Search Results: Debt Collection

FTC Reaches Settlement With Debt Collection Company for “Debt Parking” Scheme

On November 30, 2020 the Federal Trade Commission (FTC) announced ​that it had reached a settlement with a debt collection company for its “debt parking scheme” (also known as “passive debt collection”)​​ in which the company allegedly placed bogus or questionable debts on consumers’ credit reports in an attempt to coerce them to pay the…

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CFPB Settles with Telecommunications Debt Collector for Alleged FCRA and CFPA Violations

On November 12, 2020, the Consumer Financial Protection Bureau (CFPB) announced ​​that it had entered into a consent order with an Illinois-based debt collector that collects debts on behalf of telecommunications companies and furnishes consumer-account information to credit reporting agencies. The CFPB alleged that the debt collector violated the Fair Credit Reporting Act (FCRA) and the…

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CFPB Settles with Debt Collector for Over $15 Million

On October 15, 2020, the Consumer Protection Financial Bureau (CFPB) announced that it has reached a proposed settlement with the nation’s largest debt collector. The CFPB previously reached a consent order with this company in 2015 for alleged violations of the Consumer Financial Protection Act (CFPA), Fair Debt Collection Practices Act (FDCPA),…

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NY Attorney General Settles with Debt Collection Company Over Allegedly Unlawful Student Loan Debt Collection Practices

On September 14, 2020, New York Attorney General Letitia James announced that she secured protections for thousands of student borrowers who defaulted on student loans and who were allegedly subject to misleading and unlawful actions by one of the nation’s largest debt collectors.  The settlement agreement resolves an investigation of…

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​Massachusetts AG Reaches Settlement with Mortgage Servicer for Alleged Debt Collection Violations​

On June 22, 2020, the Massachusetts Attorney General announced ​a settlement with a Florida-based mortgage loan servicer following an investigation into the servicer’s debt collection practices. Specifically, the settlement resolves allegations that the servicer made excessive calls to distressed homeowners and failed to provide written notice of their right to…

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FTC Settles With Operators of Debt Collection Scheme, Permanently Barring Defendants From Debt Collection

FTC

On December 11, the Federal Trade Commission (FTC) announced it had reached a settlement with the remaining Defendants in an enforcement action against multiple related companies and their controllers involved in an alleged phantom debt scheme in which the Defendants pressured consumers into paying non-existent debts by threatening legal action…

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Massachusetts AG Announces Settlement with Debt Buyer for Alleged Abusive Debt Collection Practices

On November 11, 2019, the Massachusetts Attorney General’s Office (AG) announced that it had settled an investigation against a national debt buyer and collector for alleged violations of Massachusetts’ consumer protection law and debt collection regulations through its debt-collection practices. Specifically, the AG alleged that the debt collector pressured debtors…

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