CFPB Targets “Bad Check” Debt Collector

The CFPB issued an enforcement action against a debt collection operation for using threats of prosecution and jail time to get customers to pay debts for bounced checks. The debt collection agency also led consumers to believe that they must enroll in an expensive financial education program to avoid criminal prosecution. If approved, the enforcement action would impose a penalty of $50,000 on the debt collection agency. [3/31/15]