CFPB hires software vendor to assist with illegal fee collection

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United States: CFPB accuses software vendor of helping collect illegal fees

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CFPB accused a credit repair software and solutions company and its CEO to help credit repair companies collect advances from consumers, in violation of the Telemarketing Selling Rule (“TSR”).

In a Complaint filed with the United States District Court for the Central District of California, the CFPB alleged that the company and its CEO encouraged credit reporting companies to (i) telemarket their services and (ii) charge fees. upfront fees. Specifically, the company provided telemarketing scripts and marketing materials, credit repair training, advice on fee collection, and software that facilitated the collection of fee advances. The CFPB further alleged that the company and its CEO, by examining customer revenues through the software back-end, knew or consciously avoided knowing that customers were charging consumers a fee before providing a report on consumers who demonstrated the promised results.

As a result, the CFPB charged the company and its CEO with TSR violations, 16 CFR 310.3 (b) (“Assisting and Facilitating Deceptive Telemarketing Acts or Practices”), and Section 1036 (a) (1) (A) of the Consumer Financial Protection Act.

The CFPB seeks redress in the form of (i) permanent injunctions, (ii) restitution, (iii) restitution, (iv) damages and (v) civil monetary penalties.

Primary sources

  1. CFPB press release: CFPB sues software company that helps credit repair companies charge illegal fees
  2. CFPB Complaint: Daniel A. Rosen, Inc., d / b / a Credit Repair Cloud, and Daniel Rosen

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