b'Debt Collection & SettlementIn 2021, Goodwin tracked 35 publicly-announcedKey Trendsstate and federal enforcement actions related to debt collection or debt settlement. This is a slight increaseHistorically, the CFPB and FTC are more active than from the number of debt collection and debt settlementother federal or state agencies in initiating and settling actions tracked during 2020 (32 actions). Thoughactions related to debt collection and debt settlement 2020s numbers were largely expected to be anservices. In 2020, the CFPB initiated 13 such actions, anomaly because of the number of actions attributablebut in 2021 the CFPB initiated only seven actions. to the Federal Trade Commissions Operation CorruptSimilarly, in 2020, the FTC initiated six enforcement Collector initiative, debt collectors and debt settlementactions targeting debt collection or debt settlement companies remained in the crosshairs. Overall, thoughcompanies in 2020, whereas the FTC initiated seven consistent with last years data and an increase fromsuch actions in 2021. Consistent with historical norms, 2019s numbers, the number of publicly announcedthe FTC actions primarily relied on alleged violations of debt collection and debt settlement actions in 2021 stillthe FTC Act, whereas the CFPB-initiated actions often represents a marked decrease from the average numberalleged unfair or deceptive acts in violation of the CFPA of such actions announced during the 2016-2018 timeand FDCPA. period (42 per year).One unexpected shift from 2019 and 2020 has been The total amount recovered by federal and statethe number of state enforcement actions relative agencies decreased from 2020. In fact, total recoveriesto actions announced by the CFPB and FTC. In have declined every year since Goodwin began tracking2019 and 2020, the CFPB was the most prominent debt collection and debt settlement enforcementenforcement actor in the debt collection and debt actions. In 2021, federal and state agencies securedsettlement space. In 2021, by contrast, states were approximately $45 million in civil money penalties,the most active enforcers, initiating nearly twice the restitution, and consumer relief as a result of settlementsnumber of enforcement actions as federal agencies. and court judgments (excluding suspended judgments).In fact, in 2021, state agencies were the most In 2020, in contrast, agencies secured over $63 millionprominent enforcers for the first time since Goodwin as a result of enforcement actions, and in 2016 agenciesbegan tracking enforcement statistics in 2016. State secured over $400 million through enforcement.agencies brought 21 actions in 2021, a substantial Though there were no significant federal rule changesincrease from 2020. California led the way, with eight during 2021 that impact the debt collection or debtenforcement actions, while state attorneys general from settlement industry, state regulators were active inDelaware, Georgia, Indiana, Massachusetts, Minnesota, this space. New York and California have proposedPennsylvania, Virginia, Washington, and West Virginia amending or amended their debt collection regulationsall also initiated or resolved enforcement actions with during 2021. In October, the New York DFS proposeddebt settlement or debt collection companies this year. amendments to its debt collection regulations thatGoodwins 2020 Year in Review predicted that in change the information required to be included in initial2021, enforcement in the debt collection market disclosures by debt collectors, add new limitationswould continue to focus on representations made to governing communications with debt collectors,consumers. That prediction has largely been proven and require new disclosures for time-barred debts.true. One such example is from February 2021, when Meanwhile, in November, the California DFPI proposedthe State of Delaware filed an administrative lawsuit modifying its debt collector licensing requirements,against Centerdon Group, Inc. n/k/a Hilvanim Group, effective December 31, 2021, to clarify, among otherInc., a debt-management services company, for terms, the definition of debt collector. allegedly using misleading advertising to target elderly 32'