Shady Business: Understanding Predatory Credit Repair Practices

Can a 1995 Federal Rule Stop the Worst Abuses of Credit Repair Companies? Maybe.

The federal Telemarketing Sales Rule (TSR), on the books since 1995, contains language that, if enforced, could pose an existential threat to the credit repair industry. That’s why the Consumer Financial Protection Bureau (CFPB) based two recent cases against industry actors on violations of the TSR, instead of the more far-reaching Credit Repair Organizations Act. And, so far, we see the industry struggling to present a defense, outside of claims that the TSR defies their first amendment rights.

This webinar will look at the loophole in the Fair Credit Reporting Act that gave rise to the credit repair industry - and allows it to continue to thrive. After that, we’ll turn to the text of the TSR and how it closes the loophole for companies subject to the Rule. We’ll also review weaknesses of the TSR, and what states can do to counter those weaknesses. Listeners will hear from a community activist with lived experience of the credit repair industry, from an NCLC attorney who authored a recent paper on state options, and from the co-CEO of Working Credit NFP. Leave the webinar with concrete guidance for supporting those affected by this issue.