On January 11, 2017, the Federal Trade Commission (FTC) announced that it had agreed to two stipulated orders (available here and here) with individuals who participated in an alleged fraudulent mortgage relief scheme. According to the FTC, the individuals promised consumers “at least $75,000” or complete relief on their mortgages through a “mass joinder lawsuit.” The…
On January 9, 2017, the Federal Trade Commission (FTC) announced that it had filed a lawsuit in the U.S. District Court for the District of Kansas against one individual and affiliated companies, alleging that they sold portfolios of nonexistent payday loans to debt collectors. The complaint alleges that the companies fabricated lenders and loan…
On November 30, 2016, the Federal Trade Commission (FTC) and the Florida Attorney General (AG) announced several settlements totaling approximately $27 million in an alleged fraudulent credit card debt reduction scheme. In a set of stipulated orders, all but one defendant agreed to monetary judgments, as well as bans on future telemarketing, selling debt relief services, and credit…
On November 14, 2016, the Department of Justice (DOJ) and U.S. Postal Inspection Service announced that four California individual defendants were sentenced for their participation in an allegedly fraudulent debt relief scheme. The defendants all worked for two companies in Orange County, California that offered to settle credit card debts. According to the DOJ,…
On November 10, 2016, the Federal Trade Commission (FTC) announced that it had filed a lawsuit in the Northern District of Georgia against a prepaid credit card provider. The FTC’s complaint alleges violations of Section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices in or…
On October 31, the United States District Court for the Western District of New York granted the Federal Trade Commission’s (FTC) motion for summary judgment against a group of debt collectors, finding that the debt collectors violated the Federal Trade Commission Act (FTCA) and Fair Debt Collection Practices Act (FDCPA)….
On October 4, 2016, the Federal Trade Commission (FTC) announced that the U.S. District Court for the District of Nevada issued an order requiring that a racecar driver and several corporate defendants pay $1.3 billion in relation to a Kansas City-based payday lending scheme. The order also bans the individual…
On September 29, the Federal Trade Commission (FTC) announced that it had filed a complaint in the U.S. District Court for the Central District of California against nine auto dealers for purportedly engaging in deceptive and unfair financing practices. The complaint alleges that these auto dealers targeted non-English speaking consumers…
On September 22, the Federal Trade Commission (FTC) announced that the U.S. District Court for the Central District of California issued a permanent injunction prohibiting five defendants involved in mortgage relief scams from mortgage loan modification and debt relief business. The FTC brought a lawsuit against the five defendants in…
On September 21, the Department of Justice (DOJ) announced that the U.S. District Court for the Eastern District of Texas entered a stipulated order for a permanent injunction and civil penalty judgment against the vice president of a debt collector. Following an investigation of the debt collector by the Federal Trade Commission,…
On September 1, 2016, the Federal Trade Commission (FTC) announced it entered into a stipulated order for permanent injunction against a group of regional law firms over allegations the firms violated the Federal Trade Commission Act by providing illegal mortgage modification services. According to the FTC, the firms charged illegal…
On August 24, 2016, the Federal Trade Commission (FTC) announced that the FTC and the Attorney General for the State of New York (New York AG) reached a settlement with a New York debt collector that will ban the owner and his companies from the debt collection business. The action was part…
On July 14, 2016, the FTC announced that, as part of an ongoing crackdown on deceptive collection practices, it reached a settlement with two debt collectors and three companies charged with using illegal collection tactics. As Enforcement Watch previously covered here, the FTC initially brought the action against the companies in October of 2015 for allegedly taking payments…
On May 25, the Federal Trade Commission (FTC) and the State of Florida announced that they had filed complaints in the United States District Court for the Southern District of Florida seeking permanent injunctive relief against two debt relief providers. The complaints (available here and here) allege that the companies violated the Federal…
On May 9, the Federal Trade Commission (FTC) announced that it had entered into a consent order with a Texas-based debt collector, stemming from allegations that the debt collector had violated the Federal Trade Commission Act (FTCA), Fair Credit Reporting Act (FCRA), and the Duties of Furnishers of Information to Consumer…
On March 30, the Federal Trade Commission (FTC) announced that the Northern District of Illinois granted the FTC and Illinois Attorney General’s request for a temporary restraining order against an Illinois payday loan collection operation. The FTC and AG alleged the payday loan collector was in violation of the FTC Act, Fair Debt Collection…
On February 25, the Federal Trade Commission (FTC) announced that on February 16, the U.S. District Court for the Southern District of California entered a temporary restraining order against a debt relief provider that allegedly deceptively marketed home loan modification services and student loan modification services. The Complaint alleged that for several months…
Late last year, the Federal Trade Commission (FTC) revealed an ongoing nationwide enforcement initiative targeting debt collectors, called Operation Protection Collection. The initiative is the first of its kind coordinated crackdown by state and federal enforcers targeting abusive and deceptive debt collection practices. According to statements by the FTC, the…
On January 8, 2016, the Federal Trade Commission (“FTC”) and the Attorney General for the State of Florida (“Florida AG”) announced charges against a payment processing business relating to an alleged nationwide debt relief telemarketing scam. The amended complaint was filed on December 21, 2015 in the United States District Court for the Middle District…
On January 7, 2016, the Federal Trade Commission (“FTC”) and its law enforcement partners announced four separate actions against various debt collectors. The FTC stated that the actions were part of a continuing nationwide crackdown referred to as “Operation Collection Protection,” which is designed to target debt collectors using illegal tactics. The FTC claims the debt…