CFPB Charges Software Provider With Assisting In Unlawful Fee Collection

The CFPB charged a credit-repair software and solutions company and its CEO with assisting credit-repair businesses in their collection of advance fees from consumers, in violation of the Telemarketing Sales Rule ("TSR").

In a Complaint filed in the U.S. District Court for the Central District of California, the CFPB alleged that the company and its CEO encouraged credit report companies to (i) telemarket their services and (ii) charge advance fees. Specifically, the company provided telemarketing scripts and marketing materials, training on credit repair, advice on fee collection, and software that facilitated the collection of advance fees. The CFPB further alleged that the company and its CEO, by reviewing clients' revenue through the back-end of the software, knew or consciously avoided knowing that clients charged consumers fees before delivering a consumer report that demonstrated the promised results.