The action alleges that named plaintiff Jeffrey Burton engaged QCS to assist him in repairing his credit. QCS allegedly advised Burton that its fee was $499 and that he could choose to pay the full fee up front prior to the rendering of any service, or could choose to pay in installments with a portion of the fee paid up front prior to the rendering of any service. Burton allegedly chose to pay the fee in installments, and QCS advised him that $140 of that fee was required to be paid in advance. Burton allegedly sent a cashier's check in the amount of $140 to QCS at the time he signed up for services, prior to any action on the part of QCS. The lawsuit alleges that this is typically the way QCS does business.

Under the CROA, credit repair organizations may not receive payment before any promised service is "fully performed." The CROA prohibits a variety of false and misleading statements, as well as fraud by credit repair organizations. Services must be performed under a written contract, which must include a detailed description of the services and contract performance time. Credit repair organizations must provide the consumer with a separate written disclosure statement describing the consumer's rights before entering into the contract.

Consumers can sue to recover the greater of the amount paid or actual damages, punitive damages, costs, and attorney's fees for violations of the CROA. The states and the FTC may also enforce the CROA. The exact amount of any punitive damages is left to the determination of the court, bounded by the rule that punitive damages should be considered on behalf of each class member, without regard to any minimum individual recovery.