August 16, 2024

Illegal Advance Fees a Dark Cloud Over Credit Repair Company

Cozen O'Connor

+ Follow Contact

Facebook

Send

Embed

Cozen O'Connor

The CFPB has entered into a proposed stipulated final judgment and order with Daniel A. Rosen Inc., d/b/a Credit Repair Cloud and its owner (collectively, “CRC”) to resolve allegations that CRC violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act by providing tools and services to credit repair businesses that enabled them to perform unlawful telemarketing and charge illegal fees to consumers.
According to the CFPB, CRC sells software and other tools to credit repair businesses, including a system that substantially assisted its client businesses in unlawfully charging advance fees to consumers—such as monthly, sign-up, first-work, document-processing, or consultation fees—before providing any promised credit repair results.
Under the terms of the order, CRC must pay a combined civil penalty of $3 million, cease violating the TSR’s advance-fee prohibition or providing assistance to credit repair businesses that do so, implement a compliance program to assess whether businesses using its services are telemarketing and charging illegal advance fees, and remove any reference to using telemarketing or monthly fees for credit repair from its materials, among other relief.

Send Print Report

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.