The Consumer Financial Protection Bureau (CFPB) reached a legal settlement with credit repair brands that include Lexington Law and CreditRepair.com. These are companies that market the possibility of eliminating debts and improving credit scores. The CFPB alleged the companies violated federal telemarketing rules by using bait-and-switch tactics and charging illegal advance fees.

A recent press release issued by the CFPB says $1.8 billion will be distributed to 4.3 million eligible consumers. Those who are eligible for the payments have been identified in the final legal order as a “harmed consumer.” CFPB used company records to identify these consumers. Those eligible will be mailed a letter and a check. The check amount will be based on a pro-rata share of the fees paid to the companies.

Checks will be going out in batches starting December 5,2024 and continuing over a six-week period ending on Jan 6, 2025. The checks will become void on April 6, 2025.

The CFPB contracted JND Legal Administration to manage the payments and answer consumer questions.

More information is available at the CFPB’s webpage CreditRepair.com and Lexington Law refund checks: What you need to know

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