Search Results: Debt Collection

New York Governor Hochul Signs Consumer Credit Fairness Act, Creating Significant Changes for Debt Collection Actions Brought in the State

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…

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FTC Reaches $500,000 Settlement with Payment Processor for Its Role in Alleged Student Loan Debt Relief Scheme

Piggy Bank with a Graduation Cap

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…

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Atlanta-Based Debt Collection Company Agrees to Permanent Ban From Debt Collection Industry

​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)…

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West Virginia AG Files Suit to Block New York Debt Collection Company from Doing Business in West Virginia

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…

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California DFPI Issues $375,000 Sanction Against Debt Collector

​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…

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DOJ Reaches $50,000 Settlement with NJ Higher Education Student Assistance Authority

​On September 20, 2021, the Department of Justice (DOJ) announced that it rea​ched 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…

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Washington AG Settles with Debt Collector Over Deceptive Debt Settlement Letters

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…

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California Regulator Opens Licensing Application For Debt Collectors

Debt collectors operating in California may now submit applications for licensure by the Department of Financial Protection and Innovation (DFPI) in compliance with the state’s newly enacted Debt Collection Licensing Act (DCLA). On September 1, 2021, the DFPI announced that it opened its license application for all debt collectors in…

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Debt Settlement Company Enters into $1 Million Consent Judgment with Massachusetts AG

On August 31, 2021, the Massachusetts Attorney General’s Office (Massachusetts AG) announced that it reached a settlement with a Massachusetts-based debt settlement company to resolve allegations that the company violated the Massachusetts Consumer Protection Act.  The settlement resolves a lawsuit originally filed by the Massachusetts AG in 2018.  In the complaint, the Massachusetts AG alleged that the…

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CFPB Settles Credit Reporting-Related Claims With Debt Collector for $850,000

On August 17, 2021, the Consumer Financial Protection Bureau (CFPB) filed a proposed settlement order that would resolve allegations that a debt collection company had violated the Consumer Financial Protection Act (CFPA), the Fair Credit Reporting Act (FCRA) and its implementing regulation, Regulation V, and the Fair Debt Collection Practices Act (FDCPA). The CFPB’s complaint, filed in…

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Georgia AG Reaches Settlement with Debt Collector for Alleged Unlawful Debt Collection Practices

​On August 12, 2021, the Georgia Attorney General’s Office (AG) announced​ it had entered into a settlement with a debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair Business Practices Act (GFBPA). After conducting an investigation, the Georgia AG alleged that the company engaged in…

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Massachusetts AG Settles with Online Loan Servicer for Alleged Abusive Debt Collection Practices

​On August 12, 2021, the Massachusetts Attorney General (AG) announced ​a settlement ​with an online loan servicer, resolving allegations that the company engaged in abusive debt collection practices in violation of the AG’s debt collection regulations. After the AG’s Office conducted an investigation into the company, the Massachusetts AG alleged that the company, which…

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Washington AG Reaches Settlement with Debt Collector to Resolve Lawsuit Concerning Its Alleged Failure to Offer Garnishment Exemptions and Collection of Unlawful Fees

On June 8, 2020 the Washington Attorney General’s office (Washington AG) announced that a consent order had been reached with a Colorado-based debt collection agency that would require the agency to pay $475,000 to approximately 5,000 Washington consumers to resolve a lawsuit originally filed in April 2020 in Washington state…

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Seventh Circuit Yet Again Reaffirms Spokeo Principle That Bare FDCPA Violation Is Not Actionable

On May 14, 2021, the Seventh Circuit United States Court of Appeals issued a decision reaffirming the rule from “a slew of cases” that, without injury, a Fair Debt Collection Practices Act (FDCPA) claim alleging a bare procedural violation is not actionable.  The case—Markakos v. Medicredi, Inc., No. 20-2351—involved an…

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Indiana AG Secures $1.3 Million Default Judgment Against Illinois-based Debt Collector

On Ap​ril 14, 2021, the Indiana Attorney General (Indiana AG) announced that his office obtained a default judgment against an Illinois-based debt collection agency and the agency’s owner. The original complaint filed by the Indiana AG alleged the agency violated Indiana’s Deceptive Consumer Sales Act by improperly threatening borrowers with legal action, such as liens…

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Minnesota AG Announces Settlement with Student Loan Debt Relief Company

On April 13, 2021, the Minnesota Attorney General Office (Minnesota AG) announced that it reached a settlement with a California-based student-loan debt-relief company resolving alleged violations of Minnesota’s Debt Services Settlement Act, Prevention of Consumer Fraud Act, Minn. Stat. § 325F.69, et seq.,​ and Uniform Deceptive Trade Practices Act, Minn. Stat. § 325D.43, et seq. The Minnesota…

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