Lexington Law Wins Again Against Misguided Debt Collector Attacks |
SALT LAKE CITY, December 9, 2021 / PRNewswire / – Recently, a federal jury of Kansas dismissed a fraud lawsuit brought by Ad Astra Recovery Services, a debt collector and credit provider, against Lexington Law, Progrexion and several attorneys and credit repair professionals affiliated with Lexington and Progrexion.
Ad Astra’s case centered on letters that Lexington prepared and submitted on behalf of its clients to credit reporting agencies and vendors (such as Ad Astra) regarding potential errors and other reporting issues on the consumer’s credit report. Ad Astra, the debt collection arm of a conglomerate that offers short-term, high-interest loans, argued that Lexington had committed “fraud” because these letters were signed with the consumer’s electronic signature and were not specifically marked as originating from Lexington. Progrexion was included in the lawsuit because it is a long-standing provider of synergistic services to the benefit of Lexington customers, including intellectual property and customer interfaces.
It is now the second federal court to dismiss cynical and unfounded allegations against Lexington, the leading provider of credit repair services in the United States. Last year, a federal court of Texas rejected the same arguments of two debt collectors, CBE Group and RGS Financial. The ruling was upheld on appeal by the Fifth Circuit Court of Appeals earlier this year.
“This victory is an important victory for consumers and a huge setback for the debt collection industry’s ongoing campaign to cut consumers’ access to affordable credit repair services offered by experienced legal professionals and professionals. other consumer advocates. unfounded accusations against Lexington and claimed that Lexington the business model is appropriate and fully complies with all relevant laws. Consumers have the right to an accurate, fair and substantiated credit report. This victory means that Lexington will continue to be able to provide high quality advocacy and advice at extremely affordable rates, ensuring that millions of consumers can get the help they need, ”said lead counsel for Lexington Law, John C. Heath.
From the start, Ad Astra’s goal was clear: to suffocate Lexington convenient and affordable services, which have enabled many more Americans to dispute errors and other problems on their credit reports, and thus avoid its “burden” of demonstrating that its business lines are fair, accurate and justified.
Federal law requires providers like Ad Astra to respond to non-frivolous consumer disputes by reviewing the business line to ensure it is correct and justified. However, as Ad Astra repeatedly pointed out in the litigation, the law does not extend this requirement to disputed correspondence submitted, or prepared on behalf of the consumer, by a suspected credit repair agency. Unscrupulous suppliers use this loophole as a justification for ignoring, without consideration or explanation, correspondence sent on behalf of a consumer. In addition to Ad Astra and CBE In some cases, debt collection industry lobbyists are now pushing bills in different states that would require credit repair agencies and other third parties to “mark” correspondence they prepare on behalf of consumers. —Probably to allow providers to penalize more consumers for turning to asking for help.
The case is Ad Astra Recovery Serv., Inc. v. Heath et al., No. 6: 18-cv-01145, D. Kan.
SOURCE Lexington Law