On July 13, 2018, the Consumer Financial Protection Bureau (CFPB) announced a settlement with a debt collection company and its CEO for allegedly illegal debt-collection acts and practices. According to the CFPB, the company collected on consumer debts using various debt collection companies that allegedly engaged in unfair and deceptive practices in violation of…
On July 13, the Consumer Financial Protection Bureau (CFPB) announced that it settled allegations that a Kansas-based debt collector and its CEO engaged in unfair and deceptive acts and practices in violation of the Consumer Financial Protection Act (CFPA) and Fair Debt Collection Practices Act (FDCPA). The CFPB alleged that,…
On June 13, 2018, the Consumer Financial Protection Bureau (CFPB) announced its settlement with a South Carolina corporation and its subsidiaries over allegations that the companies engaged in improper debt collection and credit furnishing practices. According to the consent order, the CFPB found that the companies made improper in-person and…
On June 14, 2018, the California Attorney General announced that it had entered into a settlement with a company holding nearly 35,000 private student loans across California. In the complaint, which was filed on June 13, 2018, the Attorney General alleged that the company had engaged in unlawful debt collection…
At the end of May 2018, the Consumer Financial Protection Bureau (CFPB) released an analysis of consumer debt collection complaints highlighting several issues that often arise in those complaints. In light of Acting Director Mulvaney’s comment in his January 2018 staff memo that debt collection complaints made up the majority…
On June 4, 2018, the Federal Trade Commission (FTC) announced a settlement with a North Carolina debt collection company and its principals over alleged illegal collection practices. In August 2017, the FTC filed an action against the defendants alleging violations of Section 5 of the Federal Trade Commission Act, 15…
On May 15, 2018, the United States Court of Appeals for the Third Circuit issued an important decision regarding the statute of limitations under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692, et seq. In Rotkiske v. Klemm, No. 16-1668 (3d Cir. May 15, 2018), on appeal…
On April 12, 2018, the Federal Trade Commission (FTC) announced proposed settlements with three marketers for illegal debt relief and loan services. In May 2017, the FTC filed an action against the three marketers and eleven related corporate entities claiming that the defendants engaged in a wide-scale debt relief scheme…
On April 4, Georgia Attorney General Chris Carr (“Georgia AG”) announced an $8.5 million settlement with a national debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair Business Practices Act. The Georgia AG had alleged that the company harassed and deceived consumers…
On March 22, 2018, the Federal Trade Commission (FTC), in conjunction with the New York Attorney General (AG), announced that it had entered into settlements with debt collection companies and their operators over allegedly deceptive and unlawful debt collection practices. In a February 2015 complaint filed in the United States District Court for the Western…
On February 16, 2018, the 6th Circuit, in Hagy v. Demers & Adams (882 F.3d 616 (6th Cir. Feb. 16, 2018)), found that a former borrower did not have standing to assert a claim under the Fair Debt Collection Practices Act (FDCPA) absent a showing of concrete harm. The case is one of…
On January 17, the New York Attorney General (AG) filed a motion to compel a debt collection company and its owner to produce financial documents, business records, and other documents in a lawsuit alleging that the defendants were part of an illegal debt collection scheme. The lawsuit, which was filed…
On November 8, a federal court in Georgia issued a temporary restraining order against a Georgia-based debt collector, freezing its assets and granting the Federal Trade Commission (“FTC”) immediate access to its business premises. The court granted this relief in response to a complaint filed by the FTC alleging that the…
On November 8, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced it filed suit in federal court in California against a national debt-settlement services provider and its CEO based on alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536(a), 5564, 5565, the Telemarketing Consumer Fraud and Abuse…
On November 1, the Federal Trade Commission (FTC) and Illinois Attorney General’s Office (Illinois AG) announced (here and here) that they had reached a settlement to resolve a joint action brought against affiliated Chicago-based debt collectors that allegedly used false and misleading tactics in attempting to collect on payday or other small-dollar loans. The…
On September 29, 2017, the Texas Attorney General (Texas AG) announced that it reached settlement in the form of an Assurance of Voluntary Compliance with a lead generation company that directed business to a debt relief company that the Texas AG sued in 2013 for providing fraudulent and illegal debt-relief services. The…
On September 27, the U.S. Department of Justice (“DOJ”) announced that it had entered into a $760,000 settlement with two affiliated auto finance companies stemming from allegations that the companies violated the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3901, et seq., by failing to obtain court orders prior to repossessing vehicles owned…
On September 25, 2017, New York’s Department of Financial Services (DFS) announced that it had entered into a consent order with a payday loan servicer and debt collector over the servicing and collection practices on usurious payday loan debts, resulting in nearly $12 million in relief for affected consumers. Payday loans are illegal in New York, and…
On September 18, 2017, the Department of Justice (“DOJ”) announced that it had entered into a $907,000 settlement with an auto loan lender and servicer (“Defendant”). In its complaint, filed the same day in the United States District Court for the Northern District of Texas, the DOJ alleged that the Defendant had…
On August 10, in Schweitzer v. Comenity Bank, No. 16-10498 (Aug. 10, 2017), a panel of the Eleventh Circuit expanded liability for companies under the Telephone Consumer Protection Act, 47 U.S.C. § 227 et seq. (TCPA). Building on the holding in Osorio v. State Farm Bank, F.S.B., 746 F.3d 1242, 1255 (11th…