By Legal Radar 
Millions of Americans turn to credit repair services hoping to clean up errors or outdated negatives on their reports. When those services involve large monthly fees and aggressive marketing, questions about legality and fairness quickly arise. The Lexington Law Firm lawsuit, centered on a major Consumer Financial Protection Bureau enforcement action, has delivered one of the largest consumer redress efforts in recent history. This guide breaks down the CFPB case, the related TCPA settlement, refund eligibility and process, the firm’s current operational status, and practical steps for current or former clients. The goal is clear information so you can protect your rights and make better decisions about credit repair services.
Background on Lexington Law and Credit Repair Services
Lexington Law operated for years as a high-profile credit repair provider under the legal entity John C. Heath, Attorney at Law, PLLC. It marketed attorney-backed disputes of inaccurate, incomplete, or unverifiable items on credit reports from the three major credit reporting agencies. Clients typically paid monthly fees for ongoing services that included challenge letters, progress tracking through a client portal, and related support.
Credit repair services sit at the intersection of consumer rights under the Fair Credit Reporting Act and restrictions on how companies can sell and bill for those services. Federal rules, especially the Telemarketing Sales Rule, set strict limits on advance fees when services are sold by phone. The Credit Repair Organizations Act also imposes disclosure and contract requirements. Lexington Law and related brands grew into some of the largest players in the industry, serving millions of consumers through a network that included marketing affiliates and sister company CreditRepair.com.
Many clients signed up after seeing online ads or receiving calls that promised improved credit. The billing structure often involved recurring monthly charges that began relatively quickly after enrollment. Over time, regulators examined whether those practices complied with the advance-fee ban and whether marketing was deceptive.
The CFPB Enforcement Action Against Lexington Law
In May 2019, the Consumer Financial Protection Bureau filed a lawsuit in the U.S. District Court for the District of Utah against Progrexion Marketing, PGX Holdings, related entities, CreditRepair.com, and John C. Heath, Attorney at Law, PLLC doing business as Lexington Law. The complaint alleged violations of the Consumer Financial Protection Act and the Telemarketing Sales Rule.
The core claim focused on illegal advance fees. Under the Telemarketing Sales Rule, companies that telemarket credit repair services generally cannot charge fees until they have achieved the promised results and those results have been maintained for six months, with documentation provided to the consumer. The CFPB argued that Lexington Law and affiliates billed customers far earlier, collecting billions in fees between roughly 2016 and 2023.
A second major allegation involved deceptive, bait-and-switch advertising. Marketing affiliates allegedly used fake real estate, rent-to-own, or lending opportunities to generate leads. Consumers who responded were then “hot-swapped” or live-transferred to Lexington Law or CreditRepair.com sales representatives. The CFPB contended this practice misled consumers about the true nature of the offer.
In March 2023, the district court ruled that the companies had violated the Telemarketing Sales Rule’s advance-fee provision. The court found the companies had collected approximately $2.66 billion in illegal advance fees from more than four million consumers. In August 2023, the parties reached a stipulated judgment and order. The judgment totaled about $2.7 billion in consumer redress and civil penalties. The order also imposed a 10-year ban on telemarketing credit repair services and required notifications to existing customers about cancellation rights.
Following the court ruling and settlement, the parent companies filed for Chapter 11 bankruptcy protection. Operations were sharply reduced, with large-scale layoffs and the closing of most telemarketing activities. Civil penalty funds and other sources later supported consumer payments through the CFPB’s victims relief fund.
Official details appear on the CFPB website at consumerfinance.gov and the dedicated administration site cfpb-lexlaw.org.
Refund Checks and Class Action Payout Eligibility
In December 2024, the CFPB began distributing approximately $1.8 billion to about 4.3 million eligible consumers. This represents the largest single distribution from the agency’s civil penalty fund. Payments cover consumers who paid Lexington Law or CreditRepair.com for credit repair services purchased between March 8, 2016, and August 30, 2023, after telemarketing, or who paid between July 21, 2011, and August 30, 2023, after being live-transferred by marketing affiliates engaged in the alleged deceptive practices.
Eligible individuals were identified from company records. Checks were mailed automatically between early December 2024 and early January 2025. No claim form was required for the initial distribution. If you did not receive a check or need a reissue (for example, because of a change of address, a lost check, or an expired check), you must request one through the official administrator.
JND Legal Administration handles the process. Visit cfpb-lexlaw.org, use the Contact Us form, call 1-855-680-8991 (or the TDD line), or write to the provided post office box. Reissue requests are processed in order and mailed roughly in the fourth week of each month. Checks remain valid for 90 days from the issue date. After that window, another reissue request is needed.
Watch for scams. Legitimate payments come only from the official administrator. No one should ask you for bank details, Social Security numbers, payment to “expedite” a check, or gift cards. Verify any communication by contacting the administrator or the CFPB directly at 855-411-2372 or consumerfinance.gov.
Payout amounts vary based on the fees each consumer paid. The process is designed to return money connected to the illegal advance fees and related practices without requiring further legal action from individual consumers.
The Earlier TCPA Class Action Settlement
Separate from the CFPB case, Lexington Law faced a class action under the Telecommunications Consumer Protection Act. The case, Pena v. Lexington Law Firm (Southern District of Florida), alleged unsolicited calls and text messages based on information from third-party lead generators.
In 2020, the parties reached a settlement valued at more than $11.45 million. Class members who received calls or texts on or after July 12, 2013, from certain lead sources could claim a small cash payment (approximately $6.15 after fees and costs). The settlement received final approval in April 2020, and the claims period closed years ago. Service awards and attorney fees were also paid from the fund. This matter is closed and does not overlap with the CFPB refund program.
The TCPA case illustrates broader risks around telemarketing practices that credit repair companies have faced. It is distinct from the later advance-fee and deceptive-marketing claims pursued by the CFPB.
Is Lexington Law Firm Still Operational?
The original legal entity that was the primary defendant in the CFPB action largely wound down after the bankruptcy and judgment. However, the Lexington Law brand continues under a successor entity. Public records and the firm’s own materials indicate that Oquirrh Mountain Law Group, P.C., acquired the tradename and now operates as Lexington Law Firm. Cody Johnson serves as directing attorney.
The website lexingtonlaw.com remains active and offers free credit assessments and paid monthly plans (recently cited around $139.95 per month for the primary service level). Enrollment processes have shifted away from traditional phone telemarketing in light of the 10-year ban that applies to the prior entities. Clients can access an online client portal and mobile app to track disputes, view scores, and communicate with the team. Live chat and phone support for existing clients are available.
The current operation is a different legal entity from the one subject to the $2.7 billion judgment. Consumers should understand this distinction. Past performance and regulatory history of the predecessor do not automatically transfer, yet the brand continuity means many former clients may still interact with the same name. Always review current contracts, cancellation policies, and disclosures carefully. Credit repair results are never guaranteed, and you can dispute inaccurate items yourself at no cost through AnnualCreditReport.com and the credit bureaus.
Understanding Legal Fees and Billing Structure Concerns
A central issue in the CFPB action was the timing of billing. The Telemarketing Sales Rule’s advance-fee provision exists precisely because consumers often pay for credit repair before any documented results appear. When companies bill early and rely on telemarketing, the risk of consumers paying for unproven outcomes rises.
In the Lexington Law case, the court agreed with the CFPB that fees collected before the required six-month post-result period violated the rule. The settlement and bankruptcy followed. Current clients of the successor firm should examine their agreements for clear descriptions of when charges begin, what services are included, and how cancellation works. Federal law generally requires written contracts for credit repair and gives consumers a short window to cancel without further obligation.
Practical steps if you have billing questions: log into the client portal if you still have access, request itemized statements, and compare charges against the services delivered. If you believe fees were charged improperly under the old regime, the CFPB distribution may already address that. For new concerns with the current provider, document everything and consider contacting the CFPB complaint portal or your state attorney general.
Practical Steps for Current and Former Clients
- Check for a refund check. Search your mail from late 2024 and early 2025. If missing, request a reissue at cfpb-lexlaw.org.
- Review your credit reports. Obtain free weekly reports at AnnualCreditReport.com. Dispute inaccurate items directly with Equifax, Experian, and TransUnion. You do not need a paid service to exercise these rights.
- Access the client portal if you remain enrolled. The current portal is typically reached through access.lexingtonlaw.com or the firm’s main site. Use it to monitor open disputes and cancel if desired.
- Evaluate ongoing services. Ask for a clear written summary of what has been accomplished and what remains. Compare the monthly cost against free or low-cost alternatives such as nonprofit credit counseling.
- Watch for scams related to the settlement. Never share sensitive information with unsolicited callers or websites claiming to help with Lexington Law refunds.
- File complaints if needed. Use the CFPB complaint system at consumerfinance.gov for credit repair or billing issues. State consumer protection agencies can also assist.
These steps help you regain control whether you are seeking a refund, closing an account, or deciding whether to continue with any credit repair provider.
Broader Lessons for Consumers Considering Credit Repair
The Lexington Law Firm lawsuit underscores several realities of the industry. Aggressive marketing and early billing create vulnerability for consumers who are already under financial stress. Regulatory enforcement, while slow, can produce substantial redress when violations are proven. At the same time, the survival of a brand name under new ownership shows that market demand for help with credit reports remains strong.
Consumers have powerful free tools. The Fair Credit Reporting Act gives you the right to accurate reports and a process to dispute errors. Nonprofit credit counseling agencies offer budgeting and debt management help, often at low or no cost. If you choose a paid service, insist on transparent contracts, clear timelines, and realistic expectations. Avoid any provider that guarantees specific score increases or removal of accurate negative information.
The CFPB action also highlights the value of the Telemarketing Sales Rule and ongoing oversight of the credit reporting system. While the large judgment and distribution provide concrete relief to millions, the underlying challenges of credit accuracy and access to fair services continue.
Conclusion
The Lexington Law Firm lawsuit produced a $2.7 billion judgment, a 10-year telemarketing ban on the prior entities, and the distribution of $1.8 billion to roughly 4.3 million consumers harmed by illegal advance fees and related practices. An earlier TCPA settlement resolved separate call and text claims. The brand continues under new ownership, but the regulatory history remains relevant for anyone researching credit repair options. Check for your refund, review your reports yourself, and use official channels only. Informed decisions start with accurate information and a clear understanding of your rights under federal consumer protection law. If you have unresolved billing or service questions, contact the CFPB or a qualified consumer attorney for personalized guidance.
Frequently Asked Questions
What is the status of the Lexington Law Firm lawsuit with the CFPB?
The case resulted in a final judgment and order in 2023. Refund distribution began in December 2024 and reissues continue through the official administrator.
Am I eligible for a class action payout or refund check?
Eligibility covers consumers who paid for services in the specified date ranges after telemarketing or affiliate transfers. The CFPB identified recipients from company records. No new claims process exists for the main distribution.
How do I request a reissue of my Lexington Law refund check?
Go to cfpb-lexlaw.org, complete the Contact Us form, or call 1-855-680-8991. Provide the requested documentation if asked.
Is Lexington Law Firm still operational?
The original defendant entity scaled down after bankruptcy. A successor company operates the Lexington Law brand and website today under different ownership.
How do I log into the Lexington Law client portal?
Current clients typically use the login link on lexingtonlaw.com or access.lexingtonlaw.com. Contact support through the site’s chat if you need password help.
What were the main violations in the CFPB case?
Illegal collection of advance fees for telemarketed credit repair services under the Telemarketing Sales Rule, plus allegations of deceptive bait-and-switch advertising.
Should I continue using credit repair services after this case?
Only after carefully reviewing contracts, costs, and alternatives. Many consumers successfully dispute errors on their own at no charge.
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