and other unfair and deceptive practices laws to ensure full and appropriate disclosure of relevant information before signing consumers up for services. As a general matter, such companies should carefully consider their operations, policies, and procedures relative to advertising and marketing, including websites, inbound telephone scripts, print, radio, television and Internet, lead generation relationships, and third-party vendor relationships.