![]() The CFPB’s complaint alleges that Rosen and Credit Repair Cloud are providing substantial assistance to credit-repair companies that use telemarketing to reach consumers and charge unlawful advance fees under the TSR. Such companies that use telemarketing are covered by the TSR, and may not request or receive fees from a consumer until the company has provided that consumer with a credit report that shows the promised results and that was issued more than six months after such results were achieved. A credit-repair business provides consumers with goods or services that purport represented to remove derogatory information from credit reports or otherwise improve a person's credit history, credit record, or credit rating. Since 2013, Credit Repair Cloud has sold software and other tools to help others start and operate credit-repair businesses. The CFPB will not tolerate companies facilitating and profiting from other companies’ violations of federal consumer protection laws.”Ĭredit Repair Cloud is a California-based corporation founded by Rosen. ![]() They facilitated and encouraged credit-repair businesses to charge illegal advance fees, causing broader consumer harm in the marketplace. “They are actively assisting credit-repair businesses in violating federal consumer protection laws. “Credit Repair Cloud and Rosen have been breaking the law,” said Acting CFPB Director David Uejio. The CFPB’s lawsuit seeks relief for harmed consumers from the defendants, disgorgement of their unjust gains, an injunction to stop their illegal conduct, and civil penalties. The CFPB alleges that Credit Repair Cloud and CEO Daniel Rosen have violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act of 2010 (CFPA) by providing substantial assistance or support to credit-repair businesses that use telemarketing and charge unlawful advance fees to consumers. – The Consumer Financial Protection Bureau (CFPB) today filed a lawsuit in federal district court accusing a California-based software company and its owner of providing assistance to illegal credit-repair businesses. ![]()
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