Lexington Law Lawsuit 2026: Payouts, Eligibility, and Claims

The Lexington Law lawsuit is one of the largest consumer protection enforcement actions in U.S. history: the Consumer Financial Protection Bureau won a nearly $2.7 billion judgment against Lexington Law, CreditRepair.com, and their parent companies, and $1.8 billion of that has already been returned to more than 4.3 million harmed consumers.

The scale here is hard to overstate this wasn’t a private class action but a federal government enforcement case, and it forced both credit repair giants into bankruptcy and out of business entirely within months of the final judgment.

If you’re researching other CFPB or FTC enforcement actions against consumer finance companies, our coverage of the Affirm lawsuit landscape shows how much harder it can be to separate real litigation from unverified online claims — a contrast to this case, where the payout is real, confirmed, and largely already distributed.

One fact worth knowing: if the $1.8 billion in refunds had been split evenly among all 4.3 million eligible consumers, each person would have received about $419 — though actual payments were calculated on a pro-rata basis tied to how much each person actually paid the companies.

Quick Facts

Detail	Information
Plaintiff	Consumer Financial Protection Bureau (CFPB)
Defendants	Progrexion Marketing, Inc.; PGX Holdings, Inc.; Progrexion Teleservices, Inc.; eFolks, LLC; CreditRepair.com, Inc.; John C. Heath, Attorney at Law, PLLC d/b/a Lexington Law
Court	U.S. District Court for the District of Utah
Case Number	2:19-cv-00298-BSJ
Core Allegation	Illegal upfront fees and deceptive, bait-and-switch telemarketing for credit repair services
Final Judgment Date	August 30, 2023
Total Judgment	$2,660,926,481 in consumer redress, plus $45,817,452 and $18,408,726 in civil penalties
Consumer Refunds Distributed	$1.8 billion to more than 4.3 million consumers, primarily December 2024–January 2025

What Is the Lexington Law Lawsuit About?

The Lexington Law lawsuit was a federal enforcement case brought by the CFPB against Lexington Law, CreditRepair.com, and their parent and affiliate companies, collectively known as Progrexion. The government alleged the companies violated the Consumer Financial Protection Act and the Telemarketing Sales Rule by charging customers upfront fees for credit repair services before actually performing any work — a practice the Telemarketing Sales Rule specifically prohibits.

The case was filed in the U.S. District Court for the District of Utah under case number 2:19-cv-00298-BSJ. After years of litigation, the court entered final judgment on August 30, 2023, finding the companies liable and ordering them to pay nearly $2.7 billion in consumer redress.

Key Takeaway: This wasn’t a class action filed by private consumers — it was a direct federal enforcement action by the CFPB, which is why the resulting payout process didn’t require most consumers to file a claim at all.

Class Action Lawsuit / Legal Status Overview

Although commonly searched as a “lawsuit,” this matter is more precisely a CFPB civil enforcement action, not a private class action. The distinction matters for how compensation worked:

Aspect	Private Class Action	This CFPB Case
Who sues	Private plaintiffs’ attorneys on behalf of a class	The federal government (CFPB)
Claims process	Usually requires consumers to file a claim	Most eligible consumers received checks automatically, based on company records
Funding source	Negotiated settlement fund	Court-ordered judgment and civil penalties

Key Takeaway: Because the CFPB already had records of who paid these companies and how much, most eligible consumers didn’t need to do anything to receive their refund — a key difference from typical class action settlements.

Latest Update 2026

The primary distribution of the $1.8 billion refund pool occurred between December 5, 2024, and January 6, 2025, when JND Legal Administration mailed checks to more than 4.3 million eligible consumers. Since then, the administrator has continued periodic reissue runs — roughly every two months — for consumers whose original checks were lost, undelivered, or expired uncashed.

As of the most recent confirmed reissue cycle, checks reissued in September 2025 carried an expiration date of December 11, 2025, with each reissued check valid for 90 days from its issue date. Consumers seeking a reissue were advised to wait until October 1, 2025, before submitting a request, to allow time for original mail delivery.

Key Takeaway: If you were eligible and never received or cashed your check, the reissue process is still active — but each reissued check has its own 90-day expiration window, so timely action matters.

Key Allegations / Deceptive Practices

The CFPB’s case centered on two main categories of alleged misconduct:

• Illegal advance fees: The Telemarketing Sales Rule requires companies selling services via telemarketing to actually perform the promised work before charging customers. The CFPB alleged Lexington Law and CreditRepair.com routinely charged fees upfront, before any credit repair results were delivered.
• Deceptive, bait-and-switch advertising: The companies were accused of marketing credit repair services in misleading ways that didn’t match what customers actually received once enrolled.

Key Takeaway: The core violation wasn’t that credit repair itself is illegal — it’s that these specific companies allegedly billed customers before doing the work the Telemarketing Sales Rule requires them to complete first.

Company Background: How Lexington Law and CreditRepair.com Operated

Lexington Law and CreditRepair.com operated under a shared corporate umbrella known as Progrexion, which for years was one of the largest names in the credit repair industry, marketing services designed to help consumers dispute inaccurate items on their credit reports. Lexington Law operated under the name John C. Heath, Attorney at Law, PLLC.

Following the August 30, 2023 final judgment, both companies filed for bankruptcy, and their credit repair services were fully shut down — meaning consumers can no longer sign up for either company’s services at all.

Consumer Complaints and Regulatory History

This case followed years of consumer complaints and prior regulatory scrutiny of the credit repair industry’s telemarketing practices broadly. The CFPB’s own consumer advisories, issued around the time of the settlement, reminded consumers generally that they have the right to cancel credit repair services and should be wary of any company demanding payment before delivering results.

Who Qualified for a Refund

Eligibility for the $1.8 billion refund distribution was based on two distinct time windows and circumstances:

• Consumers who paid Lexington Law or CreditRepair.com for credit repair services between March 8, 2016, and August 30, 2023, after being solicited through telemarketing by the defendants.
• Consumers who paid for services between July 21, 2011, and August 30, 2023, if they were live-transferred to Lexington Law or CreditRepair.com by a deceptive marketing affiliate.

Key Takeaway: The eligibility window is unusually long — spanning over a decade for the affiliate-transfer category — reflecting how long the CFPB’s investigation found the alleged practices had been occurring.

Refund Amount and How Payouts Were Calculated

Refunds were not distributed as a flat amount per person. Instead, payments were calculated on a pro-rata basis tied to how much each individual consumer actually paid the companies during the eligible period. For reference, if the full $1.8 billion had been divided evenly among the 4.3 million eligible consumers, each person would have received roughly $419 — but actual amounts varied significantly based on individual payment history.

How to Check Your Status or Request a Reissue

Because most eligible consumers received payments automatically, there was no traditional “how to file a claim” process for the initial distribution. For consumers who believe they were eligible but never received a check, or whose check was lost or expired:

1. Visit the official settlement administrator’s website at cfpb-lexlaw.org.

2. Locate your Unique ID from prior correspondence, if available.

3. Submit a reissue request through the website or by emailing info@cfpb-lexlaw.org, providing your name and current address.

4. Alternatively, contact the administrator by phone at 1-855-680-8991, or by mail at: Lexington Law Matter c/o JND Legal Administration, P.O. Box 91015, Seattle, WA 98111.

5. Cash any reissued check promptly — each is valid for only 90 days from its issue date.

Key Takeaway: This is one of the rare cases where a legitimate government settlement administrator’s website and process actually exists and is still active — verify you’re using the official cfpb-lexlaw.org domain before submitting any personal information.

Filing Deadline / Statute of Limitations

There is no new claim-filing deadline for consumers, since eligibility was determined by the CFPB and administrator from existing company records rather than a public claim form. However, each reissued check carries its own hard 90-day expiration deadline from its issue date, and consumers who believe they’re owed a payment should contact the administrator promptly rather than waiting.

Is It a Scam? What to Watch For

Given the size and public attention around this case, scam attempts referencing “Lexington Law refund” or “CFPB settlement” claims are a realistic risk. Legitimate communication about this case will:

• Reference the official administrator, JND Legal Administration, and the domain cfpb-lexlaw.org.
• Never ask you to pay a fee to receive your refund.
• Never ask for your full Social Security number or bank login credentials over unsolicited phone calls or emails.
• Match the case number 2:19-cv-00298-BSJ if you want to verify authenticity directly against the CFPB’s own website.

Other Related Lawsuits and Broader Context

Separately from this CFPB action, Lexington Law also faced a private Telephone Consumer Protection Act (TCPA) class action settlement in past years over unwanted calls or texts — a distinct legal matter from the CFPB’s billion-dollar enforcement case and resolved through its own, separate, smaller settlement process. The credit repair industry as a whole has faced increasing regulatory scrutiny following this case, given its scale and the resulting shutdown of two of the industry’s largest players.

Frequently Asked Questions

What is the Lexington Law lawsuit about?

The Lexington Law lawsuit refers to a CFPB enforcement action (Case No. 2:19-cv-00298-BSJ, D. Utah) alleging Lexington Law, CreditRepair.com, and their parent companies illegally charged upfront fees and used deceptive telemarketing to sell credit repair services, violating the Telemarketing Sales Rule. The case ended in a nearly $2.7 billion judgment in August 2023, and both companies subsequently filed for bankruptcy and shut down.

Who qualifies for a Lexington Law refund?

Consumers qualified if they paid Lexington Law or CreditRepair.com for services between March 8, 2016, and August 30, 2023, after being solicited via telemarketing, or between July 21, 2011, and August 30, 2023, if they were transferred to the companies by a deceptive marketing affiliate. Eligibility was determined automatically from company records rather than through a public application process.

How much money did people actually receive?

Payouts were calculated on a pro-rata basis according to how much each consumer had paid the companies, not as a flat amount. For reference, dividing the full $1.8 billion evenly among all 4.3 million eligible consumers would work out to roughly $419 per person, though actual individual payments varied based on each person’s payment history.

What happens if I never received or lost my refund check?

You can request a reissue through the official settlement administrator, JND Legal Administration, at cfpb-lexlaw.org, by emailing info@cfpb-lexlaw.org, or by calling 1-855-680-8991. Reissue runs occur roughly every two months, and each reissued check is valid for only 90 days from its issue date, so it’s important to act promptly once you receive a new check.

What is the current status of the Lexington Law case and refund process?

The underlying case is fully resolved, with final judgment entered August 30, 2023, and both companies now out of business following bankruptcy. The main refund distribution to 4.3 million consumers occurred between December 2024 and January 2025, and as of the most recent confirmed cycle, the administrator continues periodic reissue runs for consumers with lost, undelivered, or expired checks.

Claim Your Lexington Law Refund Before It’s Gone

The Lexington Law lawsuit is a case where the money is real, the payout has largely already happened, and what remains is making sure eligible consumers who missed their original check actually get paid.

If you used Lexington Law or CreditRepair.com’s services within the eligible windows and never received a check, don’t assume you’re out of luck — the reissue process remains active, and the administrator can look up your eligibility using your name and address.

Because each reissued check expires just 90 days after it’s sent, treat any reissue request as time-sensitive once it’s approved, and cash the check as soon as it arrives rather than setting it aside.

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Sources

• [CFPB v. Lexington Law and CreditRepair.com — Consumer Financial Protection Bureau](https://www.consumerfinance.gov/enforcement/payments-harmed-consumers/payments-by-case/lexlaw/)
• [CFPB Announces Return of $1.8 Billion in Illegal Junk Fees to 4.3 Million Americans Harmed in Massive Credit Repair Scheme — Consumer Financial Protection Bureau](https://www.consumerfinance.gov/archive/newsroom/cfpb-announces-return-of-1-8-billion-in-illegal-junk-fees-to-4-3-million-americans-harmed-in-massive-credit-repair-scheme/)
• [Progrexion Marketing, Inc.; PGX Holdings, Inc.; et al. enforcement action — Consumer Financial Protection Bureau](https://www.consumerfinance.gov/enforcement/actions/pgx-holdings-inc/)
• [CreditRepair.com and Lexington Law refund checks: What you need to know — Consumer Financial Protection Bureau](https://www.consumerfinance.gov/about-us/blog/creditrepaircom-and-lexington-law-refund-checks-what-you-need-to-know/)
• [More than 4 million people to share $1.8 billion in refunds, the CFPB says — CBS News](https://www.cbsnews.com/news/cfpb-credit-repair-lexington-law-1-8-billion-refund-check/)
• [$1.8B Payout Headed to Lexington Law, CreditRepair.com Customers in Historic CFPB Action — ClassAction.org](https://www.classaction.org/news/1.8b-payout-headed-to-lexington-law-creditrepair.com-customers-in-historic-cfpb-action)
• [Official settlement administrator site — cfpb-lexlaw.org](https://www.cfpb-lexlaw.org/)