On June 18, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a medical debt collection company over allegations that the company’s debt-collection activities violated the Fair Credit Reporting Act (“FCRA”) and the Fair Debt Collection Practices Act (“FDCPA”). The consent order alleged that the company failed to respond within the statutorily required timeframe to over 13,000 communications from consumers who disputed the information furnished by the company to credit reporting agencies. The consent order also alleged that the company failed to provide “debt validation” notices to over 10,000 consumers within five days of first contact, as required by the FDCPA. In connection with the consent order, the company agreed to cease and desist from further violations of the FCRA or FDCPA, submit a compliance plan to the CFPB, allocate $5,130,213.94 for consumer relief, pay a civil money penalty of $500,000, and comply with various recordkeeping and notice requirements.
