Progrexion Applauds Court Decision Protecting the Hardest Working Americans™

SALT LAKE CITY, Dec. 9, 2021 /PRNewswire/ -- At Progrexion, we are committed to fighting for the Hardest Working Americans^TM.  As part of that work, we have a long-running relationship with Lexington Law, supporting Lexington's attorneys and paralegals as they deliver high quality client service by providing HR, technology, and other support services to the firm.  

Last month, a federal jury in Kansas rejected a "fraud" lawsuit brought by Ad Astra Recovery Services, a debt collector and credit furnisher, against Progrexion and Lexington Law. As the case focused on letters that Lexington prepared and submitted on its clients' behalf to credit reporting agencies and furnishers, Progrexion was only included because of our service and support partnership with Lexington.   

This is now the second federal court to reject cynical and unfounded claims of fraud against Lexington because letters that Lexington prepared on behalf of consumers were signed with the consumer's electronic signature and were not specifically marked as coming from Lexington. Last year, a federal court in Texas rejected the very same arguments from two debt collectors, CBE Group and RGS Financial. That decision was upheld on appeal by the Fifth Circuit Court of Appeals earlier this year.   

"As you know, I believe strongly that Americans have the right to seek help when repairing their credit. This jury victory ensures that consumers will continue to be able to seek the help they need. It is well-documented that many find the dispute process difficult and time-consuming. In fact, according to an FTC study, more than half of all consumer-initiated credit report disputes are dropped before completion. Credit repair organizations are a free-market solution to a dysfunctional system, giving millions of Americans the opportunity to consult with and be represented by advocates. Instead of fighting to limit consumers' access to advocates and experts, furnishers should focus on reducing errors in the credit reporting process," said Mike DeVico, Progrexion CEO. 

After being soundly defeated in court, the debt collection industry will likely turn to pushing legislation that would make it easier for furnishers to ignore correspondence drafted or submitted with assistance from credit repair organizations or other third parties. We at Progrexion are determined to fight back against these anti-consumer bills and lawsuits and ensure that Americans have access to the help they need. As CFPB Director Chopra recently said in testimony to Congress:  

"Increasingly, households and businesses have no place to turn to when they need help, especially when they face errors and problems in their financial lives. In markets like credit reporting, consumers are not the customer and lack the leverage to get problems fixed in a timely manner. The inability to cut through red tape and get help in one's financial life can be a major obstacle when seeking a job or when applying for credit." 

SOURCE Progrexion