Federal Lawsuits Against Debt Relief Companies
An automatically updated record of federal court cases involving debt relief companies and debt buyers — useful for consumers evaluating providers, researching companies contacting them about a debt, and for companies learning from industry patterns.
Important: All case information is sourced directly from court documents and reported as alleged. These are allegations, not findings of fact. Every defendant is presumed innocent and has the right to contest the claims in court.
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Quick Answer: Donald Obryon sued Resurgent Capital Services, LP and LVNV Funding, LLC in the United States District Court for the Eastern District of Pennsylvania under the Fair Debt Collection Practices Act (FDCPA). He alleges that the defendants violated the FDCPA by communicating directly with him regarding a debt after being notified that he was represented by an attorney and had requested that all communications cease. Obryon seeks damages for the alleged violations and relief from the court to prevent further unlawful communications. This is a legal filing containing allegations; no finding of liability has been made.
Quick Answer: Bridget Marie Hess sued Affirm, Inc. and Citibank, N.A. in the U.S. District Court for the Western District of Wisconsin, alleging violations of the Fair Credit Reporting Act, 15 U.S.C. § 1681s-2(b), for failing to conduct a reasonable investigation and correct four fraudulent accounts — three Affirm accounts and one Citibank account — opened in her name after a 2023 data-breach-linked identity theft, despite ACDV responses showing an address in a different state and a name that did not perfectly match hers. Hess seeks actual damages, statutory damages, punitive damages, and reasonable attorneys' fees and costs. This is a legal filing containing allegations; no finding of liability has been made.
Quick Answer: Michael Aiken, individually and on behalf of a proposed nationwide class, sued Credit Freedom and Restoration Corporation in the U.S. District Court for the Eastern District of Pennsylvania (Case No. 2:26-cv-01782) under the Class Action Fairness Act, alleging that Credit Freedom failed to secure customers’ personal information — including driver’s license numbers, Social Security numbers, plaintext credit card data and card images, utility bills, and credit reports — before an unauthorized party accessed its CRM software and exfiltrated the data of approximately 30,000 individuals in a data breach on or about March 12, 2026. The complaint alleges claims for negligence, breach of implied contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, and declaratory judgment, and seeks class certification, injunctive relief, damages, restitution, credit monitoring, and attorney’s fees. This is a legal filing containing allegations; no finding of liability has been made.
Quick Answer: On February 27, 2026, Joshua Cook filed a class action lawsuit against SoFi Technologies, Inc. in the Northern District of California (Case No. 3:26-cv-1722), alleging the company failed to protect customers’ private information — including names, dates of birth, addresses, email addresses, phone numbers, and employment and education information — from a data breach. The complaint asserts seven counts including negligence, breach of contract, and violation of the Illinois Consumer Fraud Act. The class seeks monetary damages, lifetime credit monitoring funded by SoFi, and injunctive relief.
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