This article is for educational purposes only and is not legal or financial advice. It contains no affiliate links — Lexington Law’s current operating status is genuinely unclear, and we could not verify a legitimate current affiliate relationship. Consult an attorney or the CFPB directly if you believe you’re owed a refund.

What Happened to Lexington Law? The $2.7 Billion CFPB Judgment, Explained

If you’ve searched for Lexington Law recently, you’ve likely run into conflicting information — some sources describe it as a currently operating credit repair company, others say it shut down entirely. Here’s what’s actually confirmed, and why the confusion exists.

The Confirmed Facts

Lexington Law was, for over a decade, one of the largest credit repair companies in the country, operated by PGX Holdings (along with related entities including Progrexion Marketing and Progrexion Teleservices, and its legal operating entity, John C. Heath, Attorney at Law, P.C.). Combined, these entities reported around $388 million in annual revenue in 2022, serving more than 4 million customers.

In August 2023, a federal court entered a $2.7 billion judgment against these companies following a joint action by the Consumer Financial Protection Bureau (CFPB) and the FTC. The case centered on a specific violation: charging customers advance fees — collecting payment before actually performing (or completing) credit repair work — which directly violates the FTC’s Telemarketing Sales Rule.

→ Related: What Is Debt Settlement? How It Actually Works(#115) — covers the same Telemarketing Sales Rule advance-fee protection as it applies to debt settlement specifically.

What Happened Next

Following the judgment, PGX Holdings filed for Chapter 11 bankruptcy, shutting down roughly 80% of its operations and laying off approximately 900 employees. The companies were also barred from telemarketing credit repair services for 10 years — a ban running through roughly 2033. The CFPB has been distributing $1.8 billion of the judgment back to affected consumers from its Civil Penalty Fund, with payouts continuing into 2026. Typical individual payouts have reportedly ranged up to several hundred dollars, calculated as a pro-rata share of what each consumer paid.

If you paid Lexington Law or CreditRepair.com — whether through a telemarketing call between March 2016 and August 2023, or through an affiliate marketing referral between 2011 and 2023 — you may be eligible for a refund. Checking directly with the CFPB’s official consumer relief resources is the most reliable way to confirm your eligibility and status.

Is Lexington Law Still Operating Today?

This is where genuinely conflicting information exists, even in very recent reporting:

• Some sources report that the “Lexington Law” tradename was purchased out of bankruptcy by a new legal entity, Oquirrh Mountain Law Group, P.C., based in North Salt Lake, Utah, which reportedly continues operating a credit repair service under the same name — with a currently published rate of $139.95/month, but with a BBB “Not Rated” status and a reported 676 complaints in the CFPB database.
• Other, equally recent sources state that Lexington Law is not currently operating at all — that it closed in August 2023, has not relaunched, and that its old web domains now redirect to refund and warning pages.

We were not able to resolve this discrepancy with confidence. Given that, and given the severity of the underlying history, we’re not treating “Lexington Law” as a company to compare or recommend until this can be verified directly and conclusively.

Why This Matters If You’re Researching Credit Repair Services Generally

This case is genuinely instructive beyond just Lexington Law specifically — it’s a real-world example of exactly the kind of violation to watch for with any credit repair or debt relief company: being asked to pay before services are actually performed. The same Telemarketing Sales Rule protection that was violated here applies industry-wide.

→ Related: How Credit Repair Companies Actually Remove Negative Items(#121), Is Debt Settlement a Scam?(#119)**

What to Do If You’re Currently Paying a “Lexington Law” Subscription

Given the genuine uncertainty about which entity (if any) is currently billing under this name, and its history, we’d recommend:

1. Confirming exactly which legal entity is charging you, by checking your billing statement or engagement agreement directly
2. Verifying that entity’s current BBB status and CFPB complaint record independently
3. Considering established alternatives with a clearer, more consistent operating history if you have concerns

Frequently Asked Questions

Can I still get a refund related to the CFPB judgment? Potentially, if you paid Lexington Law or CreditRepair.com during the eligible periods described above. Check directly with the CFPB’s official consumer relief information rather than a third-party site, to confirm current status and avoid scams targeting people seeking refunds.

Was this Lexington Law’s first legal trouble? The 2023 case was historically significant in scale, but credit repair companies broadly operate under close regulatory scrutiny given the industry’s history of predatory practices — this wasn’t an isolated first-time issue for the space generally.

Is every credit repair company at risk of something like this? No — this specific violation (charging before performing services) is a well-defined, specific rule. Companies that clearly comply with the “no payment before results” structure aren’t exposed to this particular issue.

Should I trust a company currently using the “Lexington Law” name? Given the genuine uncertainty we found about who currently operates under this name and its recent history, we’d recommend treating any company using this name with extra caution and verifying its current legal status independently before enrolling.

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That’s the confirmed history behind one of the largest consumer protection judgments in the credit repair industry — and an honest accounting of what we could, and couldn’t, verify about where things stand today. Thanks for reading.