A couple of days after the Federal Trade Commission handed out penalties associated with credit repair, the Consumer Financial Protection Bureau (CFPB) took similar actions involving the same topic last week, too.

The CFPB filed a proposed order to resolve its lawsuit against Credit Repair Cloud and CEO Daniel Rosen for providing substantial assistance or support to credit repair businesses that charge illegal advance fees to consumers.

Officials said the proposed order — if entered by the court — would impose a $2 million civil penalty against Rosen and a $1 million civil penalty against Credit Repair Cloud.

The order would also require the company and Rosen to take steps to ensure credit repair companies using Credit Repair Cloud stop charging consumers illegal advance fees.

The CFPB recapped Credit Repair Cloud is a California-based corporation founded by Rosen. Since 2013, the bureau said Credit Repair Cloud has sold software and other tools to help others start and operate credit repair businesses.

Officials explained a credit repair business provides consumers with goods or services that purport to remove derogatory information from credit reports or otherwise improve a person’s credit history, credit record, or credit rating.

The CFPB pointed out that credit repair companies that use telemarketing are covered by the Telemarketing Sale Rule, which prohibits charging fees until the company has provided that consumer with a credit report that shows the promised results and that was issued more than six months after such results were achieved.

The bureau alleged that Credit Repair Cloud and Rosen provided “substantial” assistance to credit repair companies that use telemarketing to reach consumers and charge illegal advance fees by providing users with a system that, among other things, generated and tracked disputes and integrated a billing system, and provided training, marketing tools, and model websites.

The CFPB also alleged that Rosen was individually liable for Credit Repair Cloud’s violations because he controlled Credit Repair Cloud, he participated in its acts of substantial assistance, and he knew or recklessly disregarded that they were taking place.

Officials indicated Rosen’s acts of “substantial” assistance included, among other things, training credit repair companies on the Credit Repair Cloud’s system, providing sample scripts, and offering advice on how and when to collect fees from consumers.

Under the Consumer Financial Protection Act, the CFPB said it has the authority to take action against persons violating consumer financial protection laws, including the Telemarketing Sales Rule.

If entered by the court, the proposed order would require the defendants to:

—Pay $3 million in civil penalties: Rosen would pay a $2 million civil money penalty and Credit Repair Cloud would pay a $1 million civil penalty, both of which would be deposited into the CFPB’s victims relief fund, called the Civil Penalty Fund.

—Stop assisting companies with illegally charging advance fees: The order would permanently bar Credit Repair Cloud and Rosen from providing substantial assistance to any companies that use telemarketing to sell credit repair services and that charge advance fees. Credit Repair Cloud and Rosen would also be required to delete from their tools and services any language related to telemarketing and charging monthly fees for credit repair services.

—Notify companies using its tools and services that they cannot charge illegal upfront fees and monitor whether companies are complying: Credit Repair Cloud and Rosen would be required to send a notice to all companies that use Credit Repair Cloud that provides specific examples of telemarketing and advance fees that are unlawful. They also would be required to monitor whether Credit Repair Cloud’s users are telemarketing and charging advance fees.

“Credit Repair Cloud and its CEO Daniel Rosen enabled credit repair companies that harvested illegal fees from struggling consumers,” CFPB director Rohit Chopra said in a news release. “We will continue our work to hold individual executives accountable when they violate federal law.”