On September 20, 2021, Consumer Financial Protection Bureau(“CFPB”) filed a lawsuit against a software company and its sole owner asserting that the company held itself out as a software provider for credit-repair businesses. Credit Repair Cloud (“CRC”) targets new credit-repair businesses by providing them with all-in-one packages, which included the ability to run credit reports, track individuals, use of templated materials (including marketing materials), third-party plug-ins, and training materials for running a credit-repair business. The CRC website makes it clear that they want its users to help consumers repair their credit. CRC’s owner, Daniel Rosen, is well-versed in the industry having authored a book on credit-repair and offering master classes in the field.
CRC users are generally bound by the Telemarketing Sales Rule if they engage in consumer outreach. However, they have been utilizing CRC’s services to violate the Telemarketing Sales Rule (“TSR”) by charging an initial fee at the time of enrollment as well as a recurring monthly fee. CRC has been accused of encouraging violations of the TSR through its various templates, social media, and a response in its FAQs that suggest that charging an upfront fee for credit repair is “how successful credit repair companies get paid.”
The CFPB is seeking injunctive relief against CRC and its owner, additional relief the court deems proper, monetary relief (refund all monies paid, restitution, disgorgement or compensation for unjust enrichment, and payment of damages), civil monetary penalties, costs of bringing forth the action, and any other monetary relief the court deems proper.
You can read CFPB’s filing here: