On June 13, 2018, the Consumer Financial Protection Bureau (CFPB) announced its settlement with a South Carolina corporation and its subsidiaries over allegations that the companies engaged in improper debt collection and credit furnishing practices.
According to the consent order, the CFPB found that the companies made improper in-person and telephonic collection attempts on consumer installment loans and retail sales installment contracts in violation of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536(a). According to the CFPB, these attempts included physically preventing consumers from leaving their homes and visiting and calling consumers at work, even though the companies knew that those contacts could endanger the consumers’ employment. The CFPB further found that the companies regularly furnished inaccurate and incomplete information about consumers to credit reporting agencies in violation of the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681-1681X.
Per the consent order, the companies are barred from engaging in certain collection practices, and must correct the inaccurate information about consumers that they gave to credit reporting agencies. The companies are also required to pay $5 million in civil money penalties.