Last reviewed: July 2026. This is a developing story; we update it as the case and the company’s status change.

If you searched “is Lexington Law shut down” or “is Lexington Law still in business,” you found a confusing picture: headlines about a multibillion-dollar federal action and a bankruptcy, next to a website that still asks you to sign up for a monthly plan. Both things are true at once. Here is a plain-English, fully sourced explainer of what actually happened, whether the company is still operating, whether you are owed a refund, and what any of it means for your own credit. Results vary from person to person, so we’ll stick to facts and to the rights every consumer already has under federal law.

Is Lexington Law still in business?

Short answer: partly. As of this update, the Lexington Law website is still live and still advertises paid monthly credit-repair plans. But the company behind the brand is a shell of what it was. Its parent, Progrexion (legally PGX Holdings), filed for Chapter 11 bankruptcy in June 2023, laid off roughly 900 employees, and saw its customer base fall from about 2.1 million in 2022 to roughly 130,000 afterward, according to court filings reported at the time. So the brand technically still exists and still sells services, but it is not the large-scale operation it was before the federal action. If you see “Lexington Law shut down” framed as a flat yes-or-no, that’s an oversimplification.

What did the CFPB action against Lexington Law actually find?

A federal court found that the company charged illegal upfront fees and used deceptive marketing. In March 2023, a U.S. District Court in Utah ruled that Progrexion and its brands — Lexington Law and CreditRepair.com — violated the federal Telemarketing Sales Rule by collecting advance fees for telemarketed credit-repair services, and violated the Consumer Financial Protection Act through deceptive advertising. On August 30, 2023, the parties entered a stipulated judgment that the Consumer Financial Protection Bureau (CFPB) describes as roughly $2.7 billion in consumer redress, plus civil penalties of $45.8 million against Progrexion Marketing and $18.4 million against the John C. Heath law firm (which does business as Lexington Law), and a 10-year ban on telemarketing credit-repair services. The full enforcement record is posted on the CFPB’s enforcement action page.

Two details matter for how you read the news. First, the core problem was the timing and marketing of the fees, not a claim that credit disputes themselves are illegal — disputing genuinely inaccurate information is a right protected by federal law. Second, this was a settlement/stipulated judgment, so the dollar figures reflect agreed redress, not a jury verdict.

Did Lexington Law go bankrupt?

Its parent company did. PGX Holdings/Progrexion filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware on June 4, 2023, listing a large liability load and more than 100,000 creditors. Reporting from that period tied the filing directly to a court-ordered change in how the company could bill: once it could no longer collect fees the old way, revenue dropped sharply, which drove the layoffs and the bankruptcy. So “Lexington Law went bankrupt” is best understood as “the parent company that ran Lexington Law entered Chapter 11 and shrank dramatically.” Chapter 11 is a reorganization process, not automatic liquidation, which is part of why a website and some operations can still exist.

Am I owed a refund from the $1.8 billion CFPB payout?

You might be — and if you are, you should never have to pay anyone to receive it. The CFPB announced it would return $1.8 billion to about 4.3 million people harmed by the credit-repair scheme — the largest distribution ever from the Bureau’s victims relief fund, per the CFPB’s official announcement. Payments began going out in late 2024 through an independent administrator. In general, eligible consumers included people who paid Lexington Law or CreditRepair.com after certain telemarketing or marketing-affiliate contact during the periods the CFPB defined (broadly, payments made from 2016 — and in some cases 2011 — through August 30, 2023).

Two safety points. First, eligible consumers generally did not need to apply or pay a fee — payments were sent automatically to those the CFPB identified. Second, watch for scams: the CFPB does not ask you to pay money or share sensitive account details to “release” a settlement payment. If someone contacts you demanding a fee to unlock a Lexington Law refund, treat it as fraud and report it. You can verify anything about the distribution directly through the CFPB link above rather than trusting a caller, text, or email.

Should I keep paying Lexington Law $139.95 a month?

That’s your decision, but make it knowing what the law requires and what a monthly plan can and can’t do. As of this update, Lexington Law’s own website still advertises monthly plans, with reporting citing a Premier-tier price around $139.95 per month (pricing can change, so confirm current terms directly before you enroll anywhere). Before you pay any credit-repair company, know two federal ground rules:

No illegal upfront fees. Under the Credit Repair Organizations Act (CROA), a credit-repair company cannot charge you before it has fully performed the services it promised. That rule was at the heart of the CFPB action.
No lawful promise to erase accurate information. No company — ours included — can lawfully promise to remove accurate, timely, and verifiable items from your credit reports, or guarantee a specific score increase. What a legitimate service can do is help you identify and dispute or challenge items you believe are inaccurate, incomplete, or unverifiable. Results vary based on your individual reports and what the bureaus and furnishers find.

If you’re weighing whether professional help is worth it at all, our plain-English guide on whether credit-repair companies are legitimate walks through the questions to ask before you sign anything.

Can I dispute credit report errors myself for free?

Yes — disputing errors is a free federal right, and you never have to pay to use it. The Fair Credit Reporting Act (FCRA) gives you the right to dispute incomplete or inaccurate information with each credit bureau and with the company that furnished the information. When you file a dispute, the credit-reporting company generally must investigate within 30 days of receiving it, and it has five business days after finishing to tell you the results; if you add relevant information during the investigation, the window can extend by up to 15 more days. If the information can’t be verified or is found to be wrong, the FCRA requires it to be corrected or deleted — that’s the law’s standard, not a guarantee about your specific case, and results vary.

The government explains the exact steps in two consumer-friendly places: the CFPB’s how to dispute an error page and the FTC’s disputing errors on your credit reports guide. If you’d rather work through it yourself, start with our step-by-step on how to dispute credit report errors and how to check your credit reports for free. Doing it yourself versus hiring help is a real trade-off — we lay out both honestly in fixing your credit yourself vs. hiring a professional.

What actually moves a credit score — so you know what’s worth paying for?

Accurate, on-time history and low balances do the heavy lifting; disputes only help when an item is genuinely wrong. According to FICO, a FICO® Score is built from five categories: payment history (about 35%), amounts owed and credit utilization (about 30%), length of credit history (about 15%), new credit (about 10%), and credit mix (about 10%). That breakdown is why two things matter most for most people: paying on time and keeping card balances low relative to your limits.

Disputing inaccurate or unverifiable items can help if those items are actually wrong — it will not erase accurate negative information that’s still within the reporting time limits. (Most negative items can legally remain on a report for up to seven years, and certain bankruptcies up to ten; see our guide on how long negative items stay on your credit report.) That distinction is exactly what separates lawful credit help from the marketing the CFPB penalized. The payoff for getting it right is concrete: stronger, accurate credit can mean a lower rate when you borrow. Freddie Mac’s Primary Mortgage Market Survey tracks the average mortgage rates lenders offer, and better-qualified borrowers generally see better pricing — which matters for the nearly two-thirds of U.S. households that own their home, per the U.S. Census Bureau.

How is Score Pros different from what the CFPB penalized?

We’re a done-for-you credit-consulting company that operates within the CROA and FCRA — and we say plainly what we can and can’t do. Score Pros reviews your credit reports with you, helps you challenge inaccurate, incomplete, or unverifiable items, and builds a step-by-step plan for the accurate, positive habits that actually move scores. We don’t promise to remove accurate information, we don’t guarantee a specific score jump, and we don’t make “instant results” claims — results vary, and honest work takes time. Founded by Gabe David and based in Irvine, California, Score Pros serves clients nationwide (we do not currently serve Georgia).

If you want a human to walk your reports with you, you can see how it works and compare our service options — no pressure, and no upfront charge for services we haven’t performed. If you’d rather go it alone, the free government tools above are the right place to start, and that’s a genuinely good outcome too.

Sources

This article is educational and is not legal, financial, or credit advice. Federal credit rights are described in general terms; your situation may differ, and results vary. Score Pros is a credit-consulting company that operates in compliance with the Credit Repair Organizations Act and does not charge for services before they are performed. For your specific situation, consult the official CFPB and FTC resources linked above.

Frequently asked questions

Is Lexington Law shut down?

Not entirely. As of mid-2026, the Lexington Law website is still live and still sells monthly plans, but its parent company, Progrexion (PGX Holdings), filed Chapter 11 bankruptcy in June 2023, laid off about 900 employees, and shrank dramatically after a federal court and the CFPB found it charged illegal upfront fees and used deceptive marketing. So the brand still exists but is far smaller than before.

Do I have to do anything to get the $1.8 billion CFPB refund?

Generally no. The CFPB is returning $1.8 billion to about 4.3 million people it identified as harmed, and eligible consumers typically did not need to apply or pay a fee to receive a payment. Be alert for scams: the CFPB never asks you to pay money or share sensitive account details to release a settlement payment. Verify anything through the CFPB's official announcement rather than a caller, text, or email.

Is it still legal for Lexington Law to charge me a monthly fee?

A credit-repair company can charge for work it has actually performed, but under the Credit Repair Organizations Act (CROA) it cannot lawfully charge you before it fully performs the services it promised. Collecting illegal advance fees was central to the CFPB action. Before enrolling anywhere, confirm current pricing and terms directly, and make sure you are not being charged for services that have not yet been performed.

Can I dispute credit report errors myself without paying anyone?

Yes. The Fair Credit Reporting Act (FCRA) gives you the free right to dispute incomplete or inaccurate information with each credit bureau and with the company that furnished it. The credit-reporting company generally must investigate within 30 days and notify you of the results within five business days after finishing. You never have to pay to exercise this right.

Will disputing remove my late payments or collections?

Only if those items are actually inaccurate, incomplete, or unverifiable. If information can't be verified or is found to be wrong, the FCRA requires it to be corrected or deleted, but accurate negative items can legally stay on your report for up to seven years (and some bankruptcies up to ten). No one can lawfully promise to erase accurate, timely information, and results vary from person to person.

How is Score Pros different from the company the CFPB penalized?

Score Pros is a done-for-you credit-consulting company that operates within the CROA and FCRA. We review your reports with you, help you challenge inaccurate or unverifiable items, and build a plan for the accurate habits that move scores. We don't charge for services before they're performed, we don't promise to remove accurate information, and we don't guarantee a specific score increase. Results vary. We serve clients nationwide except Georgia.

Sources

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Is Lexington Law Still in Business? What the CFPB Action Means for You