If you are considering signing up for Lexington Law’s credit repair service in 2026, here is the blunt version of what you need to know: the company now charges a flat $139.95 per month, your first payment hits within 5 to 15 days of signing up for initial work completed, and the entity operating under the Lexington Law name today is not the same company that existed a few years ago. The original Lexington Law was hit with a $2.7 billion judgment by the Consumer Financial Protection Bureau in 2023 for collecting illegal advance fees from over 4 million consumers. That entity filed for bankruptcy, laid off 900 employees, and shut down 80 percent of its operations. The tradename was purchased and relaunched under Oquirrh Mountain Law Group, P.C., based in North Salt Lake, Utah.
So when people say they didn’t expect certain fees, it is worth understanding the full history of how this company has handled billing. The enrollment fees that catch people off guard are not hidden in fine print so much as they are easy to miss during a sales call. Lexington Law advertises $0 upfront at sign-up, which is technically accurate, but the first charge of $139.95 lands less than two weeks later. For someone who signed up expecting to review results before paying, that timeline can feel like a bait and switch. This article breaks down exactly how the billing works, what federal regulators have already found about these practices, the complaint trends from real consumers, and what you should weigh carefully before handing over your payment information.
Table of Contents
- What Are the Enrollment Fees People Say They Didn’t Expect from Lexington Law in 2026?
- How Does Lexington Law’s Monthly Billing Actually Work, and When Should You Be Cautious?
- The $2.7 Billion CFPB Judgment and What It Means for Today’s Customers
- How to Compare Lexington Law’s Costs Against Doing It Yourself
- Consumer Complaints Are Climbing and the Ratings Are Dire
- What Federal Law Actually Says About Credit Repair Fees
- What to Watch for Going Forward in 2026 and Beyond
- Conclusion
- Frequently Asked Questions
What Are the Enrollment Fees People Say They Didn’t Expect from Lexington Law in 2026?
The most common surprise is the gap between “$0 upfront” and what happens shortly after. When you sign up with Lexington Law, you will not be charged at the moment of enrollment. But within 5 to 15 days, the company bills your first monthly payment of $139.95 for what it describes as initial work completed on your file. For people who assumed they would have weeks to evaluate the service or see some kind of progress report before being charged, that first bill can land before they have had any meaningful interaction with a paralegal. This is a single-tier plan now. Previously, Lexington Law had three pricing tiers with “first work fees” ranging from $89.95 to $129.95, charged in that same early window.
Those tiered advance fees were the central issue in the CFPB’s enforcement action. The confusion is compounded by what happens if your payment method fails. Lexington Law charges a late fee of up to $19.95 for declined or failed payments. So a consumer who thought they were in a free trial period might see both the $139.95 charge and a $19.95 late fee within the first month if their card was declined on the initial attempt. Maryland residents should also be aware that billing works differently in that state due to specific regulations, though Lexington Law does not spell out those differences prominently on its website. If you are in Maryland, ask for a written breakdown of your billing schedule before agreeing to anything.
How Does Lexington Law’s Monthly Billing Actually Work, and When Should You Be Cautious?
Once you are past the initial charge, Lexington Law bills $139.95 each month on a recurring basis. There is no long-term contract, and the company’s own FAQ states you can cancel at any time. The service includes credit bureau disputes, creditor interventions, and access to a client dashboard where you can track the status of items being challenged on your credit reports. On paper, this is straightforward subscription billing. However, if you assume canceling is as easy as the sign-up process, consumer complaints suggest otherwise.
Multiple complaints filed in 2025 through ConsumerAffairs and Trustpilot describe customers calling to cancel, being placed on extended holds, and then discovering they were billed again the following month. Some report needing to call multiple times before the cancellation actually went through. The CFPB has issued a consumer advisory specifically reminding people that they have the legal right to cancel credit repair services with no penalty under the Credit Repair Organizations Act. If you do sign up, document every cancellation request in writing, including the date, the name of the representative, and a confirmation number if one is provided. A paper trail is your best defense against being billed after you have asked to stop the service.
The $2.7 Billion CFPB Judgment and What It Means for Today’s Customers
The backstory matters because it directly shaped what Lexington Law looks like today. In March 2023, a federal district court ruled that Lexington Law and its sister company CreditRepair.com violated the Telemarketing Sales Rule by collecting illegal advance fees. The CFPB found the companies had collected $2.66 billion in these fees, charging consumers before completing any work. The judgment totaled $2.7 billion, and between December 2024 and January 2025, approximately $1.8 billion in refunds were distributed to over 4.3 million affected consumers. The companies were also hit with a 10-year ban on telemarketing for credit repair services. The predecessor company, originally operating as John C. Heath, Attorney at Law, PLLC, filed Chapter 11 bankruptcy.
It laid off roughly 900 employees and shut down the majority of its operations. The Lexington Law tradename was then acquired and relaunched under Oquirrh Mountain Law Group, P.C. This is a critical distinction: the Lexington Law you see advertised in 2026 is legally a different entity from the one that was penalized. Whether the new entity operates differently in practice is still being tested. A new class action, Sanders v. Oquirrh Mountain Law Group, P.C., was filed in November 2025 alleging violations of the Credit Repair Organizations Act by the current operator. As of February 2026, there were 865 federal cases naming Lexington Law, including 537 class actions.
How to Compare Lexington Law’s Costs Against Doing It Yourself
At $139.95 per month, Lexington Law’s service costs roughly $1,680 per year if you stay enrolled for 12 months. Credit repair companies typically suggest staying on for six months to a year to see meaningful results. That puts your expected spend somewhere between $840 and $1,680. The question worth asking is what that money buys you that you cannot do yourself for free. Under federal law, you have the right to dispute inaccurate items on your credit reports directly with the three major bureaus, Equifax, Experian, and TransUnion, at no cost.
You can pull your credit reports for free through AnnualCreditReport.com, identify errors or outdated information, and file disputes online or by mail. The bureaus are required to investigate within 30 days. Credit repair companies essentially do this same dispute process on your behalf, sometimes with more aggressive follow-up on creditor interventions. For someone with a handful of clear-cut errors, the DIY route is significantly cheaper and not particularly complicated. Where a service might add value is if you have a complex file with dozens of negative items across multiple bureaus and genuinely do not have the time or confidence to manage the dispute process yourself. But even then, nonprofit credit counseling agencies approved by the Department of Justice offer free or low-cost help without the regulatory baggage that follows Lexington Law.
Consumer Complaints Are Climbing and the Ratings Are Dire
The numbers paint a troubling picture for anyone evaluating Lexington Law in 2026. The company has accumulated 692 complaints with the CFPB as of February 2026. More concerning than the total is the trajectory: complaints spiked 219 percent from 69 in 2023 to 220 in 2024, and the 2025 pace held at 215 complaints. The top categories break down as services not delivered at 17.3 percent, upfront or unexpected fees at 14.6 percent, and outright fraud or scam allegations at 12.9 percent. Third-party review platforms tell a similar story.
The Better Business Bureau lists Lexington Law as Not Rated and Not Accredited, with 140 complaints closed in the last three years and an average customer review of 1.12 out of 5 stars across 68 reviews. The BBB profile was listed as “under review” as of February 2026. On Trustpilot, the company holds a 2.3 out of 5 stars. On Yelp, it sits at 1.7 out of 5 stars across 834 reviews. These are not the kind of numbers that suggest a company has turned the page after a multibillion-dollar federal enforcement action. If a company’s own customers are still overwhelmingly reporting dissatisfaction after a relaunch under new ownership, that is a data point you should take seriously before signing up.
What Federal Law Actually Says About Credit Repair Fees
Two pieces of federal law are directly relevant here. The Credit Repair Organizations Act prohibits credit repair companies from charging fees before services are fully performed. The Telemarketing Sales Rule prohibits advance fees for credit repair services sold via telemarketing. These are the laws that the CFPB found the original Lexington Law entity violated to the tune of $2.66 billion.
The current entity’s billing structure, charging within 5 to 15 days for “initial work completed,” appears designed to thread the needle of these requirements by characterizing the early charge as payment for work already done rather than an advance fee. Whether that characterization holds up is part of what the new Sanders class action is testing in court. For consumers, the practical takeaway is this: if you sign up for any credit repair service and are charged before you have received a detailed accounting of specific work completed on your behalf, that charge may violate federal law. You have the right to request documentation of exactly what was done before any payment is collected, and you have the right to cancel without penalty at any time.
What to Watch for Going Forward in 2026 and Beyond
The Lexington Law situation is still developing. The Sanders v. Oquirrh Mountain Law Group lawsuit filed in November 2025 could result in additional restrictions or penalties on the current operating entity. The 10-year telemarketing ban on the predecessor companies is still in effect, which limits how the brand can market its services.
Meanwhile, the CFPB’s enforcement posture toward credit repair companies more broadly has intensified, making it likely that any billing practices that push legal boundaries will face scrutiny. If you are watching this space because you are trying to improve your credit, the most important thing to understand is that no credit repair company can do anything you cannot legally do yourself. The dispute process exists for consumers to use directly. What you are paying for with a service like Lexington Law is convenience and someone else’s time, and you need to decide whether $139.95 a month is worth it given the company’s track record, the ongoing litigation, and the consumer complaint trends that show no signs of slowing down.
Conclusion
Lexington Law in 2026 is a brand name with significant baggage operating under a new legal entity. The $139.95 monthly fee is not outrageous compared to other credit repair services, but the pattern of consumer complaints about unexpected early charges, difficulty canceling, and services not being delivered should give anyone serious pause. The $2.7 billion CFPB judgment, the bankruptcy of the predecessor company, the $1.8 billion in consumer refunds, and a fresh class action lawsuit are not ancient history. They are the immediate context in which this company is asking for your credit card number.
Before signing up, exhaust your free options first. Pull your credit reports, identify the specific items dragging down your scores, and file disputes directly with the bureaus. If you still want professional help, look into nonprofit credit counseling agencies that carry HUD or DOJ approval. If you do decide to use Lexington Law or any paid credit repair service, get the billing terms in writing, document every interaction, set calendar reminders for charge dates, and know that you can cancel at any time under federal law regardless of what a phone representative might tell you.
Frequently Asked Questions
Is the Lexington Law operating in 2026 the same company that was fined by the CFPB?
No. The original entity, John C. Heath, Attorney at Law, PLLC, filed for bankruptcy. The Lexington Law tradename was purchased and is now operated by Oquirrh Mountain Law Group, P.C., based in North Salt Lake, Utah. However, the brand continuity means the new entity inherits the reputation and is already facing its own class action lawsuit filed in November 2025.
Does Lexington Law charge an upfront enrollment fee?
The company advertises $0 at sign-up, but your first payment of $139.95 is charged within 5 to 15 days of enrollment for initial work completed. Many consumers have reported this felt like an unexpected charge because they assumed there would be a longer evaluation period before billing began.
Can I cancel Lexington Law at any time?
Yes. There is no long-term contract, and federal law under the Credit Repair Organizations Act guarantees your right to cancel without penalty. However, multiple consumer complaints describe difficulty actually getting cancellations processed, including extended hold times and continued billing after cancellation requests. Document every cancellation attempt in writing.
How much did consumers receive in CFPB refunds?
Approximately $1.8 billion was distributed to over 4.3 million affected consumers between December 2024 and January 2025 as part of the settlement related to the $2.7 billion judgment.
Can I dispute credit report errors myself for free?
Yes. Under federal law, you can dispute inaccurate, incomplete, or outdated information on your credit reports directly with Equifax, Experian, and TransUnion at no cost. You can access your reports for free at AnnualCreditReport.com. The bureaus must investigate disputes within 30 days.
What is the new lawsuit against Lexington Law about?
Sanders v. Oquirrh Mountain Law Group, P.C., filed in November 2025, alleges that the current operating entity is violating the Credit Repair Organizations Act. This case is separate from the earlier CFPB enforcement action and targets the new company specifically.
