The CFPB filed a lawsuit in federal district court against a Nevada corporation and its president and CEO for charging illegal upfront fees and deceiving consumers. The company offers debt-relief services to consumers. The CFPB alleges that the company falsely claims that it does not charge consumers upfront fees for debt-relief services and falsely represents to consumers that they will become debt free in months.
The CFPB alleges that the defendants have violated the Telemarketing Sales Rule and the Dodd-Frank Act. The Dodd-Frank Act prohibits deceptive acts or practices in the consumer financial marketplace.