23 DEBT COLLECTION + DEBT SETTLEMENT During 2017, Goodwin tracked 47 federal and state enforcement actions related to debt collection and debt settlement relief services—nearly matching the 50 tracked in 2016. Debt collection actions primarily focused on misleading or harassing communications (such as stating that consumers could face criminal sanctions if they failed to repay their debts) and collecting on debts with no attempt to verify they were actually owed. Debt settlement actions targeted false promises to reduce consumer debt, charging up- front fees, and misrepresenting affiliations with government agencies. The total number of actions tracked in 2017 represents a slight decrease in overall enforcement activity related to debt collection and debt settlement services. All told, these actions resulted in federal and state agencies securing just over $260 million in consent judgment and court judgments, representing a significant decrease in this category from the 2016 figure of over $400 million. The most active enforcement entities in this area were the state attorneys general, which is consistent with the general trend towards increased state enforcement over the past year. KEY TRENDS State attorneys general and agencies represented the most significant player in this space in 2017, having brought 26 out of the 48 enforcement actions, including two joint actions filed by state attorneys general and the FTC. These actions were often brought under state analogue fair debt collection practices acts or under general state unfair or deceptive acts and practices statutes, and tended to focus on companies engaged in the collection or settlement of debts owed on personal loans and payday lending. Debt collection and settlement of student loans also remained a frequently targeted activity. Federal enforcement was spearheaded by the FTC and the CFPB. The DOJ and U.S. attorneys were notably absent from the debt collection and settlement enforcement, as they brought only 2 actions in 2017, as compared to 11 in 2016. As in 2016, a large number of federal debt collection actions involved collections on debts allegedly not owed, as well as debts owed on student and payday loans. Notably, 2017 saw a significant decrease in actions concerning protections owed to military members under the SCRA. Last year, we wrote that 2017 would prove whether the DOJ intended to become a dominant actor in this space. 2017 appears to have preliminarily answered that question with a “no.” Instead, 2017 reinforced the significance of state attorneys general and state agencies in debt collection and settlement enforcement, while the DOJ avoided the area altogether. For more information, please visit www.lenderlawwatch.com or www.enforcementwatch.com