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Are You Eligible for a Credit Repair Refund Check?

$1.8 billion in payments being mailed to 4.3 million victims of massive scheme


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Millions of Americans caught up in a massive credit repair scheme dating as far back as 2011 will soon receive refund checks in the mail.

The Consumer Financial Protection Bureau (CFPB) is overseeing distribution of the refund checks after scoring a legal victory over some of the largest credit repair companies in the U.S., including Lexington Law and CreditRepair.com. The companies were found for years to have charged illegal advance fees or subjected consumers to allegedly deceptive bait-and-switch advertising in violation of federal telemarketing laws.

“Lexington Law and CreditRepair.com exploited vulnerable consumers who were trying to rebuild their credit, charging them illegal junk fees for results they hadn’t delivered,” CFPB director Rohit Chopra said in the agency’s Dec. 5 announcement of the refund checks.

In all, the CFPB is paying out $1.8 billion in refund checks to 4.3 million victims. It’s the biggest-ever distribution from the bureau’s Civil Penalty Fund, which provides money to people who’ve been harmed by companies that break federal consumer financial protection laws. The affected credit repair companies have filed for bankruptcy protection, according to the CFPB.

The refund checks will come as welcome relief, especially to eligible older adults struggling with debt. According to the Federal Reserve’s latest data, debt more than quadrupled from 1992 to 2022 in U.S. households headed by people aged 65 to 74 (from $10,150 to $45,000 per household, on average), and for those 75 and up it increased sevenfold (from just under $5,000 to $36,000).

Who is eligible for a refund check?

Any qualifying consumers harmed by CreditRepair.com, Lexington Law and their parent companies between July 21, 2011, and August 30, 2023. Victims have been identified through records turned over by the credit repair companies. You do not need to take any action at this time to receive a refund check.

If you believe you are eligible for a refund check but don’t receive one by mid-January, you can contact JND Legal Administration, the firm contracted to mail out the payments, at www.cfpb-lexlaw.org or call 1-855-680-8991.  

How much will victims receive?

It depends, but typical refund checks could add up to hundreds of dollars apiece. The exact payments are calculated based on the share of the eligible fees that the victims paid to the credit repair companies.

When should I cash my refund check?

Right away. JND Legal Administration will mail payments to all recipients by Jan. 5, 2025. The refund checks will expire on April 6, 2025. Another reason to cash your check pronto: If there are any remaining funds after the initial distribution is complete, additional checks may be sent to consumers who cashed their first check, according to the CFPB.

You can cash your check at any bank where you have a checking account. If you don’t have a checking account, you can ask a teller at any Wells Fargo branch to cash the check for no fee.

What happens if a refund check is issued to someone who died?

A check made out to a deceased individual can be reissued to the beneficiary of the estate or the estate itself, but the executor of the estate must submit a request to info@cfpb-lexlaw.org and provide proof of identity, a death certificate for the deceased and documentation proving that the person is the sole beneficiary of the victim’s estate. Executors can also submit a request by mail to Lexington Law Matter c/o JND Legal Administration P.O. Box 91015 Seattle, WA 98111.

How can I protect myself from credit repair schemes and scams?

This isn’t the first credit repair scheme — far from it.

Although there are legitimate credit report companies, the industry has a history of fraudulent business practices. For example, the Federal Trade Commission lodged a complaint in 2022 against a Texas-based credit repair company that allegedly charged consumers illegal $1,500 advance fees for services.

The industry is also a breeding ground for scammers, with bogus companies often targeting older adults who are trying to recover from financial setbacks.

If you’re struggling with debt, consider contacting a reputable credit counseling organization instead of going to a credit repair firm. A credit counselor can help you devise a plan to pay off your debts and help you create a budget that you can stick to going forward. You can find one through the National Foundation for Credit Counseling’s agency finder tool or the Department of Justice's list of approved credit counseling agencies.

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