$2-million settlement ends accusations that L.A. credit-repair firms misled consumers

Credit-repair services promise to help consumers fix their credit scores, but there’s only so much they can do. They can help clear up inaccurate or outdated information on a consumer’s credit report, but they can’t erase legitimate dings.

But the Consumer Financial Protection Bureau alleged that a group of related L.A. credit-repair companies didn’t make that clear and misled consumers about how much their credit scores might improve.

On Tuesday, the companies’ former owners and a business associate agreed to pay $2 million to settle the CFPB’s allegations, which also included claims that the companies improperly charged fees before showing that credit-repair work had been done.

The bureau alleged the bad practices took place at a handful of firms — including Commercial Credit Consultants, Accurise, Park View Legal and Prime Credit Consultants — from 2009 to 2014, the year some of the companies were sold to a private equity firm.

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