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ARTICLE · 29 MAY 2023

CFPB, FTC Continue Crack Down On Debt Relief Schemes

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On May 5, the CFPB announced that it has sent payments totaling more than $22 million to approximately 6,500 individuals who were harmed by a Maryland-based debt-relief and credit-repair company...

United StatesFinance and Banking
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Matt Benz
Matt Benz
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On May 5, the CFPB announced that it has sent payments totaling more than $22 million to approximately 6,500 individuals who were harmed by a Maryland-based debt-relief and credit-repair company that marketed and sold debt-relief and credit-repair services nationwide from 2016 to 2020. In 2021, a federal court entered a stipulated final judgement and order against the company and its executives for allegedly deceiving consumers into hiring the company with false promises to lower or eliminate their credit-card debts and to improve their credit scores in violation of consumer financial protection laws.

On May 1, The FTC announced that a federal court entered stipulated final judgments and orders against three individuals and their affiliated companies who allegedly operated a credit card debt relief scheme in Tennessee. In its original complaint filed in November 2022, the FTC alleged that the individuals and their companies operated as a

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