On August 30, 2017, the Consumer Financial Protection Bureau (CFPB) and Prime Marketing Holdings L.L.C. filed their proposed stipulated final judgment and order in United States District Court, the Central District of California to resolve a lawsuit the CFPB originally filed in September of 2016.
In the proposed final judgment, it is alleged that Prime Marketing Holdings L.L.C. illegally charged advance fees and misled consumers as to the cost of credit repair fees. It is alleged that in its approximately two and a half years of operation, the company charged over 50,000 consumers more than $20 Million for credit repair services.
The CFPB took particular exception to allegations around the company misleading customers in the benefits of the credit repair services and misrepresentation of the overall cost of the services provided.
The proposed final judgment stipulates that the company will permanently be banned from operating in the credit repair business and is to pay a fine of $150,000.