Credit Repair Co. Settles Class Action For $12.5M

Law360, New York (September 30, 2011, 2:09 PM EDT) -- Credit repair firm Lexington Law on Thursday agreed to pay up to $12.5 million in in-kind services to settle proposed class action claims in California that it illegally blocked clients from directly contacting the credit bureaus.

A California federal judge must approve the settlement, which would have the firm give class members free identity protection or credit report maintenance services for at least a month.

The firm was accused by a former client of violating the Credit Repair Organizations Act, which states that companies that help...
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