Links in “Debt Collection”
- Car Starter Interrupter: Privacy Intrusion or Smart Collection Strategy
A customer falls behind on a car payment, you turn on an app on your cell phone, see that the customer is parked at a mall, press a button, and immediately disable the car. Suddenly you get a call from your customer seeking to make a payment. This collection practice in operation now is considered by some to be a smart collection move, by others to be Wall Street's version of Big Brother. [9/26/14]
- FTC Collects from Abusive Debt Collectors
Pinnacle Payment Services, LLC, has been banned from debt collection activities and is subject to a settlement fee of over $9 million after engaging in abusive debt collection practices. This is one of many recent cases involving the FTC halting illegal and abusive practices related to debt collection. [9/24/14]
- Corinthian Colleges Collection Controversy
The CFPB has sued a for-profit chain of colleges, Corinthian Colleges Inc. for predatory student lending and collection schemes. Corinthian is alleged to have lured in students by misrepresenting career services and job prospects, after which the schools utilized illegal practices to collect on the incurred debt. The CFPB has provided a letter specifically to Corinthian students to provide guidance while pursuing the lawsuit. [9/17/14]
- Illegal Debt Settlement Fees Cost Payment Processor $7 Million
CFPB hits Global Client Solutions, a large payment processor, for $7 million for illegally collecting upfront fees from consumers for debt settlement companies. [8/26/14]
- Small Print of FDCPA Under Debate
The FTC and CFPB have filed an amicus brief for a case regarding the accurate interpretation of the Fair Debt Collection Practices Act. The agencies argue that the provision requiring a notice to be sent to consumers within five days after initial contact from a debt collector must be provided by each debt collector, not simply the first to make contact. The ruling in this matter could significantly affect policies and procedures for entities throughout the industry. Â [8/22/14]
- When Debt Collectors Go Bad
Minnesota debt collector gets shut down by the state, but apparently the credit sensitive information he had, such as social security numbers, bank account info, and dates of birth, was too tempting to resist. He would impersonate his victims to take over and steal directly from their accounts. He is looking at 175 months in prison. [8/22/14]
- Ignorance No Excuse for Firm Collecting on Payday Loans
Forster & Garbus, a debt collection firm in New York, has settled with the NY state attorney general who requires it to cease filing actions to collect on payday loans and to obtain written proof that loans aren't of the payday type before pursing collection. "Ignorance is no excuse," said the state's attorney general. [8/18/14]
- Why Banks Should Be Wary of the CFPB’s Actions Against ACE
Yes, ACE Cash Express is a payday lender, not a bank. But the $10 million settlement the CFPB came to with ACE portends some troubling trends that banks should keep an eye on, such as how the CFPB is using its UDAAP authority to apply the Fair Debt Collection Practices Act to all first-party debt collectors and how the CFPB continues to use enforcement actions to impose requirements rather than the "notice and comment" rulemaking process. [7/24/14]
- Is Debt Collection Too Harsh? Now Is the Time to Speak
The CFPB is taking written comments about the consumer experience in the debt collection industry. All written comments must be received by August 22, 2014 for consideration. [7/23/14]
- CFPB’s Complaint Database Blowing Up
CFPB's complaint database is rapidly expanding to include prepaid cards, debt settlement services, credit repair services and pawn and title loans. [7/22/14]
