Debt Collection

FTC Settles with Student Debt Relief Companies for $19 Million

FTC

On September 28, 2018, the Federal Trade Commission (FTC) announced that it had reached a settlement with loan debt relief operators in connection with the coordinated federal-state enforcement initiative to target deceptive student loan debt relief scams, called “Operation Game of Loans.” According to the FTC, the operators violated the federal law by allegedly…

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New York AG Announces Court Order Requiring Debt Collectors to Pay $27 Million

On September 21, New York Attorney General Barbara D. Underwood announced a stipulated court order against three entities and individuals for illegal debt collection practices (collectively, “defendants”), which permanently bans the defendants from the debt collection industry and requires collective payment of almost $27 million in restitution and damages. The court…

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New York AG Sues Nine Student Loan Debt Relief Companies Over Misrepresentations

On September 20, New York Attorney General Barbara D. Underwood announced a lawsuit against nine student loan debt relief companies, their financing company, and two individuals with leadership roles in several of the companies (collectively, “defendants”).  The lawsuit alleges that defendants violated the Federal Credit Repair Organization Act, 15 U.S.C. §…

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FTC Settles for Nearly $3.5 Million with Debt Collectors Over Alleged Debt Collection Scheme

FTC

​On September 7, 2018, the Federal Trade Commission (FTC) announced a settlement with a Georgia debt collection company and its principals over alleged illegal collection practices. In October 2017, the FTC filed an action against the defendants alleging violations of the Federal Trade Commission Act (FTC Act), 15 U.S.C. §§ 45(a), 53(b),…

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CFPB Settles With Debt Collection Company and CEO for $6 Million

On July 13, 2018, the Consumer Financial Protection Bureau (CFPB) announced a settlement with a debt collection company and its CEO for allegedly illegal debt-collection acts and practices. According to the CFPB, the company collected on consumer debts using various debt collection companies that allegedly engaged in unfair and deceptive practices in violation of…

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CFPB Settles with South Carolina Companies Over Improper Debt Collection Practices

On June 13, 2018, the Consumer Financial Protection Bureau​ (CFPB) annou​nced its settlement with a South Carolina corporation and its subsidiaries over allegations that the companies engaged in improper debt collection and credit furnishing practices. According to the consent order, the CFPB found that the companies made improper in-person and…

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