Lexington Law Lawsuit: Refund Checks and CFPB Judgment

The Lexington Law lawsuit ended in a $2.7 billion judgment against the credit repair firm, its sister company CreditRepair.com, and their parent, PGX Holdings, for charging illegal upfront fees and using deceptive telemarketing to sign up customers. Both companies have shut down. Roughly 4.3 million former customers are receiving refund checks totaling $1.8 billion, sent by the Consumer Financial Protection Bureau starting in December 2024.

What the CFPB Accused Lexington Law Of

The CFPB filed suit on May 2, 2019, in the U.S. District Court for the District of Utah against PGX Holdings; its subsidiaries Progrexion Marketing, Progrexion Teleservices, CreditRepair.com, and eFolks; and John C. Heath, Attorney at Law, PLLC, the firm that did business as Lexington Law.{¹}

The core violation was of the Telemarketing Sales Rule. Under federal law, credit repair companies that use telemarketing cannot charge fees until they have actually produced results and provided the customer with a credit report confirming those results, obtained at least six months after the work was done. Lexington Law and CreditRepair.com instead charged enrollment fees of $9.99 to $14.99 and monthly fees of $79.95 to $129.95 right away, before any results.{²}

The Bureau also alleged the companies used a network of marketing affiliates that lured consumers with false promises of things like low-interest mortgages and rent-to-own housing, then funneled those leads into the credit repair services.{²}

On March 10, 2023, Judge Bruce S. Jenkins granted the CFPB partial summary judgment on the advance-fee count, finding the defendants had clearly violated the rule. The court noted that the volume of credit challenges sent on a customer’s behalf was set by the price the customer paid, not by any individualized strategy, and that fees were billed to credit cards monthly with no invoice and no effort to observe the six-month waiting period.{³}

The $2.7 Billion Judgment and Shutdown

After the summary judgment ruling, PGX Holdings filed for Chapter 11 bankruptcy, shut down most operations, and laid off roughly 900 employees.{⁴} The parties then negotiated a stipulated final judgment, which the court entered on August 30, 2023. Its terms:

Consumer redress of $2,660,926,481 against all defendants collectively.{}¹
Civil penalties of $45,817,452 against the Progrexion entities and $18,408,726 against Lexington Law.{}¹
A 10-year ban on all defendants from telemarketing credit repair services.{}¹
A requirement to tell remaining customers about the lawsuit and their right to cancel.{}¹

Because the companies were insolvent, the full judgment could not be collected from them. The CFPB drew on its Civil Penalty Fund, financed by civil penalties collected across all of the Bureau’s enforcement actions, to pay refunds directly to consumers.{⁵}

Who Qualifies for a Refund

Two groups of former customers are eligible:

Anyone who paid Lexington Law or CreditRepair.com for credit repair services between March 8, 2016, and August 30, 2023, after being contacted through telemarketing.{}⁶
Anyone who paid between July 21, 2011, and August 30, 2023, after being transferred to the companies by marketing affiliates the CFPB identified as engaged in deceptive practices.{}⁶

You did not need to file a claim. The CFPB identified eligible customers from company records and JND Legal Administration mailed checks automatically between December 5, 2024, and January 6, 2025.{⁷}

How Much the Checks Are Worth

Each check is a pro-rata share of the fees the customer paid, so amounts differ from person to person. If the $1.8 billion were split evenly among 4.3 million recipients, the average would be about $419.{⁸} An individual check may not cover the full amount of fees a customer was charged.{⁹}

If Your Check Was Lost, Expired, or Never Arrived

The original checks expired on April 6, 2025.{¹⁰} You can still request a reissue if your check was lost, damaged, expired, or needs a name or address correction. A batch of reissued checks was mailed between September 9 and September 12, 2025, and reissue requests are processed in scheduled runs roughly every two months.{¹¹}{⁹}

If money remains after the initial distribution, additional checks may go to consumers who cashed their first payment. As of mid-2025, no second general round has been confirmed.{¹¹}

Contact JND Legal Administration with questions at www.cfpb-lexlaw.org, by phone at 855-680-8991, or by email at info@cfpb-lexlaw.org.{⁶}

Where Lexington Law and CreditRepair.com Stand Now

Both companies are fully shut down. After the 2023 bankruptcy liquidation, neither relaunched or accepted new clients, and no staff remain to manage existing credit disputes. The CFPB enforcement matter is still classified as ongoing, which reflects the continuing administration of refunds rather than any unresolved legal dispute.{⁶}

1
Consumer Financial Protection Bureau. PGX Holdings, Inc.
2
CNBC. Consumer Watchdog Sues Two Credit Repair Firms Over Fees, Practices
3
CDIA Online. Fed Dist Court Finds Progrexion Violated TSR
4
Vital Law. CFPB Progrexion $2.7B Settlement
5
Consumer Financial Protection Bureau. CFPB Announces Return of $1.8 Billion in Illegal Junk Fees
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Consumer Financial Protection Bureau. Payments to Harmed Consumers – Lexington Law
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ClassAction.org. $1.8B Payout Headed to Lexington Law, CreditRepair.com Customers
8
CBS News. CFPB Credit Repair Lexington Law $1.8 Billion Refund Check
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Consumer Financial Protection Bureau. CreditRepair.com and Lexington Law Refund Checks – What You Need to Know
10
AARP. Credit Repair Refund Checks
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JND Legal Administration. FAQ