CFPB Sues Prime Marketing Holdings for Misleading Marketing and Illegal Fees

CFPB Sues Prime Marketing Holdings for Misleading Marketing and Illegal Fees

September 28, 2016         Written By Lynn Oldshue

The Consumer Financial Protection Bureau has filed a lawsuit against Prime Marketing Holdings for misleading consumers about its credit repair services and charging illegal advance fees before the services were completed. The CFPB is requesting the company cease its harmful and illegal behaviors, and is seeking compensation for consumers affected by the practices.

There are several different allegations in the lawsuit. Prime Marketing Holdings allegedly collected fees in advance for credit repair services before they had been completed. Federal laws prevent telemarketing companies from collecting these fees until certain services have been delivered. Some consumers were charged “hundreds of dollars” in setup fees, in addition to monthly fees as high as $89.99.

The suit claims the company misled consumers about the benefits they would gain from the credit repair services. The company suggested they would be able to remove negative elements of a consumer’s credit report or increase the credit score without having an actual method for doing that.

Consumers were also mislead about the continued cost of their credit repair services, such as the monthly fee. Consumers were charged monthly fees automatically, even though many were told they would only be charged if they opted to continue service after 60 days. Prime Marketing Holdings did offer a money back guarantee, but they failed to disclose that the guarantee only applied to people who had used their services for at least six months.

More information about the lawsuit can be found in the official complaint document.



The information contained within this article was accurate as of September 28, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


lynn-oldshue

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Cash Back Card
Top Features : No Annual Fee, Bonus Offer, Cash Back