Search Results: Debt Collection

Colorado Supreme Court Issues Injunction Against Debt Settlement Company for False Advertising

On February 5, 2015, the Colorado Attorney General announced that the Colorado Supreme Court affirmed a temporary injunction order that bars a debt settlement company from continuing operations in the State of Colorado. The State’s motion successfully barred the company from engaging in the unauthorized practice of law in connection…

Read More

CFPB Orders Lender To Reduce Student Loan Principal Balances By $480 Million

The Consumer Financial Protection Bureau (CFPB) recently announced that it had reached an agreement to give students of Corinthian College, Inc. at least $480 million in principal reductions on existing student debt. Former and current students will receive an immediate 40% reduction on existing principal balances of their loans with…

Read More

What You Need To Know About The CFPB’s Proposal to Use the Dodd-Frank Act to Expand the FDCPA to First-Party Debt Collectors

Speculation abounds regarding what the CFPB’s expected 2015 rules regarding first party debt collectors will be.  Here’s the background you need to know. On November 12, 2013, the CFPB issued an Advance Notice of Proposed Rulemaking, seeking comments to its proposal to update the Fair Debt Collection Practices Act (“FDCPA”).  As…

Read More

NY Department of Financial Services Issues Final Debt Collection Regulations

On December 3, New York governor Andrew Cuomo announced the final version of the state Department of Financial Services (DFS) regulations governing debt collection actions by third-party debt collectors and debt buyers.  The regulations contain a number of new requirements for third party debt collectors, including: New / Enhanced Initial…

Read More

Supreme Court Will Not Review Third Circuit FDCPA Decision

The U.S. Supreme Court recently declined to review a debt collector’s appeal of the Third Circuit’s decision this summer that debtors were not required to dispute their debt under the Fair Debt Collection Practices Act (FDCPA) before filing suit.  The Third Circuit decision reversed a district court’s dismissal of a class…

Read More

Recent DOJ & CFPB Consent Orders Highlight ECOA Risks For Servicers

Synchrony Bank (formerly known as GE Capital Retail Bank) made two direct mail offers to its credit card holders, but it did not send the offers to Spanish-speaking customers.  The Bank self-reported its actions, resulting in consent orders with the Consumer Financial Protection Bureau and the Department of Justice, which…

Read More

FTC Settles with Auto Lender over Improper Servicing, Collection, and Quality Control Practices

The Federal Trade Commission (FTC) recently announced a $5.5 million monetary and injunctive settlement with auto lender Consumer Portfolio Services, Inc. (CPS) concerning allegations that the company used illegal tactics in servicing and collecting consumers’ auto loans, and failed to adopt proper quality controls, in violation of Section 5 of…

Read More