FDCPA

First Half of 2018 Sees Significant Decline in Publicly Announced or Publicly Filed Enforcement Activity

During the first half of 2018, Enforcement Watch tracked 40 publicly announced or publicly filed enforcement actions involving consumer financial services companies. The 18 enforcement actions tracked during Q1 2018 represent a substantial decrease from the 46 actions tracked in Q1 2017. That trend continued in Q2 2018, with Enforcement Watch…

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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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Georgia AG Announces $8.5 Million Settlement with Debt Collector

On April 4, Georgia Attorney General Chris Carr (“Georgia AG”) announced​ an $8.5 million settlement with a national debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair Business Practices Act. The Georgia AG had alleged that the company harassed and deceived consumers…

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District Court Rejects Servicer's Argument that CFPB is Unconstitutional

​On August 4, 2017, the United States District Court for the Middle District of Pennsylvania denied a student loan servicer’s motion to dismiss claims brought against it by the Consumer Financial Protection Bureau (CFPB), rejecting the servicer’s argument that the claims fail because the CFPB is unconstitutional. In January 2017, the…

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Five State Regulators Settle Claims Against Student Loan Debt Collector for $500,000

​On August 10, 2017, the Massachusetts Division of Banks (DOB) announced that it had reached, together with the financial regulators of Connecticut, Idaho, Minnesota, and North Dakota, a settlement with two companies, resolving allegations that their debt collection practices failed to comply with state and federal consumer protection laws, including the Fair Debt…

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FTC Obtains Temporary Restraining Order Freezing Assets of Debt Collection Operation

​On July 10, 2017, the U.S. District Court for the Middle District of Florida entered a temporary restraining​ order (“TRO”) halting operations and freezing the assets of a debt collection operation, at the request of the Federal Trade Commission (“FTC”)​. The FTC charged the defendant company and individuals with violating Section 5(a)…

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FTC Brings Suit Against Debt Collector for "Phantom Debts"

On June 23, 2017, the Federal Trade Commission (FTC) announced​​ that it has filed a complaint in the U.S. District Court for the Western District of North Carolina against a North Carolina debt collection company and its owner, alleging that the defendants took money from consumers for fake or “phantom” debts they did not owe. According…

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