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Consumer Finance Insights
July 13, 2018

CFPB Settles Unfair and Deceptive Practices Claims With Debt Collector

​On July 13, the Consumer Financial Protection Bureau (CFPB) anno​unced that it settled allegations that a Kansas-based debt collector and its CEO engaged in unfair and deceptive acts and practices ​​in violation of the Consumer Financial Protection Act (CFPA) and Fair Debt Collection Practices Act (FDCPA).

The CFPB alleged that, between 2011-2016, the defendants used a network of debt collection companies that engaged in unlawful debt collection practices.  For example, the companies allegedly represented to consumers that the consumers owed more than they were legally required to pay and threatened consumers and their family members with legal actions.

The debt collector did not admit any liability, but agreed to a $3 million civil money penalty.  The corporate defendant will pay $500,000 and the CEO will pay $300,000, w​ith the remainder suspended. ​​​​​​The consent order also barred the corporate defendant and its CEO from engaging in certain future debt collection practices, and ​ordered that the companies submit a compliance plan and undergo ongoing monitoring.

The post CFPB Settles Unfair and Deceptive Practices Claims With Debt Collector appeared first on Consumer Finance Insights (CFI).