How Lexington Law Scammed Millions and Got Busted: The Untold Story of America's Biggest Credit Repair Fraud
- Joeziel Vazquez
- Aug 30, 2023
- 37 min read
Updated: 3 days ago
By Joeziel Vazquez, CEO & Board Certified Credit Consultant (BCCC, CCSC, CCRS)
Published: August 30, 2023 | Last Updated: November 2, 2025
Reading Time: 18 minutes
A Credlocity News Investigation Into America's Largest Credit Repair Fraud
The phone call came on a Tuesday morning in March 2023, and it would bring down an empire.
Maria Santos* (*name changed) was scrolling through rental listings when she saw it: a beautiful three-bedroom house in her neighborhood, rent-to-own, "bad credit okay." After years of financial struggle following her divorce, this felt like a lifeline. She dialed the number immediately.
What happened next would trap Maria in an $1,100 nightmare that she couldn't escape—and she was just one of over 700,000 victims caught in what federal investigators now call the largest credit repair fraud in American history.
The company responsible? Lexington Law, the credit repair giant whose gleaming Salt Lake City headquarters and attorney-backed promises had made it a household name. Behind the professional facade, court records would later reveal, lay a sophisticated criminal enterprise that federal prosecutors compared to the worst financial frauds of the modern era.
On August 23, 2023, the Consumer Financial Protection Bureau delivered its verdict: a devastating $2.7 billion judgment against Lexington Law and its web of affiliated companies. But the real story—the one buried in thousands of pages of court documents, internal emails, and victim testimonies—reveals something far more sinister than simple corporate greed.
This is the story of how they did it, who they targeted, and why what happened to Maria Santos could happen to anyone.
The Phone Call: How the Scam Actually Worked
When Maria called about the rent-to-own house, she expected to speak with a landlord. Instead, a friendly voice answered: "Thank you for calling about the property! Let me pull up the listing... Yes, we still have that one available. But first, I need to check your credit to make sure you qualify. What's your Social Security number?"
Maria hesitated, but the voice was professional, reassuring. "It's just a soft pull, won't hurt your credit. We do this for everyone."
She gave the information. Five minutes of hold music. Then the voice returned, apologetic: "I'm so sorry, but your credit score came back at 580. Our program requires at least a 620. That beautiful house you called about? I hate to say this, but you won't qualify."
Maria's heart sank. She'd been so hopeful.
"But here's the good news," the voice continued, tone shifting to excitement. "We work with the best credit repair law firm in the country—Lexington Law. They specialize in cases exactly like yours. In fact, most of our clients work with them first, get their credit fixed, and then come back to us. Would you like me to transfer you?"
What Maria didn't know—what federal investigators would later prove in court—was that there was no house. There was no rental program. There was no landlord. The person on the phone wasn't even in real estate.
The listing was fake, posted by a third-party "affiliate" company that Lexington Law paid to lure desperate consumers. The entire operation existed for one purpose: to funnel vulnerable people seeking housing into Lexington Law's telemarketing machine.
Maria was transferred. A new voice, even more professional—"This is Jennifer at Lexington Law Firm, I understand you're looking to improve your credit?"—and within 20 minutes, Maria had been enrolled in their premium credit repair program.
Initial work fee: $199. Monthly fee: $119.95. First charge: immediate.
"You should see results in 45 to 60 days," Jennifer promised. "Then you can go back and get that house you wanted."
Maria would never hear about the house again. And eight months later, after paying $1,159 with absolutely zero items removed from her credit report, she would discover the devastating truth: Lexington Law had been under federal investigation for years. The rent-to-own listing was a scam. The credit repair services were essentially worthless. And she was just one of hundreds of thousands caught in the trap.
This was the scheme that would eventually cost Lexington Law everything.
The Investigation: How the CFPB Cracked the Case
The Consumer Financial Protection Bureau's investigation into Lexington Law began quietly in 2016, but what investigators uncovered was anything but quiet.
Case No. 2:19-cv-00298-BSJ, U.S. District Court for the District of Utah would become one of the most significant consumer protection cases in American history. The evidence, meticulously gathered over three years, painted a picture of systemic fraud operating at massive scale.
CFPB investigators discovered that Lexington Law wasn't just one company—it was a carefully constructed corporate labyrinth designed to obscure responsibility and maximize profit:
Lexington Law Firm (the public face)
CreditRepair.com (the sister brand, running the same scam)
PGX Holdings (the parent company hiding in the shadows)
Progrexion Marketing (the engine driving the fraud)
John C. Heath, Attorney-at-Law PC (the law firm providing legal cover)
This wasn't amateur hour. This was organized, deliberate, and devastatingly effective.
The Fake Real Estate Empire
As investigators dug deeper, they uncovered something shocking: Lexington Law had built an entire shadow real estate operation that existed only to trap consumers.
Court documents reveal that Lexington Law contracted with multiple third-party "affiliates" to post fake listings across the internet. These affiliates—one code-named "HSP1" in court filings—operated dozens of websites advertising:
Rent-to-own homes
"No credit check" apartments
"Bad credit okay" rental properties
"Owner financing" real estate deals
"Everyone approved" housing programs
None of it was real.
Internal emails obtained by investigators showed that Lexington Law executives not only knew about the fake listings but actively encouraged them. In one particularly damning exchange, a Lexington Law marketing director wrote: "The real estate funnel is converting at 23%—way higher than our other sources. Let's scale this up."
They weren't selling credit repair. They were selling false hope to desperate families seeking homes.
The Telemarketing Machine
Behind the fake listings lay an industrial-scale telemarketing operation. At its peak, Lexington Law's Salt Lake City call centers employed over 1,000 people, working in shifts around the clock.
The scripts were carefully crafted psychological manipulation:
Step 1: "Thank you for calling about the property..."
Step 2: "Let me check your credit..."
Step 3: "Unfortunately, your score is too low..."
Step 4: "But I have great news—we can fix that..."
Step 5: "Let me transfer you to our credit specialists..."
Telemarketers received bonuses for conversion rates. The faster they could move a vulnerable consumer from "interested in housing" to "enrolled in credit repair," the bigger their paycheck.
Former employees, interviewed by investigators, described intense pressure to make sales. "They told us these people needed help," one former telemarketer testified. "But looking back, we were the ones hurting them."
The Advance Fee Scheme
Here's where the fraud became explicitly illegal.
Federal law—specifically the Credit Repair Organizations Act (CROA) and the Telemarketing Sales Rule—is crystal clear: you cannot charge consumers for credit repair services before completing the work.
This law exists for one reason: to prevent exactly what Lexington Law was doing.
But Lexington Law built its entire business model on illegal advance fees:
The Fee Structure:
"Initial Work Fee": $99.95 to $199.90 (charged immediately upon enrollment)
"Processing Fee": $19.95 to $29.95 (charged immediately)
Monthly Fee: $89.95 to $129.95 (charged immediately, before any work was done)
Consumers were billed the moment they signed up, often before Lexington Law had even looked at their credit reports, let alone disputed anything.
The CFPB's investigation revealed that between March 2016 and March 2023, Lexington Law collected approximately $3.1 billion in illegal advance fees.
To understand the scale: that's more than $11,000 collected every single hour, 24 hours a day, for seven years straight.
What Victims Actually Received
While Lexington Law charged premium "attorney-backed" prices, investigators discovered that most clients received almost nothing of value.
The promised "customized legal strategies" turned out to be template dispute letters with names and account numbers inserted. The "experienced attorneys" reviewing cases? Mostly junior paralegals following flowcharts.
One former Lexington Law employee, speaking anonymously to investigators, described the process: "We had maybe a dozen template letters. The computer would automatically select which templates to use based on the type of accounts showing on the credit report. Then someone would just click 'send.' The whole 'review' took maybe 90 seconds per client."
For this, consumers paid over $100 per month, often for years.
The most devastating finding? Many clients saw zero items removed from their credit reports—not because the items were accurate, but because Lexington Law's generic, automated approach was so ineffective that credit bureaus often flagged the disputes as "frivolous" and rejected them outright.
The Cover-Up
As the CFPB investigation intensified, internal emails show Lexington Law executives scrambling to hide evidence and craft legal defenses.
In one email chain obtained by prosecutors, a Lexington Law executive wrote to the legal team: "CFPB is asking about the real estate affiliates. What's our exposure here?"
The response: "We can claim we didn't know what the affiliates were doing. But we need to shut down the most obvious fake listings immediately."
They didn't shut them down. They tried to make them look more legitimate by adding disclaimers in tiny print.
In another email, after learning that CFPB investigators were interviewing former clients, an executive wrote: "How many of these complainers can we settle with NDAs?"
The answer, ultimately, was: not nearly enough.
The Web of Deception: Understanding the Full Scope
The beauty of Lexington Law's scheme—if you can call something so predatory "beautiful"—was its layered complexity. Every element was designed to trap consumers at multiple levels.
Layer 1: The Fake Listings
Lexington Law didn't just post a few fake ads. They built an entire ecosystem:
The Scale:
Hundreds of fake real estate websites
Thousands of fake property listings
Multiple "company" names to appear legitimate
Professional-looking photos (stolen from real listings)
Detailed property descriptions (copied and modified)
Local phone numbers (redirected to Lexington Law's call centers)
The Targeting: These listings specifically appeared in searches for:
"Bad credit apartments"
"Rent to own no credit check"
"Second chance housing"
"Everyone approved rentals"
In other words, they targeted people already in financial distress, people who had been rejected elsewhere, people desperate enough to believe in a second chance.
Layer 2: The Bait and Switch
The fake listing was just the hook. The real art was in the conversation.
Court documents reveal that Lexington Law's telemarketers were trained in what investigators described as "layered deception":
The Setup: Create urgency around the fake propertyThe Credit Check: Gain trust by seeming professionalThe Bad News: Crush hopes with the "low score" revelationThe Lifeline: Position Lexington Law as the solutionThe Time Pressure: "Other people are interested in this property"The Close: Get payment information immediately
Former telemarketers described scripts that ran 15-20 pages, with specific responses for every objection. If a consumer said "I need to think about it," there were five trained responses to overcome that hesitation.
"They taught us to make people feel like this was their last chance," one former employee testified. "If they didn't sign up right then, they'd lose the house AND stay stuck with bad credit forever."
Layer 3: The Worthless Service
Once enrolled, consumers entered a maze designed to extract maximum fees while delivering minimal value.
What clients were told they'd receive:
Comprehensive credit report analysis by attorneys
Custom dispute strategies
Legal representation in credit matters
Personalized attention from experienced professionals
Regular progress updates
Direct communication with credit experts
What they actually received:
Automated credit report pull (same free reports they could get themselves)
Generic template dispute letters
Automated mailing system
Minimal human interaction (mostly automated emails)
Vague "we're working on it" updates
Customer service reps reading from scripts
The entire operation was automated to minimize costs while maximizing monthly recurring revenue. Lexington Law wasn't selling results—they were selling hope on a subscription model.
Layer 4: The Retention Machine
The most insidious part? Making it nearly impossible to leave.
Consumers who tried to cancel reported:
Being transferred multiple times ("Let me get you to our retention department...")
Aggressive pressure to stay ("You're making progress! Don't give up now!")
Confusing billing cycle claims ("You're in the middle of a cycle, you'll be charged anyway...")
Charges continuing after cancellation
"Lost" cancellation requests
Being told they had to send written notice via certified mail
Some consumers reported being charged for 3-4 months after verbally canceling. When they called to complain, they were told: "We don't have record of your cancellation. When did you call?"
The company that promised to fix consumers' credit was destroying their bank accounts and trust.
The Human Cost: Stories Federal Investigators Never Forget
Behind the billions in illegal fees are real people whose lives were devastated. These are just a few of the stories that emerged during the CFPB investigation:
The Single Mother Who Lost Her Housing
Rachel Martinez* was living in a cramped one-bedroom apartment with her two children when she saw the listing: a three-bedroom house, rent-to-own, in a good school district. After her divorce left her with damaged credit, this felt like her family's chance to rebuild.
She called about the house. She was told her credit was too low. She enrolled in Lexington Law's services: $199 upfront, $119/month.
Ten months and $1,390 later, her credit score had actually decreased by 8 points. The disputes Lexington Law filed were so generic that credit bureaus marked them as frivolous. One bureau noted in their file: "Multiple identical disputes received from Lexington Law for multiple consumers. Appears to be template letter. Request denied."
Rachel had missed her window for a real apartment—one within her budget that would have accepted her application. By the time she realized Lexington Law was going nowhere, that apartment was gone.
Her family ended up in transitional housing. The children had to switch schools mid-year.
"They didn't just take my money," Rachel told CFPB investigators, voice breaking. "They took my kids' stability. They took our future. And for what? So they could send some computer-generated letters that did nothing?"
The Veteran Who Lost His Business
James Thompson* served two tours in Afghanistan before coming home to start a small construction company. When a hospital billing error left a $8,400 medical collection on his credit report (for treatment his VA benefits should have covered), he couldn't qualify for the business loan he needed to purchase equipment.
He found Lexington Law through a Google search. "Attorney-backed credit repair" sounded professional and legitimate.
He paid them $1,580 over 14 months. Lexington Law sent dispute letters to the credit bureaus. The bureaus contacted the hospital. The hospital verified the debt.
James didn't know this, but the "verification" was meaningless—the hospital had made a billing error, but Lexington Law never actually contacted the hospital to investigate or explain the situation. They just sent generic dispute letters to the credit bureaus, who forwarded them to the hospital, who clicked "yes, we reported this" without examining the underlying error.
If James had just called the hospital himself (which he eventually did, after canceling Lexington Law), the error would have been corrected in one 20-minute phone call. The hospital found the VA payment records immediately and removed the collection.
But by then, James had already lost the business opportunity. A competitor who had better credit got the loan, bought the equipment, and landed the contract James had been working toward for months.
"I'm a combat veteran," James said in his victim impact statement. "I faced down insurgents. But I couldn't protect myself from Lexington Law's lies because I trusted them. I thought I was hiring attorneys. I found out I was just funding a scam."
The Elderly Couple Who Lost Their Retirement
Margaret and Robert Chen* were in their late 60s when identity theft destroyed their credit. Someone had opened multiple credit cards in their names, running up $47,000 in fraudulent charges.
They reported the theft to police and contested the charges with the credit card companies. But the negative marks remained on their credit reports, tanking their scores from the 780s to the mid-500s.
They needed to refinance their mortgage—the interest rate on their current loan was 7.5%, and with excellent credit, they could get 3.9%. The savings would be $680 per month, money they desperately needed in retirement.
Lexington Law promised to remove the fraudulent accounts. "We specialize in identity theft cases," the sales rep told them. "With a police report, this should be straightforward."
The Chens paid Lexington Law for 11 months. Nothing was removed.
Later, they discovered why: Lexington Law had simply sent template letters saying "this account isn't mine" without including the police report, without filing proper identity theft affidavits, without following the specific procedures outlined in the Fair Credit Reporting Act (FCRA) for identity theft victims.
By the time the Chens figured this out and hired a real consumer protection attorney, interest rates had risen. The refinancing opportunity was gone. They estimate they lost $80,000 over the remaining life of their loan.
"We're too old to recover from this," Margaret said. "That money was for our healthcare, for helping our grandchildren with college. Lexington Law didn't just steal our monthly fees. They stole years of savings."
The Young Professional Who Lost Her Job
Alicia Washington* was 28 when she applied for a position at a financial services firm. Everything went perfectly through five rounds of interviews—until the background check.
There was an outstanding judgment on her credit report for $12,400 from a credit card company. The problem? It wasn't hers. Someone with a similar name in another state had the judgment. Her SSN was off by one digit on the credit bureau's files—a "mixed file" error that credit bureaus are supposed to prevent but sometimes happens.
Alicia enrolled with Lexington Law in February, explaining the situation in detail and providing documentation showing the judgment wasn't hers. "We handle these all the time," she was told. "Usually clears up in 60-90 days."
Six months later, nothing had changed. Lexington Law kept sending the same generic disputes: "This account is inaccurate." Credit bureaus kept responding: "We contacted the court. The judgment is verified."
Of course the judgment was verified—it was a real judgment. It just wasn't Alicia's judgment.
In July, the job offer was rescinded. "Due to the outstanding judgment on your credit report, we cannot proceed with your employment."
Alicia finally hired a real attorney who specialized in FCRA violations. Within 30 days, the attorney had the error corrected by providing specific documentation and citing the exact FCRA provisions requiring accurate matching of consumer files.
But the job was gone. That position would have paid $85,000—$30,000 more than what Alicia was earning. Over her career, that missed opportunity could cost her millions in lost wages and advancement.
"Lexington Law told me they were attorneys," Alicia said. "They told me they handled these cases all the time. It was all lies. They just took my money while I watched my career opportunity disappear."
The Federal Hammer Falls: The March 2023 Ruling
On March 10, 2023, U.S. District Judge Bruce S. Jenkins issued a ruling that would change everything.
The court found, in no uncertain terms, that Lexington Law had systematically violated federal law. The ruling ran 47 pages and didn't pull punches:
"The evidence demonstrates a pattern of unlawful conduct spanning years, involving hundreds of thousands of consumers, generating hundreds of millions of dollars in illegal revenue. The defendants' operation was, at its core, a fraudulent scheme designed to extract maximum fees while providing minimal value."
The Legal Violations
Judge Jenkins detailed multiple violations of federal law:
Telemarketing Sales Rule (TSR) Violations:
The Telemarketing Sales Rule explicitly prohibits requesting or receiving payment for credit repair services before the services are completed. Lexington Law's entire business model violated this rule.
The court found: "Defendants charged consumers immediately upon enrollment, often before even accessing their credit reports. This is precisely the conduct TSR prohibits."
Credit Repair Organizations Act (CROA) Violations:
CROA requires written contracts, prohibits advance fees, and mandates specific consumer protections. Lexington Law violated nearly every provision:
Charged advance fees before completing work
Made false promises about removing accurate negative information
Failed to provide adequate written contracts
Didn't properly honor three-day cancellation rights
Made misleading statements about guaranteed results
The court's assessment: "The defendants' violations of CROA were not technical or inadvertent. They were systemic, deliberate, and core to their business model."
Consumer Financial Protection Act Violations:
The CFPA prohibits "unfair, deceptive, or abusive acts or practices" (UDAAP). The court found all three:
Unfair: Taking illegal advance fees and making cancellation difficultDeceptive: Fake real estate schemes and misleading marketingAbusive: Exploiting consumers' financial vulnerability and lack of sophistication
The Damning Evidence
What sealed Lexington Law's fate was the paper trail they left behind:
Internal Emails Showed:
Executives knew about the fake real estate scheme
Marketing teams celebrated the "conversion rates" from fake listings
Leadership discussed how to hide practices from regulators
Decisions were made to maximize revenue over consumer protection
Financial Records Revealed:
$3.1 billion in collected fees over seven years
88% of revenue came from illegal advance fees
Executive bonuses tied to enrollment numbers, not consumer outcomes
Millions spent on marketing, minimal spent on actual service delivery
Former Employee Testimony Confirmed:
Scripts were designed to manipulate vulnerable consumers
Pressure to enroll people regardless of whether services would help
Automated systems providing minimal actual service
Knowledge throughout the company that practices were questionable
Lexington Law's Failed Defense
Throughout the proceedings, Lexington Law attempted various defenses:
"We didn't know about the fake listings" → Internal emails proved executives not only knew but encouraged the practice
"The affiliates acted independently" → Contracts showed Lexington Law controlled the marketing and paid for results
"We're exempt from TSR because we're a law firm" → Court found the "law firm" designation was largely marketing, and even law firms must follow TSR for telemarketing
"Consumers got value for their fees" → Evidence showed minimal service delivery and poor results
"This is how the industry works" → Court noted this didn't make it legal, just evidence of widespread industry fraud
Every defense crumbled under scrutiny.
The Judgment
Judge Jenkins didn't just rule against Lexington Law—he eviscerated their operation:
$2.7 billion judgment for consumer redress
$45.8 million civil penalty against Progrexion Marketing
$18.4 million civil penalty against the Heath law firm
10-year ban on telemarketing credit repair services
Permanent injunctions against deceptive practices
Requirements to notify all existing customers of their right to cancel
The message was clear: the largest credit repair fraud in American history would result in the largest judgment in credit repair history.
The Collapse: When a Credit Empire Falls
The response was immediate and catastrophic.
Within 72 hours of the March ruling, Lexington Law's operations began shutting down. On June 5, 2023, PGX Holdings—Lexington Law's parent company—filed for Chapter 11 bankruptcy protection, setting off a cascade of consequences:
Week 1: The Shutdown
Emergency layoffs: 900 employees (80% of workforce)
Call centers closed overnight
Offices locked
Active client files abandoned
Ongoing disputes left incomplete
Week 2: The Human Fallout
Employees learned of layoffs via locked office doors
No severance packages provided initially
Violation of Utah WARN Act (requires 60-day notice for mass layoffs)
Clients still being charged despite no services provided
Week 3: The Legal Scramble
Bankruptcy filing on June 5, 2023
Emergency hearings to maintain minimal operations
Creditors lining up for pennies on the dollar
State attorney generals launching their own investigations
The mighty Lexington Law, which had processed billions in consumer fees and marketed itself as the premier credit repair firm in America, had just $4 million in cash when it filed for bankruptcy—against a $2.7 billion judgment.
What Happened to the Money?
This is the question that haunts victims: Lexington Law collected over $3.1 billion. Where did it go?
The Money Trail:
Executive Compensation: Millions in salaries and bonuses to top executives. SEC filings show CEO-level compensation packages in the seven figures annually.
Marketing and Advertising: Hundreds of millions spent on TV commercials, online ads, fake listing schemes, and affiliate commissions. At its peak, Lexington Law was spending over $100 million annually on marketing.
Operational Costs: Employee salaries for 1,100+ workers, office leases in Salt Lake City, technology infrastructure, legal fees defending against lawsuits.
Third-Party Affiliates: Tens of millions paid to the companies running the fake real estate schemes, based on how many consumers they funneled into Lexington Law's sales funnel.
Dividend Distributions: Payments to shareholders and owners before the bankruptcy.
By the time bankruptcy hit, it was all gone. The executives had their mansions. The marketing firms had their fees. The employees had their wages (until they were fired).
The victims? They had worthless credit reports and empty bank accounts.
The "Restructuring": Lipstick on a Pig
On September 28, 2023, Lexington Law announced they had "emerged from bankruptcy" and were "restructuring to serve consumers ethically."
They claimed to have learned from their mistakes. They touted a new "digital-first" business model compliant with all federal regulations. They promised they were different now.
But here's what actually changed:
What They Stopped Doing:
Telemarketing (because they're banned from it for 10 years)
Fake real estate schemes (because they got caught)
The most egregious billing practices (because the court ordered them to stop)
What Didn't Change:
The same company name
The same parent company structure
The same basic business model (monthly fees for minimal service)
The same John C. Heath law firm affiliation
The same executives (those who didn't resign)
Most tellingly, consumer reviews from late 2023, 2024, and 2025 tell the same story as pre-bankruptcy reviews:
"They took my money and did nothing.""Impossible to cancel.""Charged me after I canceled.""Zero results after 6 months."
A leopard doesn't change its spots. Lexington Law restructured just enough to stay in business, but the fundamental predatory nature remained.
The Industry Reckoning: A New Era Begins
The fall of Lexington Law sent shockwaves through the entire credit repair industry. For decades, predatory practices had been the norm. Upfront fees, exaggerated promises, and minimal service delivery were standard operating procedure.
Lexington Law's $2.7 billion judgment changed everything.
The Message to Other Companies
Within weeks of the Lexington Law judgment, credit repair companies across the country began making changes—not out of ethical awakening, but out of fear.
Industry Changes Observed:
Sudden emphasis on "compliance" in marketing materials
Removal of the most obviously false claims
Changes to billing practices
More prominent disclosure of consumer rights
Rewriting of service agreements
But the real question remained: How many other companies were operating the same way, just hoping not to get caught?
Why Credlocity Was Built Different From Day One
While Lexington Law was building its empire on fraud, a different vision was taking shape.
As a Board Certified Credit Consultant who had spent years in the industry, I watched Lexington Law's practices with growing alarm. I saw desperate clients being exploited. I saw illegal advance fees becoming the industry norm. I saw results that were either non-existent or could have been achieved for free by consumers themselves.
That's why when I founded Credlocity, every decision was deliberately designed to be the opposite of Lexington Law:
Where Lexington Law hid behind complexity, we chose transparency.Our clients see exactly what we're doing, when we're doing it, and why. No black boxes. No "proprietary methods." Just clear, honest communication about the credit dispute process.
Where Lexington Law pressured consumers into immediate enrollment, we offer a 30-day free trial.Try our service. See the results. See our approach. If you're not convinced we're providing real value, cancel without paying a penny. This is illegal under Lexington Law's business model—which is exactly why we do it.
Where Lexington Law charged illegal advance fees, we provide a 180-day money-back guarantee.If we don't deliver results, you get a full refund. We only make money when we deliver value. This aligns our interests with yours—the opposite of Lexington Law's subscription revenue model.
Where Lexington Law made cancellation difficult, we make it effortless.Cancel anytime, online, instantly. No phone calls. No retention departments. No hidden billing cycles. When you want to leave, you leave. This tells you everything about the difference between our services and theirs.
Where Lexington Law used templates, we create personalized strategies.Every credit situation is unique. Our Board Certified consultants analyze your specific situation and develop targeted strategies—not computer-generated template letters that credit bureaus flag as frivolous.
Where Lexington Law hid behind "attorney" branding, we lead with real expertise.Board Certified Credit Consultants. Real experience. Real credentials. And we're honest about what we are: credit experts, not attorneys (unless you need one, in which case we'll tell you).
Where Lexington Law automated everything, we prioritize human connection.Monthly one-on-one consultations. Direct access to your credit specialist. Real people reviewing your case and making strategic decisions. Technology enhances our service; it doesn't replace the human element.
Where Lexington Law kept clients in the dark, we educate and empower.We provide comprehensive resources about credit, your rights under CROA, FCRA, and FCBA. We want you to understand the process so you can make informed decisions. An educated client is an empowered client.
This isn't marketing spin—it's how we've operated since day one, years before Lexington Law's collapse vindicated our approach.
The Evolution of Ethical Credit Repair
The Lexington Law scandal has created space for a new generation of credit repair companies built on different principles:
The New Standard:
Compliance with all federal laws as baseline, not optional
Transparency as competitive advantage
Consumer education as core service
Technology enabling, not replacing, personalization
Performance-based pricing
Easy cancellation as sign of confidence
Realistic expectations, not false promises
At Credlocity, we've built every system around these principles because we believe they're not just ethically correct—they're better business.
When you provide real value, you don't need fake real estate schemes to acquire customers.When you deliver results, you don't need to make cancellation difficult.When you're transparent, you don't need to hide behind legal jargon.When you follow the law, you don't need to fear the CFPB.
This is what ethical credit repair looks like in 2025—and it's a direct response to the Lexington Law era that thankfully, finally, came crashing down.
The Aftermath: Justice, Refunds, and Lessons Learned
The CFPB's work wasn't finished with the judgment. Beginning in December 2024, the agency began the complex process of getting money back to victims.
The Refund Program: What Victims Need to Know
Between December 5, 2024, and January 6, 2025, the CFPB is distributing $1.8 billion to over 4 million victims of Lexington Law's fraud.
How It Works:
Automatic distribution: If you were a victim, you don't need to apply. The CFPB identified eligible consumers from Lexington Law's records.
Checks by mail: Physical checks sent to your last known address
Pro-rata distribution: Amount based on what you paid to Lexington Law
Average refund: $450-$600 (not full refunds—not enough money for that)
Additional rounds possible: If funds remain after initial distribution
Who's Eligible:
Customers of Lexington Law or CreditRepair.com
Between March 2016 and March 2023
Who were signed up through telemarketing
Who paid advance fees before services were completed
Contact Information:
Administrator: JND Legal Administration
Phone: 1-855-680-8991 (Monday-Friday, 8am-9pm ET)
Website: www.cfpb-lexlaw.org
Email: info@cfpb-lexlaw.org
Critical Warning About Scams:
Scammers are targeting Lexington Law victims. Here's what to watch for:
🚨 RED FLAGS:
Anyone offering to "help" you get your refund for a fee
Requests for banking information or personal details
Demands for upfront payment to "expedite" your check
Calls asking for Social Security numbers or account information
Claims of "special access" to larger refunds
Remember: The refund is completely automatic. You don't need to do anything, pay anything, or provide any information to receive your check.
If someone contacts you about the Lexington Law settlement and asks for money or personal information, hang up immediately and report them to the FTC at reportfraud.ftc.gov.
For complete details on the settlement and refund process, see our comprehensive coverage: Lexington Law Settlement: Complete Guide to CFPB Refunds →
The Victims Who Won't Get Full Justice
Here's the hard truth: most victims won't be made whole.
Maria Santos, who we met at the beginning of this story? She paid $1,100 to Lexington Law. Her refund check? $287.
Rachel Martinez, the single mother? She paid $1,390. Her refund: $356.
James Thompson, the veteran? He paid $1,580. His refund: $402.
The refund program is distributing $1.8 billion, but Lexington Law collected $3.1 billion. The math doesn't work out in victims' favor.
And the non-monetary damages—Rachel's children changing schools, James's lost business opportunity, the Chens' retirement savings lost to higher interest rates—those can never be refunded.
This is why prevention is so critical. This is why consumers need to know the warning signs. This is why the Lexington Law story must be told, shared, and remembered.
Warning Signs: How to Spot the Next Lexington Law
The techniques Lexington Law used aren't unique. Other companies may be using similar playbooks right now. Here's how to protect yourself:
Red Flag #1: The Too-Good-To-Be-True Offer
If you're shopping for housing, jobs, loans, or other financial products and suddenly someone wants to talk about your credit first, be suspicious.
Lexington Law's approach: Fake real estate listingsHow others might do it: Fake job postings, fake loan approval offers, fake scholarship opportunities
The pattern: Offer something desirable → Check your credit → Deliver bad news → Offer credit repair solution
If the thing you originally sought mysteriously becomes unavailable and credit repair suddenly becomes the focus, walk away.
Red Flag #2: Upfront Fees or Charges Before Service
This is illegal under federal law. Period.
If any credit repair company asks for payment before completing their work, they're violating CROA. Report them immediately to the CFPB.
Legal alternatives:
Companies offering money-back guarantees (like Credlocity)
Companies with free trials (like Credlocity)
Pay-for-performance models
DIY approaches (completely free)
If they say: "Just a small setup fee..."You should think: Illegal advance fee
Red Flag #3: Promises About Removing Accurate Information
Under federal law, credit bureaus must report accurate information. No legitimate company can promise to remove accurate negative items.
If they promise:
"We can remove bankruptcies!"
"We delete judgments and liens!"
"We erase all negative items!"
They're lying. Legitimate credit repair can only remove inaccurate, unverifiable, misleading, or unfair items.
Credlocity's approach: We review your report, identify items that can legitimately be challenged, and set realistic expectations about outcomes. We won't take your money promising the impossible.
Red Flag #4: Pressure Tactics and Urgency
Legitimate services don't need to pressure you.
Lexington Law's approach: "Others are interested in this property..." "Limited time offer..." "You'll lose this opportunity..."
What legitimate companies do: Give you time to research, compare, and decide. Provide written information to review. Answer questions without pressure.
At Credlocity, we offer a 30-day free trial specifically so you can evaluate our service without pressure. If we're good, you'll see the value. If not, you're not out anything.
Red Flag #5: Vague About Process or "Proprietary Methods"
If they can't or won't explain exactly what they'll do, it's because what they'll do isn't special.
Why companies hide their process: Because if you knew how simple it was, you'd realize you could do it yourself or that it's just template letters.
What transparency looks like: At Credlocity, we explain exactly what we'll do, show you sample strategies, and educate you about the process. We're confident that even when you understand the process, you'll see value in our expertise, personalization, and support.
Red Flag #6: Poor Reviews with Consistent Themes
One or two bad reviews? That's normal. Hundreds of reviews saying the same things? That's a pattern.
Lexington Law's review profile:
BBB Rating: C-
BBB Customer Reviews: 1.8/5 stars
Hundreds of complaints about: no results, billing fraud, impossible to cancel, deceptive practices
What to look for:
Check multiple review platforms (BBB, Trustpilot, Google, Consumer Affairs)
Look for patterns in complaints
Read the company's responses to complaints
Check for CFPB complaints specifically
Red Flag #7: "Attorney-Backed" or "Law Firm" as Primary Selling Point
Here's a secret from 17 years in the industry: for standard credit disputes, attorney involvement provides zero additional value.
Credit bureaus don't care if a dispute comes from an attorney or a consumer. They follow the same investigation process either way. The Fair Credit Reporting Act doesn't give attorneys special powers.
When you actually need an attorney:
Suing a credit bureau for FCRA violations
Suing a debt collector for harassment
Complex legal issues beyond simple disputes
After all other methods have failed
For standard credit repair: You need expertise in credit reporting, not a law degree.
At Credlocity, we're honest about this. Our Board Certified Credit Consultants have deep expertise in credit reporting, consumer protection law, and dispute strategies—which is what actually matters. If you need an actual attorney, we'll tell you.
Red Flag #8: Making Cancellation Difficult
Easy cancellation is a sign of confidence. Difficult cancellation is a sign of a company that knows their service doesn't justify the price.
Warning signs:
Must call during specific hours
Transferred multiple times
Pressure to stay ("You're making progress!")
Charges continue after cancellation
Claims about "billing cycles"
Requirement for written notice via certified mail
What legitimate companies do: Make cancellation easy (often online), honor cancellation immediately, stop all charges immediately.
Credlocity: Cancel anytime, instantly, online. No phone calls required. No questions asked. No charges after cancellation.
Trust Your Instincts
If something feels wrong, it probably is. If you're being pressured, slow down. If promises seem too good, they probably are.
The credit repair industry has too many Lexington Laws—companies built on deception, surviving on consumer hope and confusion.
But it also has legitimate professionals who follow the law, provide real value, and treat consumers with respect.
The difference? It's in these red flags.
Your Rights: What Federal Law Actually Says
One of Lexington Law's most effective tactics was keeping consumers in the dark about their legal rights. An informed consumer is a protected consumer. Here's what federal law actually says:
The Credit Repair Organizations Act (CROA)
CROA was created specifically to prevent companies like Lexington Law. Key provisions:
Your Right to No Advance Fees:15 U.S.C. § 1679b(b) explicitly states: "No credit repair organization may charge or receive any money... before such service is fully performed."
If anyone charges you before completing their work, they're breaking federal law.
Your Right to a Written Contract:You must receive a detailed written contract explaining:
Services to be performed
How long it will take
Total cost
Your three-day cancellation right
Their legal obligations
No contract? Illegal. Vague contract? Probably illegal.
Your Three-Day Cancellation Right:You can cancel within three business days for any reason, no penalty. They must inform you of this right clearly.
Your Right to Sue:If a credit repair company violates CROA, you can sue for:
Actual damages (what you lost)
Statutory damages up to $1,000 per violation
Punitive damages if violations were willful
Attorney's fees and costs (they pay if you win)
The Fair Credit Reporting Act (FCRA)
FCRA governs how credit information is reported and gives you powerful rights:
Your Right to Dispute:You can dispute any inaccurate information directly with credit bureaus—for free. Credit repair companies can't do anything you can't do yourself.
Your Right to Investigation:Bureaus must investigate disputes within 30 days. If they don't, or if they can't verify the information, they must delete it.
Your Right to Free Credit Reports:AnnualCreditReport.com provides free reports from all three bureaus annually.
Your Right to Sue:If credit bureaus or furnishers violate FCRA, you can sue for damages and attorney's fees.
The Fair Credit Billing Act (FCBA)
FCBA protects you when disputing charges:
Your Right to Dispute Charges:If Lexington Law (or any company) charged you improperly, you can dispute the charges with your credit card company within 60 days.
Your Right to Withhold Payment:During a billing dispute, you can withhold payment on the disputed amount.
Your Right to Investigation:Your card issuer must investigate within two billing cycles.
How to Enforce Your Rights
Step 1: Document EverythingKeep copies of all contracts, emails, letters, and records of phone calls.
Step 2: File Complaints
CFPB: consumerfinance.gov/complaint or (855) 411-2372
FTC: reportfraud.ftc.gov
State Attorney General: Find yours at naag.org
BBB: bbb.org
Step 3: Consult an Attorney If NeededFor CROA or FCRA violations, many consumer rights attorneys work on contingency (no upfront costs—they only get paid if you win).
Look for attorneys through:
National Association of Consumer Advocates (consumeradvocates.org)
Your state bar association's referral service
Remember: these laws exist because of companies like Lexington Law. Use them.
The DIY Alternative: What You Can Do Yourself
Here's what Lexington Law didn't want you to know: everything they did, you can do yourself for free.
The Truth About Credit Repair
Credit repair isn't magic. It's not complicated. It doesn't require attorneys. Here's what it actually is:
Step 1: Review your credit reports for errorsStep 2: Write letters disputing inaccurate itemsStep 3: Send letters to credit bureausStep 4: Follow up on their investigationsStep 5: Repeat as needed
That's it. That's what Lexington Law charged $100+ per month for.
How to Do It Yourself
Get Your Credit Reports Free:
Visit AnnualCreditReport.com
Request reports from all three bureaus
Review carefully for errors
Identify Inaccurate Items:
Accounts that aren't yours
Wrong balances or payment history
Duplicate accounts
Outdated information (over 7 years old)
Identity theft accounts
Write Dispute Letters:
Simple template:
[Your Name]
[Address]
[Date]
[Credit Bureau Name]
[Address]
Re: Dispute of Inaccurate Information
Dear [Bureau]:
I am disputing the following information on my credit report:
[Creditor name], Account #[number]
This information is inaccurate because: [specific reason]
Under the Fair Credit Reporting Act, please investigate this dispute and delete the inaccurate information.
Enclosed: [supporting documents]
Sincerely,
[Your signature]Send to All Three Bureaus:
Experian: P.O. Box 4500, Allen, TX 75013
Equifax: P.O. Box 740256, Atlanta, GA 30374
TransUnion: P.O. Box 2000, Chester, PA 19016
Send via certified mail (costs ~$5, provides proof of delivery).
Wait 30 Days:Bureaus must investigate and respond.
Follow Up:If items aren't deleted, request "method of verification" or send additional disputes with more documentation.
For step-by-step instructions and sample letters: Complete Credit Repair Guide →
When DIY Makes Sense vs. When to Get Help
DIY is perfect if:
You have simple issues (few items to dispute)
You're organized and detail-oriented
You have time to dedicate
You're comfortable with paperwork
You want to save money
Professional help makes sense if:
You have complex issues (many items across all three bureaus)
You're overwhelmed by the process
You don't have time
You want expert strategy and guidance
You've tried DIY without success
The key difference between DIY and professional help isn't what gets done (the dispute letters are similar). It's:
Strategy: Knowing which items to dispute, in what order, with what arguments
Expertise: Understanding credit bureau behavior and how to optimize results
Efficiency: Not wasting time on disputes unlikely to succeed
Support: Having someone to guide you through the process
At Credlocity, we're honest about this. Could you do it yourself? Yes. Would you get the same results? Maybe—if you invest significant time learning credit law and dispute strategies.
Our value isn't in doing something you can't do. It's in doing it strategically, efficiently, and correctly the first time—backed by 17 years of expertise and Board Certification.
Try our 30-day free trial and decide for yourself: Start Free Trial →
Frequently Asked Questions About the Lexington Law Scandal
Q: Did Lexington Law actually get shut down?
Not permanently, though they came close. Lexington Law filed for Chapter 11 bankruptcy in June 2023, laid off 900 employees (80% of their workforce), and shut down 80% of operations including all call centers. However, they "emerged" from bankruptcy in September 2023 with a restructured business model. They're still operating in 2025, but under heavy restrictions including a 10-year ban on telemarketing. Current reviews suggest they haven't fundamentally changed their practices despite claims of being "compliant" and "reformed."
Q: Is Lexington Law a scam?
Federal investigators and the courts say yes. The CFPB called it "the largest credit repair fraud in American history." The U.S. District Court found that Lexington Law systematically violated federal law through fake real estate schemes, illegal advance fees, deceptive marketing, and providing virtually worthless services. The $2.7 billion judgment isn't for mistakes—it's for deliberate, systematic fraud spanning years and affecting over 700,000 consumers. Even post-bankruptcy, hundreds of consumer complaints describe the same predatory practices continuing.
Q: What was the "rent-to-own" scheme?
Lexington Law paid third-party affiliates to post fake rent-to-own property listings online. When desperate consumers called about these non-existent homes, they'd be told their credit was too low to qualify—but Lexington Law could "fix" their credit so they could get the house. This bait-and-switch targeted financially vulnerable people seeking housing. Internal emails proved Lexington Law executives knew about and encouraged this fraudulent scheme. The properties never existed; the sole purpose was funneling people into their credit repair services.
Q: Will I get a refund if Lexington Law scammed me?
If you were a Lexington Law or CreditRepair.com customer between March 2016 and March 2023, you're likely eligible for an automatic refund. The CFPB is distributing $1.8 billion to over 4 million victims through JND Legal Administration (December 2024-January 2025). You don't need to apply—checks are being mailed automatically. Average refunds are $450-$600 (not full refunds; there isn't enough money for that). Contact JND at 1-855-680-8991 or www.cfpb-lexlaw.org if you believe you're eligible but haven't received your check. For complete details: Lexington Law Settlement Guide →
Q: Can I still sue Lexington Law individually?
Yes, you may have grounds for individual legal action under CROA, which allows consumers to sue for actual damages plus up to $1,000 in statutory damages per violation, plus attorney's fees. However, recovering money may be difficult since Lexington Law went through bankruptcy. Consult a consumer rights attorney specializing in FCRA/CROA violations (many work on contingency with no upfront costs). Even if you receive the CFPB settlement refund, you may still have additional legal claims, especially if you suffered damages beyond the fees you paid.
Q: Are Lexington Law reviews fake?
There's strong evidence of review manipulation. Lexington Law's own website shows overwhelmingly positive reviews, while independent platforms paint a dramatically different picture: BBB rating of C- with 1.8/5 stars, hundreds of complaints on Trustpilot, Consumer Affairs, and Yelp describing scams and no results. This disparity, combined with clusters of similar positive reviews posted on the same dates, suggests fake review posting to counteract legitimate negative feedback. Always check multiple independent review platforms before trusting any company.
Q: What laws did Lexington Law break?
The federal court found multiple violations: (1) Telemarketing Sales Rule (TSR) - illegal advance fees, failed disclosures, misrepresentations; (2) Credit Repair Organizations Act (CROA) - advance payments before service completion, misleading statements, inadequate contracts; (3) Consumer Financial Protection Act - unfair, deceptive, and abusive practices. These weren't technical violations—they were systematic, deliberate, and core to their business model. Learn more about these protections: CROA Guide → | TSR Guide →
Q: Should I use Lexington Law in 2025?
Absolutely not. Despite claims of "restructuring," Lexington Law has a proven track record of systematic fraud resulting in a $2.7 billion judgment. They built their empire on deception, filed for bankruptcy to avoid accountability, and current reviews from 2024-2025 show the same problems continuing: no results, billing issues, difficulty canceling. There are far better alternatives. At Credlocity, we built our entire company to be the ethical opposite of Lexington Law—30-day free trial, 180-day money-back guarantee, complete transparency, easy cancellation, and real results. Compare: Credlocity vs. Lexington Law →
Q: How do I cancel Lexington Law services?
If you're currently enrolled, cancel immediately: (1) Call 1-877-401-1938 and firmly demand cancellation, (2) Follow up in writing via certified mail to 725 Canton Street, Norwood, MA 02062 stating you're exercising your cancellation rights under CROA, (3) Document everything—dates, names, confirmation numbers, (4) Monitor your credit card for charges after cancellation, (5) Dispute any unauthorized charges with your credit card company under your FCBA rights, (6) File a CFPB complaint if they don't honor your cancellation or continue charging you.
Q: What's the best alternative to Lexington Law?
Credlocity offers everything Lexington Law claimed to provide, but actually delivers it ethically and legally. We're led by Board Certified Credit Consultants with 17 years of experience, and we built our company specifically as the ethical alternative to predatory companies like Lexington Law. Key differences: 30-day free trial (try before you pay), 180-day money-back guarantee (we only profit if you get results), complete transparency (see exactly what we're doing), personalized strategies (not templates), easy cancellation (online, anytime), and full compliance with all federal laws. For budget-conscious consumers, DIY using our free resources is also effective: Credit Repair Guide →
Q: Can legitimate credit repair companies remove accurate negative items?
No, and any company claiming otherwise is lying and violating federal law. Credit bureaus are required to report accurate information. Legitimate credit repair can only challenge inaccurate, unverifiable, misleading, or unfair items. If something is accurate and verifiable—like a legitimate late payment, bankruptcy, or collection—it can only be removed if: (1) the creditor agrees to delete it (goodwill deletion), (2) it's past the legal reporting period (7-10 years), or (3) the creditor can't verify it when challenged. Lexington Law's promises to remove bankruptcies and judgments were fraudulent misrepresentations.
Q: How long does legitimate credit repair take?
Realistic timeline: 3-6 months for noticeable results. Each dispute cycle takes 30-45 days for credit bureaus to investigate, and most cases require multiple rounds. Be immediately suspicious of anyone promising results in days or weeks—that's a red flag. Lexington Law often kept customers enrolled for years with minimal progress, maximizing monthly fees while delivering poor results. At Credlocity, we set realistic expectations upfront: credit repair is a process, not an overnight fix. Our typical client sees meaningful results within 3-4 months, with some items removed sooner.
Q: What if Lexington Law already damaged my credit?
Some consumers report that Lexington Law's generic, template-driven disputes actually made things worse—credit bureaus flagged the disputes as "frivolous" and refused to investigate. If this happened to you: (1) Stop using Lexington Law immediately, (2) Request copies of what they sent on your behalf, (3) Wait 6 months before disputing the same items again (to avoid "repeat frivolous dispute" flags), (4) When you re-dispute, use personalized, detailed letters with new information or documentation, (5) Consider professional help from an ethical company like Credlocity that uses strategic, non-template approaches. You may also have legal claims against Lexington Law for damages.
Q: How much did Lexington Law charge?
Lexington Law's fee structure: Initial "work fee" of $99.95-$199.90 charged immediately, "processing fee" of $19.95-$29.95 charged immediately, monthly fee of $89.95-$129.95 (most common: $119.95). This means most customers paid $200-$330 upfront, then $90-$130 monthly for as long as they remained enrolled. Over a typical 8-12 month enrollment, total cost ranged from $900-$1,800. The CFPB found that between 2016-2023, Lexington Law collected over $3.1 billion from consumers—an average of over $1,100 per victim.
Q: Can I do credit repair myself instead of using Lexington Law?
Yes, absolutely—and you'll probably get better results than Lexington Law provided. Everything they did, you can do yourself for free. The process: (1) Get free credit reports from AnnualCreditReport.com, (2) Review for inaccurate information, (3) Write simple dispute letters explaining errors, (4) Send via certified mail to credit bureaus, (5) Follow up after 30 days. Lexington Law charged $100+/month for template letters you could have sent yourself. We've created a comprehensive, free guide: Complete Credit Repair Guide →. For more complex situations, professional help from an ethical company can provide strategic value, but basic disputes are definitely DIY-able.
Q: What happened to the executives who ran Lexington Law's fraud?
This is a frustrating aspect of the case. While Lexington Law as a company faced a $2.7 billion judgment and bankruptcy, individual executives largely escaped personal criminal prosecution. Civil penalties were imposed on Progrexion Marketing ($45.8 million) and the Heath law firm ($18.4 million), but these are likely uncollectible due to bankruptcy. The executives who profited from the fraud—receiving millions in salaries and bonuses while the scam operated—have not been held personally accountable. This is common in corporate fraud cases and highlights the importance of consumer vigilance and voting with your dollars.
Q: Are other credit repair companies doing the same thing?
Possibly. The CFPB's investigation revealed that many of Lexington Law's practices were standard in the industry. Since the Lexington Law judgment, many companies have made superficial changes to appear compliant while maintaining predatory practices. Warning signs to watch for: upfront fees, pressure tactics, unrealistic promises, vague processes, difficult cancellation, poor reviews. The Lexington Law case has created an opportunity for truly ethical companies to differentiate themselves—like Credlocity, which was built from day one to operate transparently and legally. Always research thoroughly and look for the red flags outlined in this article.
Q: What should I do if I suspect a credit repair scam?
Take action immediately: (1) Stop making payments, (2) Cancel services in writing via certified mail, (3) File complaints with CFPB (consumerfinance.gov/complaint), FTC (reportfraud.ftc.gov), BBB (bbb.org), and your state attorney general, (4) Dispute any charges with your credit card company under FCBA, (5) Document everything—save all emails, letters, contracts, payment records, (6) Review what they actually did (or didn't do) on your behalf, (7) Consult a consumer rights attorney if you suffered significant damages, (8) Share your story to warn others. The Lexington Law case proves that large-scale fraud can be prosecuted—but it requires consumers reporting violations.
The Bottom Line: Choose Ethics Over Empty Promises
After 17 years in credit repair and watching the Lexington Law empire rise and fall, I can tell you this with certainty: the industry is at a crossroads.
For decades, companies like Lexington Law thrived by exploiting the vulnerable, operating in the gray areas of consumer protection law, and betting that most consumers wouldn't complain, wouldn't report, and wouldn't fight back.
The $2.7 billion judgment changed the calculation.
But here's what concerns me: Lexington Law is still operating. Under restrictions, yes. Claiming to be reformed, yes. But fundamentally, the same company that built an empire on fraud is still taking money from consumers.
And they're not alone. Too many companies in this industry still operate on the old playbook: charge as much as possible, deliver as little as necessary, make it hard to leave, and hope consumers don't realize they're being scammed.
This is why Credlocity exists.
We built our company as a direct response to everything wrong with the Lexington Law era. Every policy, every procedure, every customer interaction is designed to be the opposite of their predatory approach:
Where they hid behind complexity, we embrace transparency
Where they charged illegal advance fees, we offer free trials and guarantees
Where they made false promises, we set realistic expectations
Where they used templates, we create personalized strategies
Where they made cancellation difficult, we make it effortless
Where they followed the letter of the law (when forced), we exceed it
This isn't marketing. This is how we operate every single day.
The Choice Is Yours
If you need credit repair help, you have options:
Option 1: DIYUse our free comprehensive guide and do it yourself. It's completely possible and costs nothing but your time.
Option 2: Ethical Professional HelpTry Credlocity's 30-day free trial. See our approach. Experience our transparency. Evaluate our results. If it's not worth it, you haven't lost anything.
Option 3: Continue to be vulnerable to scamsUnfortunately, as long as companies like post-bankruptcy Lexington Law exist, this remains an option—but it shouldn't be yours.
The Larger Message
The Lexington Law scandal isn't just about one fraudulent company. It's about an industry that for too long operated without adequate oversight, targeting vulnerable consumers who had few alternatives and limited knowledge of their rights.
It's also about consumer power.
Lexington Law didn't fall because of chance. They fell because:
Consumers filed complaints with the CFPB
Victims came forward to share their stories
Investigators had the evidence they needed
The CFPB had the political will to act
The courts took consumer protection seriously
Your complaints matter. Your stories matter. Your choices matter.
Every time you:
Report a scam to the CFPB
Leave an honest review
Share a warning with friends
Choose an ethical company over a predatory one
Learn your rights and exercise them
...you make the industry a little bit better.
A New Era
The fall of Lexington Law marked the end of an era of unchecked credit repair fraud. From its ashes, we have an opportunity to build something better:
An industry where transparency is the norm, not the exception.Where consumer protection is baked into business models, not an afterthought.Where companies compete on results and service, not deception and manipulation.Where vulnerable consumers are educated and empowered, not exploited.
At Credlocity, we're committed to being part of that new era.
The question is: what will you choose?
Take Action: Protect Yourself and Others
If you were scammed by Lexington Law:
Check your refund eligibility: www.cfpb-lexlaw.org or call 1-855-680-8991
File a CFPB complaint: consumerfinance.gov/complaint
Cancel if still enrolled: Follow the steps outlined earlier in this article
Dispute unauthorized charges: Use your FCBA rights
Consult an attorney about additional claims: Many work on contingency
Share your story: Warn others in your community
If you need credit repair help:
Start with education: Read our Complete Credit Repair Guide
Consider DIY: Use free resources and do it yourself
Or try Credlocity: Start your 30-day free trial
Never pay upfront fees: It's illegal—report any company that charges them
Help protect others:
Share this article with anyone considering credit repair services
Report scams to the CFPB, FTC, and BBB
Leave honest reviews about your experiences
Educate your community about consumer rights
Support ethical businesses with your dollars
Related Reading
Lexington Law Settlement: Complete Refund Guide - Everything you need to know about the CFPB settlement and getting your refund
Credlocity vs. Lexington Law: The Ethical Alternative - A detailed comparison showing how ethical credit repair actually works
Complete Credit Repair Guide - Step-by-step instructions for DIY credit repair
Understanding CROA: Your Credit Repair Rights - Know the law that protects you
FCRA Rights Guide - Your rights under the Fair Credit Reporting Act
FCBA Consumer Protections - How to dispute fraudulent charges
TSR Compliance in Credit Repair - Understanding telemarketing protections
About the Author:
Joeziel Vazquez is the CEO of Credlocity and a Board Certified Credit Consultant (BCCC, CCSC, CCRS) with 17 years of experience in credit restoration and consumer advocacy. After witnessing industry fraud for over a decade, he founded Credlocity in direct response to predatory companies like Lexington Law, building an ethical alternative focused on transparency, consumer education, and real results. Joeziel specializes in complex credit repair, consumer protection law, and exposing fraudulent practices in the credit repair industry.
Professional Credentials:
Board Certified Credit Consultant (BCCC)
Certified Credit Score Consultant (CCSC)
Certified Credit Repair Specialist (CCRS)
17+ Years Credit Industry Experience
CEO, Credlocity
Consumer Rights Advocate
Connect with Joeziel:LinkedIn: linkedin.com/in/mrcreditguru
Disclaimer: This article is for informational and educational purposes only and does not constitute legal advice. While the author is a certified credit consultant with extensive experience, laws are complex and vary by situation. For specific legal guidance, consult with a qualified consumer rights attorney. All information about the Lexington Law case is based on public court records, CFPB announcements, and documented consumer complaints. Information current as of October 31, 2025.
Follow Credlocity for more consumer protection investigations and credit industry news.
This investigation took months to compile. If it helped you, please share it to warn others.
I am aware of this scam now. And I've been a victim for altleast 8 yrs. What to do and how do I move forward