Customers of Burlington Financial Group to Receive $30 Million in Payments as Victims of Deceptive Marketing

Credit repair company illegally took upfront payments, failed to improve consumer credit situations

Consumers who were victims of a debt-relief and credit repair scheme operated by Burlington Financial Group are receiving a portion of $30 million in compensation as a refund for fees paid to the company.

An investigation by the Consumer Financial Protection Bureau (CFPB) found that the company illegally took upfront payments for its services in violation of Telemarketing Sales Rules and further found that Burlington failed to improve consumer credit or debt as it advertised.

The CFPB’s investigation also found that the company encouraged its customers to stop paying their debts, thereby causing customers to suffer additional consequences, such as collection lawsuits and damaged credit scores. Meanwhile, for its services, the company charged its customers upfront fees of 40% of the debt amount owed, with an average cost of $21,000 per customer or $552 in monthly payments.

In 2021, when the initial complaint was filed, the CFPB described the situation this way:

“For more than three years, Burlington Financial used deceptive telemarketing tactics to defraud vulnerable people into believing the company could eliminate their credit-card debts and improve their credit scores,” said CFPB Acting Director Dave Uejio based on the allegations in the Bureau’s complaint. “We will continue to investigate and seek justice for victims of companies that lie, cheat, and steal from people who they claim to be helping.”

Now that the judgment against Burlington has been entered, consumers are beginning to receive payments from the CFPB's victim compensation fund. A total of $30.4 million has been set aside to refund victims of Burlington.

Burlington Financial Group and its owners have been permanently banned from the credit repair and debt relief industries.

Photo byGiorgio TrovatoonUnsplash