Links in “Debt Collection”

The CFPB alleges the nation's two largest debt buyers attempted to collect debt that was unsubstantiated or inaccurate, as well as filing lawsuits against consumers without having the documentation to prove their allegations. [9/10/15]

The CFPB's July complaint snapshot finds debt collection (with 31% of the complaints in July) in the top spot, credit reporting (25%) in the second spot, and mortgages (17%) rounding out the top three. Mortgages still hold the top spot overall, accounting for 28% of all complaints since the bureau opened in 2011. [8/26/15]

The CFPB announced a relief payment of $5.9 million, including a $500,000 penalty, in an enforcement action against a medical debt collection company for mishandling consumer credit reporting disputes and preventing consumers from exercising important debt collection rights. The announcement includes sound guidance for debt collectors on key practices and unacceptable debt collection actions. [6/19/15]

The CFPB provided another reminder of why its not a great idea to use aggressive debt collection methods. Against servicemembers, no less! Security National Automotive Acceptance Company was sued by the CFPB for exaggerating potential disciplinary action they would face, threatening to contact commanding officers to pressure repayment, and falsely threatened wage garnishment. [6/18/15]

The FTC shuts down three debt collection operations for such practices as sending texts that read "YOUR PAYMENT DECLINED WITH CARD ****-****-****-5463... CALL IMMEDIATELY..." without identifying themselves as debt collectors. They would also claim a "uniformed officer" was on the way to the consumer's home and they should "secure any large animals or firearms" before the officer arrived. "Legitimate debt collectors know the rules." [5/22/15]

The CFPB, the government's chief watchdog for protecting consumers from bad debt collection practices, may need to turn on itself after a former CFPB intern has found herself receiving demand notices from the CFPF for debts she claims she does not owe. Perhaps she should submit a complaint to the CFPB's complaint website? [5/15/15]

A panel discussion in New York City provides glimpses into what's coming up on the CFPB's radar, from whistleblower provisions, what non-bank industry is next, and where debt collection rules are heading. [4/29/15]

The Federal Trade Commission recently obtained a court order to halt an Aurora, Illinois debt collection scam. The debt collection agency, located in a western suburb of Chicago, was using intimidation tactics to trick consumers to pay loan debts they either did not owe, or did not owe to that particular company. [4/13/15]

A new look at an alternate script for Episode I released by George Lucas! In this rewrite, the Jedi order, renamed the CFPB, track down a Sith operation to collect non-existent debts from consumers using a calling center staffed by droids. [4/9/15]

The CFPB not only goes after debt collectors for allegedly fraudulent practices, it is also going after the payment processors of those companies. The agency says those companies "should have known" about the alleged violations, resembling the Department of Justice's Operation Choke Point strategy. [4/9/15]