On July 13, the Consumer Financial Protection Bureau (CFPB) announced 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, with 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.