Employees confirm massive layoff at Progrexion; future of company unknown
Published at | Updated at
REXBURG — A large call center in Rexburg suddenly laid off hundreds of workers Wednesday.
Multiple employees working for Progrexion’s local office confirmed to EastIdahoNews.com that large numbers of employees across several states had suddenly lost their jobs.
“All employees of Progrexion Teleservices, Inc. are being separated from employment as of April 5, 2023,” the company told employees in an email. “Since your role largely supports the teleservices function, today is your last day of employment.”
Progrexion, a credit repair company based out of Salt Lake City, employed over 3,000 people in Utah, Idaho and Arizona, according to its website.
EastIdahoNews.com has contacted Progrexion and its parent company, HIG Capital, numerous times; there has been no response to our attempts to learn more about the situation or get a statement. Phones go directly to voicemail.
Former employees have also been reluctant to discuss Wednesday’s happenings on the record. EastIdahoNews.com was contacted by several employees who lost their jobs; however, only one person was willing to speak publically. Other sources were adamant that we not use their names.
Legal troubles
Progrexion was the named defendant in a federal court case brought by the Bureau of Consumer Financial Protection. The Bureau claimed Progrexion’s manner of conducting sales violated the Telemarketing Sales Rule.
Progrexion, the Bureau stated, charged customers when they signed up for services and every month after that. The services did not have a set expiration date, meaning Progrexion could continue charging customers indefinitely. Moreover, the company never proved to customers that the result they had been promised (an improved credit score) was ever achieved.
District Judge Bruce S. Jenkins of the Circuit Court in Utah found Progrexion was, indeed, non-compliant. In fact, Jenkins stated Progrexion “make no attempt” to be compliant with the law, according to court documents.
The ruling “fundamentally eliminates the ability to conduct business in the manner which Progrexion Teleservices, Inc., has operated,” according to the email sent to employees. The company had appealed the ruling and obtained a temporary stay from the United States Court of Appeals for the Tenth Circuit, but the stay was eliminated by the appellate court on April 4.
“We’re showing no signs of slowing down.”
Former employees are understandably stunned. The lawsuit was something they were aware of, but they had been assured by management that it would not affect the company’s daily workings.
Nathan Martin was a new employee at the Rexburg location. He told EastIdahoNews.com that everything seemed to be going well. “They had just sent out an email about a new training class starting on Monday,” he remembered.
On Wednesday morning, Martin was running late for his 7 a.m. shift. He hurried into Progrexion, went to this station, and logged into his computer. This is when his day and life took an unexpected turn.
There were no calls in the queue. In fact, none of his coworkers were taking calls.
“I heard no one talking,” Martin said. “And there were no managers around.”
Eventually, they realized the managers were meeting in a conference room.
“My desk was pretty close to (the conference room),” Martin said. From the timber of the voices coming through the door, what Martin described as “uncomfortable laugher” and the state of the office in general, he knew something was wrong.
“I thought, ‘Something not-good is happening.'”
At 8 a.m. Progrexion’s VP of Marketing, Khang Nguyen, addressed the entire company via Zoom. That’s when they all learned just how drastically life was changing.
Multiple employees told EastIdahoNews.com they were not given any notice, nor were they offered severance. Their unemployment was, they were told, effective immediately. Their health benefits will be terminated at the end of the month.
“Progrexion ASG, Inc. was unable to provide notice of these events prior to today and (is) unable to provide you 60 days’ notice,” another email to employees stated.
“We were told to make sure our hours were correct and leave,” Martin said. The layoff, according to the company, is permanent.
Progrexion subsidiaries credit.com, creditrepair.com and Lexington Law all remain in operation, according to multiple employees.