According to consumers, Yahoo! has violated the federal Credit Repair Organizations Act as well as state common law through its offer of credit repair services through its website. The consumers allege that Yahoo! offers a service, known as "Yahoo! Credit Manager" through its yahoo.com website. Yahoo! allegedly advertises that this service would provide consumers with "personalized tips and analysis" on how to improve their credit score and would "learn what factors may influence [the credit] score, [including] what issues can positively and negatively affect [their] credit standing." In addition, Yahoo! allegedly claimed that members would receive a credit report with a "personalized credit score analysis". With this analysis, Yahoo! Credit Manager members are also supposed to receive an explanation of what the "credit score means" in general and as applied specifically to the member, factors that increased or decreased the credit score, and ways the members could improve their credit score.

According to consumers, Yahoo! requires payment in advance of $79.95 for membership in their plan. Consumers claim that this requirement of payment in advance is in direct contravention of the federal Credit Repair Organizations Act, which states that "no credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit organization agreed to perform for any consumers before such service is fully performed." Additionally, the consumers claim that Yahoo! further violated the act by not providing them with a written contract as required by the Act. Under the Act contracts must provide the "terms and conditions of payment", a "full and detailed description of the services to be performed" including "all guarantees for performance, an estimate of the date by which the performance of services will be complete, or the length of the period necessary to perform such services." The Act further requires a conspicuous statement in bold face in close proximity to the space reserve for the consumer's signature which informs the consumer of his or her right to cancel the contract without penalty or obligation at anytime before midnight on the 3rd business day after the date on which the contract was signed by the consumer. According to consumers, Yahoo! failed to provide any form of contract and failed to provide any of the required statutory information under the Act. This, according to the consumers, was done with fraudulent intent and in gross violation of federal law. Finally, the consumers allege that any and all monies acquired by Yahoo! through this alleged scheme should be considered unjust enrichment as well as the revenue of a conspiracy to defraud U.S. consumers.