WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau has announced that it took action against Prime Marketing Holdings LLC a credit repair company, suing for allegations the company charged consumers illegal advance fees.
According to the CFPB, the defendant violated the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act, as well as the Telemarketing Sales Rule. Specific allegations include that Prime Marketing Holdings charged illegal advance fees, misled consumers about the cost and benefits of its services and failed to disclose limits on its “money-back” guarantee.
“We are taking action against Prime Marketing Holdings for luring consumers with misleading claims about its ability to repair credit files and then charging illegal fees,” CFPB Director Richard Cordray said.
“We are also alerting consumers to watch out for problematic credit repair practices. All consumers have a right to a free annual credit report and to dispute inaccurate information. This is a key step to building and maintaining good credit.”
The CFPB seeks a ban on Prime Marketing Holding’s alleged harmful conduct. It also seeks relief for consumers, including refunds of feeds paid to the defendant.