On June 8, the CFPB announced it had entered into a consent order with a third-party debt collector over allegations of illegal medical debt collecting practices and unfair credit reporting. The CFPB asserted that the company attempted to collect on unsubstantiated debt in over a thousand cases. According to the CFPB, its…
On December 22, 2022, the Massachusetts Attorney General (AG) announced a settlement with a South Carolina mortgage servicing company to resolve allegations that the company violated state mortgage servicing and debt collection laws. After an investigation, the AG alleged that the servicer did not take “reasonable steps” to help borrowers avoid foreclosures…
On October 11, 2022, the North Carolina Attorney General’s Office (NC AG) announced that it had entered into a consent order with certain Texas-based debt collection companies, resolving allegations that those companies engaged in illegal debt collection practices in violation of various state statutes. In 2019, the NC AG filed a lawsuit in North Carolina state court alleging that…
On June 9, 2022, the CFPB announced that it had reached an agreement with the former owner of a student-loan debt relief company banning the owner from the debt-relief industry. The CFPB filed a complaint in U.S. District Court for the Southern District of California alleging that the individual violated the Consumer Financial Protection Act…
On May 26, 2022, the North Carolina Attorney General (NC AG) announced that it obtained a default judgment against a California-based debt settlement business, and its proprietor. The lawsuit, filed on June 25, 2021 in the North Carolina Superior Court for Wake County, alleged that the entity violated North Carolina’s Debt Adjusting Act, N.C. Gen. Stat….
On May 23, 2022, the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (NY AG) announced that they have settled a case filed against six New York debt collection companies and affiliated individuals, resolving a one-and-a-half year enforcement action. The original complaint was filed on September 20, 2020 in the U.S. District Court for the Western…
On April 27, 2022, the U.S. District Court for the Western District of Pennsylvania certified a class comprised of individuals alleging the Defendants violated the Fair Debt Collection Practices Act (FDCPA). Plaintiffs allege Defendants violated the FDCPA by sending collections letters encouraging individuals to accept discounted repayment offers before a…
On May 16, 2022, the Arizona Attorney General’s Office (Arizona AG) announced that it reached a settlement agreement with the owner of several debt collection companies regarding alleged deceptive debt collection practices in violation of state law. The agreement resolves a lawsuit by the Arizona AG filed in September 2020, alleging that the companies collected or attempted to collect payments…
On March 1, 2022, the Consumer Financial Protection Bureau (CFPB) issued a report titled Medical Debt Burden in the United States (Report) highlighting the complicated and burdensome nature of the medical billing system in the United States. In the Report, the CFPB attributes its heightened interest in medical debt collections…
On January 26, 2022, the Federal Trade Commission (FTC) announced that it resolved claims against the remaining defendants in an action concerning student loan debt relief products and services that commenced in 2019. As we previously reported, the FTC filed a complaint against a collection of interrelated companies in November 2019, alleging that they used fraudulent…
On January 10, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint against three New York-based debt collection companies and their owners. The CFPB alleged the companies sold debts to collection companies that used unlawful collection tactics. Specifically, the CFPB alleged the companies knew or should have known that the…
On December 13, 2021, the Federal Trade Commission (FTC) announced that it reached a settlement with a group of South Carolina-based debt collection companies to resolve allegations that the companies violated the Federal Trade Commission Act (FTC Act) and the Fair Debt Collection Practices Act (FDCPA). The FTC’s complaint, originally filed in July…
On November 23, 2021, the New York Attorney General (“NYAG”) announced an agreement shutting down a Buffalo, NY based debt collection firm that the NYAG alleges violated the Fair Debt Collections Practices Act (“FDCPA”), the Consumer Financial Protection Act (“CFPA”), and various provisions of the New York General Business Laws. …
On November 8, 2021, New York Governor Kathy Hochul signed the Consumer Credit Fairness Act (the Act) into law. The Act will likely have substantial impact on debt collection lawsuits filed by creditors or debt collectors in New York. The Act not only reduces the statute of limitations for filing…
On November 8, 2021 the Federal Trade Commission (FTC) announced that it entered into a stipulated order with a payment processor, resolving allegations that the payment processor violated Section 5 of the Federal Trade Commission Act (FTC Act) and the Telemarketing Sales Rule (TSR) by facilitating payments related to an unlawful student…
On September 27, 2021, the Federal Trade Commission (FTC) announced a settlement with an Atlanta-based debt collection company and its owners that would ban them from the debt collection industry. The FTC had originally filed suit in 2020, after which the court issued an ex parte temporary restraining order prohibiting the company from doing business. The complaint, filed in September 2020, alleged violations of Section 5(a)…
On September 23, 2021, the West Virginia Attorney General’s Office (AG) announced that it had filed a complaint against a New York-based debt collection agency for violations of the West Virginia Consumer Credit and Protection Act (WVCCPA) . The complaint alleges that the debt collection agency violated West Virginia law by operating without proper authorization and by using illegal, high-pressure…
On September 22, 2021, the California Department of Financial Protection and Innovation (DFPI) announced that it issued its first enforcement action against a debt collection company for various practices, including threatening to sue consumers and garnish wages, and for submitting negative information to credit bureaus without first providing required notice, in violation…
On September 20, 2021, the Department of Justice (DOJ) announced that it reached a settlement with the New Jersey Higher Education Student Assistance Authority (HESAA), resolving allegations that the state agency unlawfully obtained default judgments against two military servicemembers for student loan debt in violation of the Servicemembers Civil Relief Act (SCRA). In a…
On September 8, 2021, the Washington Attorney General’s Office (AG) announced that it had reached a settlement agreement with a debt collection company, resolving allegations that the company had violated the Washington Consumer Protection Act (CPA), RCW 19.86, and the Washington Collection Agency Act (CAA), RCW 19.16. The settlement concludes a lawsuit originally filed June…