The two biggest credit repair brands, a $2.7 billion judgment
The CFPB sued PGX Holdings, Progrexion Marketing and the law firm behind Lexington Law and CreditRepair.com, the two largest brands in the industry, with combined 2022 revenues of $388 million, for collecting illegal advance fees from roughly 4 million telemarketed customers. A federal court ruled against the companies in March 2023, and the parties reached a settlement announced in August 2023 imposing a $2.7 billion redress judgment and a ten-year telemarketing ban, after the companies filed for Chapter 11 bankruptcy.
- Year
- 2023
- Where
- United States
- Outcome
- Settled
- Reported loss
- $2.7 billion
- Victims
- 4,000,000
- Schemes
- Credit repair scams
- Last reviewed
- 2026-09-09
The facts, as recorded
- The CFPB brought the action against PGX Holdings, Progrexion Marketing and John C. Heath, Attorney-at-Law PC, the law firm operating as Lexington Law, the two entities behind the Lexington Law and CreditRepair.com brands.
- The companies reported combined annual revenues of $388 million in 2022 and had telemarketed to roughly 4 million customers.
- In March 2023 a federal district court ruled that the defendants violated the Telemarketing Sales Rule's Credit Repair Organizations Act provisions by collecting fees before completing promised services.
- The companies filed for Chapter 11 bankruptcy protection during the litigation.
- The settlement, announced 28 August 2023, imposed a $2.7 billion judgment for consumer redress, a $45.8 million civil penalty against Progrexion Marketing, and an $18.4 million civil penalty against the Heath law firm.
- The settlement includes a ten-year ban on telemarketing credit repair services.
- Then-CFPB Director Rohit Chopra: "These credit repair giants used fake real estate and rent-to-own opportunities to illegally bait people and pad their pockets with billions in fees."
Why this case matters
Every other case on this page involves a smaller operation most people have never heard of. This one involves Lexington Law and CreditRepair.com, the two names most likely to come up first in a search for credit repair help, which is exactly why the CFPB’s own framing matters: size and brand recognition were not evidence of legitimacy.
The advance fee, at industry scale
The core violation is the same one described throughout this scheme: charging for credit repair before the work is done, which the Credit Repair Organizations Act and the Telemarketing Sales Rule both prohibit. What makes this case different is scale: 4 million telemarketed customers and $388 million in a single year’s revenue, run through what the CFPB calls two of the largest brands in the industry.
Fake real estate as the hook
Chopra’s quote names a detail easy to miss in the headline numbers: the companies allegedly used “fake real estate and rent-to-own opportunities” to bait people in, before the credit repair billing began. The promised service was not the only false promise in the pitch.
The caveat
This is a settled civil enforcement action following an adverse court ruling; the companies did not contest the March 2023 finding through further appeal before settling, and the case concluded in bankruptcy proceedings rather than a criminal court.
Sources
- CFPB Reaches Multibillion Dollar Settlement with Credit Repair Conglomerate. Consumer Financial Protection Bureau. Accessed 2026-09-09. Supports: The company and brand names, the $388 million combined revenue, the 4 million telemarketed customers, the March 2023 ruling, the bankruptcy filing, the $2.7 billion judgment, the civil penalties, the ten-year ban, and the Chopra quote.