Search Results: Debt Collection

CFPB Orders Medical Debt Collection Law Firms To Pay Over $600,000 For Alleged Misrepresentations

On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with two affiliated medical debt collection law firms over allegations that the law firms used deceptive collection letters and illegally notarized collection affidavits.  The consent order alleges that the law firms would send debtors collection…

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Arkansas AG Files Suit Against Auto Dealerships Over Deceptive Financing Practices

On December 17, 2016, the Arkansas Attorney General’s Office (“Arkansas AG”) announced that it had filed a lawsuit against affiliated auto dealerships for violations of the Arkansas Deceptive Trade Practices Act.  The Arkansas AG alleged that these auto dealerships would submit loan applications to third-party lenders, who would then deposit…

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United States Attorney’s Office Announces Guilty Pleas in Criminal Prosecution of Alleged $31 Million Debt Collection Scheme

On November 18, 2016, the U.S. Attorney’s Office for the Southern District of New York (“USAO”) announced that the co-owner and chief financial officer of a debt collection company, and a company manager, pleaded guilty to engaging in illegal and abusive debt collection practices.  The Court also sentenced another company employee to…

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Fifth California Resident Sentenced for Participation in Debt Relief Scheme

On November 21, 2016, the U.S. Department of Justice (DOJ) and U.S. Postal Inspection Service announced that an individual defendant was sentenced for his participation in an allegedly fraudulent debt relief scheme.  The defendant worked for two companies in Orange County, California that offered to settle credit card debts.  According to…

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Vermont AG Settles Lawsuit with California Student Loan Debt Consolidation Company

On November 18, 2016, the Attorney General for the State of Vermont (Vermont AG) announced that it had entered into a settlement with a California student loan debt consolidation company related to the company’s business of helping consumers consolidate their loans to reduce their student loan debt.  As part of the settlement, the…

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Four California Residents Jailed and to Pay $7 Million in Restitution for Debt Relief Scheme

On November 14, 2016, the Department of Justice (DOJ) and U.S. Postal Inspection Service announced that four California individual defendants were sentenced for their participation in an allegedly fraudulent debt relief scheme.  The defendants all worked for two companies in Orange County, California that offered to settle credit card debts.  According to the DOJ,…

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