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Category Archives: Debt Collection

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Human Rights Watch issues report on debt buyers

Posted in Debt Collection

A new report by Human Rights Watch (HRW) titled “Rubber Stamp Justice—US Courts, Debt Buying Corporations, and the Poor” is likely to find readers at the CFPB, which is expected to move closer early this year to proposing debt collection regulations.  In its Fall rulemaking agenda, the CFPB estimated that further prerule activities would occur in… More >

CFPB issues bulletin on in-person debt collection

Posted in Debt Collection

The CFPB has issued a bulletin (Compliance Bulletin 2015-07) to provide guidance to creditors, debt buyers and third-party debt collectors about compliance with the CFPA UDAAP prohibition and the FDCPA when conducting in-person debt collection visits, such as visits to a consumer’s workplace or home. The bulletin highlights the following potential compliance violations that can… More >

FTC announces “Operation Collection Protection”

Posted in Debt Collection, FTC

Last week, the FTC announced a new coordinated effort against unlawful debt collection practices, “Operation Collection Protection.”  The FTC also announced that federal, state and local law enforcement agencies have brought 30 new actions against debt collectors nationwide. In targeting debt collectors, the FTC is joining forces with the CFPB as well as the Department… More >

CFPB to participate in FTC Atlanta debt collection program

Posted in Debt Collection, FTC

The CFPB will be participating in the FTC’s third “Debt Collection Dialogue” to be held in in Atlanta, Georgia on November 18, 2015.  Gregory Nodler, CFPB Senior Counsel for Enforcement Policy and Strategy, is scheduled to be a panelist.  The program will include a discussion of enforcement actions, consumer complaints, compliance issues, industry best practices, and… More >

CFPB urged to consider “unintended consequences” of debt collection regulations

Posted in CFPB Rulemaking, Debt Collection

A new article by Todd Zywicki for the Mercatus Center at George Mason University urges the CFPB to consider the “unintended consequences” of new debt collection regulations and conduct a careful cost-benefit analysis before imposing such regulations.  Mr. Zywicki is a law professor at George Mason and Senior Scholar with the Mercatus Center. In November… More >

CFPB Orders Indirect Auto Finance and Title Loan Companies to Pay $48.35 Million in Redress and Penalties For Abusive Debt Collection Practices

Posted in Auto Finance, CFPB Enforcement, Debt Collection

The CFPB has entered into a consent order with Westlake Services, LLC, an indirect auto finance company, and its wholly owned subsidiary, Wilshire Consumer Credit, LLC, for alleged deceptive debt collection practices. The consent order requires the companies to provide $44.1 million in redress and balance relief to borrowers and imposes a civil money penalty… More >

Atlanta federal district court interprets CFPA standard for “substantial assistance” liability

Posted in CFPB Enforcement, Debt Collection, UDAAP

Earlier this year, the CFPB filed a complaint in Atlanta federal district court targeting an alleged debt collection scam in which not only were the debt collectors named as defendants (Debt Collectors) but three companies involved in providing payment processing services to the Debt Collectors were also named as defendants.  One of those companies processed… More >

FTC Dallas debt collection program draws a crowd

Posted in Debt Collection

The FTC has announced that it is moving its second “Debt Collection Dialogue,” scheduled to be held in Dallas, Texas on September 29, 2015, to a larger venue.   The FTC is moving to the larger venue because the number of pre-registrations had almost reached the maximum for the previously scheduled venue.  It is also re-opening pre-registration,… More >

CFPB files amicus brief in FDCPA case applying “meaningful attorney involvement” standard to debt collection litigation

Posted in Debt Collection

The CFPB, jointly with the FTC, has filed an amicus brief with the U.S. Court of Appeals for the Third Circuit in Bock v. Pressler & Pressler, LLP, the case in which the district court ruled that a debt collection law firm violated the FDCPA by filing a complaint without “meaningful attorney involvement.”  In the… More >

CFPB to participate in Dallas FTC debt collection program

Posted in Debt Collection, FTC

The CFPB will be participating in the FTC’s second “Debt Collection Dialogue” to be held in Dallas, Texas on September 29, 2015.  Gregory Nodler, CFPB Senior Counsel for Enforcement Policy and Strategy, is scheduled to be a panelist.  The program will include a discussion of enforcement actions, consumer complaints, compliance issues, industry best practices, and… More >

CFPB sends debt collection questionnaire

Posted in Debt Collection

The CFPB has sent a questionnaire which, according to the CFPB’s accompanying cover letter, is intended to help the CFPB “better understand operational costs and other factors associated with debt collection.”  The cover letter indicates that the questionnaire was sent to “a variety of debt collection firms, creditors, and service providers” and that responses “will inform… More >

NCLC recommends debt collection regulations to CFPB

Posted in Debt Collection

In a new report entitled “Debt Collection Communications: Protecting Consumers in the Digital Age,” the National Consumer Law Center “specifies the regulations the [CFPB] should adopt regarding when, where, how, and how often consumers can be contacted by debt collectors and creditors engaged in debt collection.”  According to the NCLC, while the report “is framed… More >

Why the CFPB’s new lawsuit resembles “Operation Choke Point”

Posted in CFPB Enforcement, Debt Collection

Yesterday, the CFPB announced that it had filed a lawsuit against “the ringleaders of a robo-call phantom debt collection operation, their companies, and their service providers.”  This is the same lawsuit filed in federal district court in Atlanta that we blogged about on Monday, and as we indicated, the service providers named as defendants included payment… More >

New CFPB lawsuit targets payment processors for debt collectors

Posted in CFPB Enforcement, Debt Collection

A new CFPB enforcement action filed in federal district court in Atlanta and unsealed last week targeting an alleged debt collection scam names as defendants not only the debt collectors and their individual principals but various companies alleged to have been “service providers” to the collectors, including payment processors.  Both the CFPB and the FTC… More >

CFPB issues FDCPA 2015 report

Posted in Debt Collection

The CFPB has issued its fourth annual FDCPA report covering the CFPB’s activities in 2014.  The section of the report that reviews consumer complaints about debt collection received by the CFPB in 2014 recycles information contained in the CFPB’s latest Consumer Response Annual Report. In the section of the report about the CFPB’s supervision of… More >

FTC touts partnership with CFPB in annual debt collection report

Posted in Debt Collection

In the FTC’s 2014 annual letter to the CFPB summarizing the FTC’s debt collection activities, the FTC describes the CFPB as a “valuable partner” with whom the FTC anticipates an “even stronger [partnership] in the future.”  The letter includes a discussion of the FTC’s collaboration with the CFPB on several amicus briefs in cases involving FDCPA issues,… More >

CFPB settles with military base retailer and related companies for alleged unlawful debt collection practices

Posted in CFPB Enforcement, Debt Collection, Military Issues

As part of this week’s flurry of enforcement-related announcements, the CFPB announced the settlement of a lawsuit filed jointly with the Attorneys General of North Carolina and Virginia  against Freedom Stores, Inc. (Freedom), a retailer selling merchandise online and in retail stores located near military bases that offered financing through retail installment contracts (RIC), for alleged… More >

CFPB requires credit bureaus to identify furnishers and industries with highest dispute rates and issues study of collections tradelines

Posted in Credit Reports, Debt Collection

In conjunction with its field hearing today on medical debt collection, the CFPB released a study that “describes characteristics of the medical and non-medical collections tradelines on consumers’ credit reports and the processes by which they appear and disappear.”  However, what deserves to be the headline grabber is the CFPB’s accompanying announcement that “the major… More >