The Consumer Financial Protection Bureau filed a lawsuit in federal district court against the credit repair company Prime Marketing Holdings, LLC, which allegedly charged consumers a series of illegal advance fees as well as misrepresented the cost and effectiveness of its services.
According to the CFPB complaint, Prime Marketing Holdings lured consumers by claiming it could remove negative information from credit reports and boost scores significantly. The company attracted customers through its website and sales calls, at times targeting consumers who had recently sought to obtain a mortgage, loan, refinancing or other extension of credit. The company would then charge consumers a variety of illegal advance fees for its services, the bureau said.
The bureau alleges that the company violated the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act’s prohibition on deceptive acts and practices in the marketing and promotion of its services. The company also allegedly violated the Telemarketing Sales Rule by charging illegal advance fees and making deceptive statements.
“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,” said CFPB Director Richard Cordray. “We are also alerting consumers to watch out for problematic credit repair practices.”
Prime Marketing Holdings is a credit repair company that is incorporated in Delaware with an office in Van Nuys, Calif. Prime Marketing Holdings has operated under various names including Park View Credit, National Credit Advisors, and Credit Experts. Since 2014, Prime Marketing Holdings has marketed, offered and provided credit repair services to consumers across the country.
The CFPB also released a consumer advisory about potentially misleading credit repair companies in conjunction with the lawsuit.