On June 8, 2020 the Washington Attorney General’s office (Washington AG) announced that a consent order had been reached with a Colorado-based debt collection agency that would require the agency to pay $475,000 to approximately 5,000 Washington consumers to resolve a lawsuit originally filed in April 2020 in Washington state…
On April 14, 2021, the Indiana Attorney General (Indiana AG) announced that his office obtained a default judgment against an Illinois-based debt collection agency and the agency’s owner. The original complaint filed by the Indiana AG alleged the agency violated Indiana’s Deceptive Consumer Sales Act by improperly threatening borrowers with legal action, such as liens…
On April 22, the CFPB announced that it and the NY AG had filed a complaint in the U.S. District Court for the Western District of New York seeking to seize a $1.6 million home they allege was fraudulently transferred by the owner of a shuttered debt-collection scheme. According to the CFPB, after discovering the federal and state…
On April 13, 2021, the Minnesota Attorney General Office (Minnesota AG) announced that it reached a settlement with a California-based student-loan debt-relief company resolving alleged violations of Minnesota’s Debt Services Settlement Act, Prevention of Consumer Fraud Act, Minn. Stat. § 325F.69, et seq., and Uniform Deceptive Trade Practices Act, Minn. Stat. § 325D.43, et seq. The Minnesota…
On April 6, 2021, the Pennsylvania Attorney General (Pennsylvania AG) announced that it reached an agreement with a Texas-based debt buyer concerning a portfolio of student loan debt it purchased from a now-defunct for-profit college. According to the Pennsylvania AG, the debt purchaser purchased the portfolio of loans after the for-profit college abruptly closed in December 2018 due to…
On April 6, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a third-party debt collection company and its former owner for alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536 and Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq. The CFPB alleged that…
On February 8, 2021, the Delaware Attorney General (Delaware AG) announced that it filed an administrative lawsuit against a California-based debt-management services company for allegedly violating the Delaware Uniform Debt-Management Services Act, the Delaware Consumer Fraud Act, and the Delaware Deceptive Trade Practices Act. According to the Delaware AG, the debt-management company used misleading advertising to target elderly and…
On January 28, 2021, the California Department of Financial Protection & Innovation (DFPI) announced that it entered into five Memorandums of Understanding (MOUs) with five different earned wage access companies. Earned wage access companies provide consumers with advances or “on-demand pay” before their pay day for wages that they have earned but not yet received. According to…
On January 19, 2020, the California Department of Financial Protection and Innovation (DFPI) launched an investigation into a dozen debt collectors potentially engaging in unlawful, unfair, deceptive, or abusive acts or practices (UDAAP) under California law. This represents the first major public action taken under the expanded oversight and enforcement authority of the California…
On December 16, 2020, the Pennsylvania Attorney General (Pennsylvania AG) announced a settlement with a California-based student loan forgiveness company for alleged violations of state consumer protection laws. According to the Pennslyvania AG, the company used false advertising tactics and posted fraudulent customer reviews on the Better Business Bureau website. Further, the company…