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

CFPB sign

CFPB signOn 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 2019, alleged that the company failed to implement proper policies and procedures regarding the accuracy of information that it furnished to consumer reporting agencies.  The CFPB also alleged that the company failed to conduct reasonable investigations of indirect disputes—disputes that are submitted by consumers directly to credit reporting agencies.  Additionally, the CFPB alleged that the company furnished information to consumer reporting agencies about specific accounts even after consumers reported that those accounts were the result of identity theft.  Finally, the CFPB alleged that the company violated the FDCPA by telling consumers they owed certain debts without a reasonable basis for the assertion.

If entered, the settlement will require the company to pay $850,000 in civil penalties.  Additionally, the settlement will require the company to:  (1) implement, and evaluate the effectiveness of, reasonable policies and procedures to ensure the accuracy of information furnished to reporting agencies; (2) properly review reports of identity theft; and (3) retain an independent consultant to conduct a review of the company’s practices.