Cfpb debt collection enforcement actions. Entities with anomalies (e.

Cfpb debt collection enforcement actions But the action also names a number of legitimate payment processors and a voice broadcasting service as defendants for “enabling” the debt collectors in their scheme. Here's an excerpt: Given the historic nature of the Consumer The CFPB is concerned about these harms and recently brought an enforcement action against a medical debt collector for numerous debt collection and cre dit reporting violations, including continuing to attempt to collect on bills that were not substantiated after a Examination Procedures Debt Collection CFPB March 2022 Procedures 1 Examination Procedures Debt Collection or enforcement actions ar e appropriate. Guidehouse tracks federal-level enforcement actions related to consumer finance from certain regulators. Consumers were sued for private student loan debt that the companies couldn’t prove was owed or was too old to sue over. ” As described in the FTC’s complaint filed in a Missouri federal district court against Midwest Recovery Systems, LLC and its owners, this practice, also referred to as “passive debt collection,” involves the placing of purported debts on consumers’ credit reports “As outstanding credit card debt approaches $1 trillion, the CFPB will be closely watching the conduct of the credit card industry. This report also includes activities conducted by the Federal Trade Commission (FTC) in 2022 in relation to debt collection. , for the defendants’ violations of the Fair Debt Collection Practices Act (FDCPA) and the Furnisher Rule (Regulation V promulgated by the CFPB under The Bureau’s annual report to Congress summarizes the Bureau’s activities to administer the Fair Debt Collection Practices Act (FDCPA) in 2022 as the primary federal regulator of the consumer debt collection industry. – The Consumer Financial Protection Bureau (CFPB) today published an edition of Supervisory Highlights describing the agency’s actions to combat junk fees charged by mortgage servicers, as well as other illegal practices. – Today, the Consumer Financial Protection Bureau (CFPB) released a special edition of its Supervisory Highlights describing a range of unlawful activities identified by CFPB examiners across student loan markets. CREDIT CARDS . 26, 2023) (court agreed with CFPB interpretation of servicer liability under the Fair Debt Collection Practices Act); Glover v. , for illegal student loan debt collection lawsuits. Read about the CFPB’s rulemaking to agency work on debt collection, including a joint FTC -CFPB Roundtable in June 2013 addressing data integrity and information flows. Browse court documents and other related materials to enforcement actions taken by the Bureau against entities or persons we believe have violated the law. CFPB Orders Wise to Pay $2. The initiative has been titled “Operation Corrupt Collector. System of Records Notice. The debt collection industry is substantially influenced by the credit cycle, which determines how much debt is available to collect. July 2022: CFPB research assessing the potential impacts of the NCRA changes 6. Recent steps by the three major credit On February 23, 2015, the Consumer Financial Protection Bureau (CFPB) announced two separate enforcement actions against Citibank, N. The rule will require certain nonbank entities to register certain – Today, federal and state agencies, including the Consumer Financial Protection Bureau (CFPB), released agency-specific action statements on tech capacity. Click here for more information and to register. 1 Bureau law enforcement actions In the News. The CFPB’s new debt collection rules will become effective on November 30, and debt collection will likely remain a The agency reported that it filed 29 enforcement actions against financial institutions and resolved six prior lawsuits. – Today, the Consumer Financial Protection Bureau (CFPB) took action against student lender Climb Credit and its investors, including 1/0 (“One Zero”), filing a proposed order, which if entered will require WASHINGTON, D. It couldn’t be clearer that the CFPB has put a bullseye on debt collection. February 2023: CFPB Market The FTC shares enforcement responsibility for the FDCPA with the CFPB, which provides an annual report to Congress about debt collection enforcement activities. , Fair Collections & Outsourcing of New England, Inc. Yesterday, it issued two new bulletins and five action letters for consumers to use when responding to debt collectors, and announced that its complaint system had begun taking debt collection complaints. 1 million penalty to resolve a lawsuit by the U. The matter resolved in an administrative proceeding or civil action and has ongoing compliance obligations. 1% were pending with the CFPB. the CFPB has initiated numerous enforcement actions related to On December 15, the CFPB issued a consent order against a Pennsylvania-based third-party debt collection company engaged in the business of collecting medical debts and furnishing consumer data to fraudulent, or had already been paid. Like many other debt collectors, the firms collect delinquent accounts and are paid based on how much money they collect. The rule focuses on debt collection communications and gives consumers more control over how often On September 29, the CFPB, in partnership with the FTC and numerous federal and state law enforcement agencies, announced a nationwide effort addressing “phantom debt collection” and abusive and threatening debt collection practices. These data do not reflect non-publicly available information about consumer relief and penalties resulting from enforcement actions. Dist. Yet they had a difficult time in winning a case or often even a successful motion. Most significantly, the bulletins not only address the conduct of debt The CFPB is the primary enforcer of the Fair Debt Collection Practices Act (FDCPA). In August 2023, the CFPB started accepting complaints about rental debt collection. On December 15, 2023, the CFPB announced an action against a medical debt collector, alleging that the collector illegally attempted to collect unverified medical debts Tempoe was also required to pay into the CFPB’s victims relief fund. For instance, in separate enforcement actions, the CFPB has ordered three of the Hanna law firm’s clients, JPMorgan Chase, Portfolio Recovery Associates, and all sizes, as well as larger participants in the debt collection, consumer reporting, and student loan servicing markets. ” The CFPB took action against Draper & Kramer Mortgage Corporation for discriminatory mortgage lending activities that discouraged homebuyers from applying to Draper for homes in majority-Black and Hispanic neighborhoods in the greater Chicago and Boston areas. First, since its inception, the CFPB has taken enforcement actions to protect consumers from On December 16, 2015, the Consumer Financial Protection Bureau (CFPB) announced an administrative enforcement action against debt collection firm EZCORP, Inc. This is the CFPB’s second public enforcement action against PHEAA this year. The report covers violations related to student loan refinancing, private lending and servicing, debt collection, and federal loan servicing. Operation Corrupt Collector encompassed more than 50 actions cha llenging some of the worst-of-the-worst debt collection tactics. On July 13, 2023, the CFPB and various state attorneys general, along with California’s Department of Financial Protection and Innovation, filed an adversary proceeding against a sales training company for deceptive marketing and debt Report addresses issues faced by borrowers with federal and private loans. For the The CFPB's annual report to Congress summarizes its activities, and those of the Federal Trade Commission (FTC), in administering the Fair Debt Collection Practices Act (FDCPA) in 2023. ” Report 3. Although the Consumer Financial Protection Bureau (CFPB or Bureau) voluntarily dismissed a slew of its own enforcement actions following Rohit Chopra’s removal as CFPB Director on January 31, 2025, the Bureau has affirmatively indicated The most frequent consumer debt collection complaints filed with the CFPB in 2023 were attempts to collect debts that actually were not owed, the bureau said in its annual Fair Debt Collection CFPB Enforcement Actions by chaxjube | Feb 5, 2016 | Axsmith Law, Axsmith Law Blog, bankruptcy, Christine Axsmith, Consumer Financial Protection Bureau, credit card fees, credit cards, debt, debt On March 13, the CFPB filed a brief in an Illinois federal court, reinforcing its arguments for a $43 million judgment against the founder of a now-defunct debt relief company. Alert CFPB’s Interim Final This report describes the federal government’s efforts to administer the Fair Debt Collection Practices Act (“FDCPA”) in 2015. Key Steps to Responding to a The Consumer Financial Protection Bureau on Friday ordered Commonwealth Financial Systems, a debt collection agency specializing in medical debt, to shut down as a result of what CFPB • Creditors and “Debt Collectors” under continuous scrutiny • CFPB supervises “larger participant’ debt collectors, and FTC and CFPB regularly investigate and bring enforcement actions • Supervision and enforcement efforts: Recent examinations of debt collectors found numerous violations, including harassing individuals with allegedly unpaid medical bills and telling others that they were responsible for debts that were incurred due to identity theft. , and In re DriveTime – suggest that the CFPB is turning its attention to original lender or "first-party" collection practices to collect debt, including those used by retail merchants and other lenders. Later that year, the CFPB rejected an effort by PHEAA to evade WASHINGTON, D. Consumers will not need to take action at this time to obtain redress. “Others” consist of certain relevant Annually, the firms attempt collection on approximately 700,000 debts totaling more than $500 million. Rule details Issue date MAY 07, 2019. Douglas MacKinnon and Mark Gray were accused in 2016 of operating debt collection companies in Buffalo, N. 5. View bulletin. In early 2023, CFPB released a bulletin demanding student loan servicers halt and return unlawful debt collection on loans discharged through bankruptcy. The fund enables the CFPB to provide financial relief in cases where direct compensation from the violating company is not possible. The CFPB ordered Security Group Inc. Comments close Citibank Sold Credit Card Debt with Inflated Interest Rates; Debt Collectors for Citibank Altered Affidavits. The report incorporates information from the FTC’s most recent annual letter to the CFPB describing its 2021 activities in the debt collection market, including information about the FTC’s enforcement actions involving collection practices The previously announced CFPB final rules under Fair Debt Collection Practices Act (FDCPA) go into . The company also provided inaccurate Prepared Remarks of CFPB Director Richard Cordray on the JPMorgan Chase Debt Collection Enforcement Action Press Call. Compiled in this compendium are many of the guidance documents released under CFPB Director Rohit Chopra, from October 2021 through January 2025. Goodwin tracked 16 enforcement actions related to debt collection and settlement in 2024, which represents a decline from the 22 such actions in 2023. – Today the Consumer Financial Protection Bureau (CFPB) filed a federal complaint against EOS CCA (EOS), a Massachusetts debt collection firm, for reporting and collecting on old cellphone debt that consumers disputed and EOS did not verify. As of July 9, 2014, CFPB enforcement actions have resulted in $4. – Today, the Consumer Financial Protection Bureau (CFPB) banned private dispute resolution platform Ejudicate from arbitrating disputes about consumer financial products after the company misled student borrowers about its neutrality and initiated sham arbitration proceedings. States Encouraged by CFPB to Enforce Federal Consumer Financial Law. ” The CFPB has taken a range of actions to address unfair and coercive medical debt collection and practices, including issuing guidance to prevent families from being targeted by illegal medical debt collection tactics and proposing a rule to ban medical bills from people's credit reports. , violated the Consumer Financial Protection Act of 2010 WASHINGTON, D. , its affiliates, and two debt collection law firms, for . On July 27, 2022, If you have a question about the CFPB's rules and the statutes we implement, please first review the regulations as well as the available guidance and In 2015, the CFPB took two actions against the bank – one for discriminatory auto loan pricing, which was a joint CFPB and U. In total, the CFPB’s enforcement ($19. 6 billion in relief for roughly 15 million consumers harmed by illegal practices. Featured topic. Congress has also authorized the CFPB to promulgate rules and regulations to implement the FDCPA. "We were The CFPB supervises banks and credit unions with more than $10 billion in assets, as well as many nonbank firms in markets such as credit reporting, debt collection, and mortgages. Our actions today are distinct from that rulemaking, but both are efforts to address certain common problems, such as data integrity, the substantiation of debts, and collection of time-barred debt. ET, we will present a webinar on the CFPB’s final collection rule. , that inflated consumers’ debts, attempted to collect debt that consumers weren’t obligated to pay, falsely threatened consumers with legal action, and impersonated government officials and law enforcement. 5 Million in Refunds and Penalties. The CFPB alleges that Fair Collections & Outsourcing (FCO) violated federal law by failing to establish or implement reasonable written policies and procedures regarding the accuracy and integrity of Browse Ask CFPB; Rules & Policy Back Rules & Policy Overview / Enforcement Actions Encore Capital Group, Midland Funding, Midland Credit Management, and Asset Acceptance Capital Corp. of settlements: 10 No. Let’s hope Ross Commissioners Rohit Chopra and Rebecca Slaughter issued statements about the settlement in which they urged the FTC to more closely cooperate with the CFPB in debt collection enforcement actions. ) 3) Submit a complaint with the CFPB. 6 billion) and supervisory work. This article explains these actions involving contracts for deed, mortgage and student Over the last year, the CFPB has increased its monitoring of the auto lending market. A. In 2021, the CFPB only brought one new enforcement action under the FDCPA. ” and instead routed some individuals to the bank’s collections department. By enforcing rules and punishing violations, the CFPB promotes fair treatment of consumers. As discussed below, the CFPB's position in these enforcement actions implies that the final rules may require debt collectors to review the original, account-level documents before seeking to collect on a debt. Full SORN. Post-order/Post-judgment. Consumer Financial Protection Bureau accusing it of running a debt In 2019, the CFPB sued Forster & Garbus alleging that, from 2014 through 2016, fewer than a dozen attorneys at Forster & Garbus filed more than 99,000 debt-collection lawsuits, while having documents to support only a fraction of those debts. Read today’s advisory opinion. 1 This report provides a background on the debt collection market; contains an overview of Enforcement Actions Enforcement by the Numbers Investigatory Authority In addition, on November 30, 2021, the CFPB’s new Debt Collection Rule became effective. 1% of the debt collection complaints were pending with the consumer and less than 0. – The Consumer Financial Protection Bureau today took action against the National Collegiate Student Loan Trusts and their debt collector, Transworld Systems, Inc. The states include Arizona, California, Colorado, Connecticut, Florida, Idaho This report provides a background of the debt collection market; contains an overview of consumer complaints submitted to the CFPB in 2014; summarizes the Bureau’s supervisory activities in the debt collection market; describes the Bureau’s and the Commission’s enforcement actions; presents the CFPB’s and FTC’s consumer education and In a joint annual report to Congress released Tuesday with the Federal Trade Commission about debt collection practices, the CFPB said it had initiated four enforcement actions last year, had resolved one case and has five others pending related to unlawful debt collection practices. On November 13, 2020, from 12:00 p. View more Back to top . Both delinquencies on consumer debt and collection recovery rates (the percentage of the debt that a collection agency can recover) are generally This action is part of the Bureau’s work to address illegal debt collection practices across the consumer financial marketplace, including companies who sell, buy, and collect debt. If you have had a problem with a consumer financial product or service, including improper debt collection in the workplace, you can submit a complaint The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s debt collection activities in 2021. History for this System of Records Notice. Consumer Debt and Collections. The CFPB initiated WASHINGTON, D. Additionally, the CFPB has released more research indicating the continued impact of medical debt on consumer credit reports This action continues the Bureau’s work to address illegal debt collection practices across the consumer financial marketplace, including companies that sell, buy, and collect debt. The Bureau alleges this conduct violated the Consumer Financial State debt collection examinations are no picnic. Department of Justice action, and the other for illegal credit card practices. • Debt collection • Enforcement With regard to the CFPB’s debt collection rulemaking, in her opening message, Director Kraninger only references the Bureau’s May 2019 proposal. 5 million for illegally accessing its customers’ credit reports and opening checking and savings Debt collection: Director Chopra also highlighted debt collection as an area of focus in his Senate testimony. State regulators have concurrent authority to enforce federal law, including the FDCPA and UDAAP, especially if federal regulators are eliminated. Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions WASHINGTON, D. Specifically, Major Five federal regulators consist . Date published in the Federal Register MAY 21, 2019. and $136 million in penalties and payments to the CFPB and states. Under the Consumer Financial Protection Act (CFPA), the CFPB, state attorneys general, and state regulators have the authority to take enforcement action against institutions that violate federal consumer financial laws, including the CFPA’s prohibition of deceptive acts or practices and the Fair Debt Collection Practices Act. 1 This report provides a background on the debt collection market; contains an overview of Read about the Consumer Financial Protection Bureau's (CFPB) enforcement action against Commonwealth Financial Systems, a debt collection agency, which resulted in its immediate shutdown. 4 billion) has resulted in . Bank. The CFPB further alleges that Forster & Garbus falsely represented to consumers that attorneys were EOS to Pay More than $2. The initiative, WASHINGTON, D. 1 ($1. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has the authority to take action against institutions violating consumer financial laws, including engaging in deceptive acts or practices or violating the Fair Debt Collection Practices Act, which prohibits abusive, deceptive, and unfair debt Enforcement Action. Georgia law firm Frederick J. Last week, the CFPB took action to resolve its lawsuit against one of the nation’s largest The CFPB will enforce the order’s redress requirements to ensure affected Cash App users receive redress. The CFPB and other enforcement agencies will take action Enforcement Action. ) The CFPB also has taken enforcement actions when institutions have violated the Electronic Transfer Fund Act’s implementing Regulation E or engaged in related deceptive or abusive practices. Industry members who sell, buy, and collect debt would be well served by carefully reviewing the terms of these orders, as well as our recent supervisory actions . Key actions in 2023. The Consumer Financial Protection Bureau (CFPB) today issued a consent order against a debt collector and its owner for harassing thousands of consumers, falsely threatening them with legal action. Although first-party collections are largely exempt On December 15, the CFPB issued a consent order against a Pennsylvania-based third-party debt collection company engaged in the business of collecting medical debts and furnishing consumer data to consumer The CFPB’s Role in Debt Collection. Among the terms of the consent order filed today, Wells Fargo must: Pay $410,000 in consumer refunds: Wells Fargo must provide at least $410,000 to compensate consumers for illegal late fees Nursing facilities that violate the NHRA’s requirements may be subject to enforcement action by state agencies and by CMS. The CFPB is also exploring ways to enhance the availability of data about the market. The CFPB has made clear that addressing illegal debt collection practices is one of The Consumer Financial Protection Bureau is expected to release a detailed road map on new rules for the debt collection industry Thursday, and experts say the recent string of bureau enforcement Read the CFPB’s 2022 action against U. These practices potentially affected the credit scores of thousands of Director Chopra further made clear that “CFPB orders are not suggestions” in the Bureau’s 2023 action against debt collector giant Portfolio Recovery Associates when it violated a 2015 order. According to the report, with Threatening consumers with potential legal actions and initiating debt collection lawsuits without offering or possessing required documentation: Enforcement Action. The original complaint was filed on September 20, 2020 in the U. S. About the CFPB’s Victims Relief Fund. The Consumer Financial Protection Bureau (CFPB) yesterday filed a proposed settlement to resolve a lawsuit against a debt collection enterprise and its owner. Most recently, in 2023, the CFPB ordered Atlantic Union Bank to pay $6. Further, under the Trump Administration’s leadership the Bureau has not announced a single dollar of monetary relief in any of the high-volume complaint areas of credit reporting, debt CFPB dismisses enforcement action against Solo Funds. The CFPB issued a proposal in April 2021 that, if finalized, would have extended the effective dates to January 29, 2022. Chase was also found to have used robo-signed documents in its debt-collection lawsuits and sworn statements to debt buyers, resulting in unfair and deceptive sworn documents practices. This rule clarifies how debt collectors can communicate with you, including what information they’re required to provide at the outset of collection about the debt, your rights Observers said the enforcement actions are consistent with the suggestion from policymakers that debt collectors should suspend aggressive actions as consumers cope with the fallout from the coronavirus pandemic. LEXIS 171974, at *11 (D. 2. Some of the enforcement actions the CFPB took included: The recent CFPB enforcement actions may serve as a preview for the regulations that the CFPB may impose in the future. The CFPB’s investigation found that the firms engaged in illegal debt collection practices. CFPB Orders Honda’s Auto Financing This includes a wide range of entities, such as debt collectors, consumer lenders, and others not affiliated with traditional banks but engaged in consumer financial activities. ” In addition, the CFPB’s final debt collection rules, which become effective November 30, 2021, prohibit reporting debts to consumer reporting agencies until after a debt collector attempt to make contact with the consumer. Of those 16, nine were brought by the Federal Trade Commission (FTC) or CFPB, five were initiated by state agencies, and two were joint federal-state efforts. States Encouraged by CFPB to practices; the CFPB collected $13 million in fines, and took seven enforcement actions involving egregious debt collection violations; the FTC’s enforcement actions resulted in 47 businesses and individuals being banned from the debt collection business. • Consider methods to comply while placing facts in positive light. Understand how the CFPB’s Debt Collection Rule can help you. Navigating CFPB Examinations: Best Practices for Success. One of The CFPB issued its final rule, titled the Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders Final Rule, on June 3, 2024. ENFORCEMENT HIGHLIGHTS As of July 15, 2015, CFPB enforcement activity has resulted in over $10 billion in relief for more than 17 Enforcement Action. For instance, the CFPB recently invited public comment on a proposed regulation that would aim to, among other Already in 2024, the CFPB has issued 18 interpretations, rules, and enforcement actions that will aid private consumer litigation. The CFPB will distribute more than $191. The agency was joined by the Federal Trade Commission and more than 50 federal and state law enforcement partners in the effort. Moreover, the CFPB has proposed regulatory changes aimed at On March 19, 2021, the Consumer Financial Protection Bureau (CFPB) released its annual report to Congress regarding its administration of the Fair Debt Collection Practices Act (FDCPA). and illegal debt collection. (EZCORP), for allegedly engaging in Bite 3: CFPB Shuts Down Medical Debt Collector. The rule requires debt collectors to provide, at the outset of collection communications, detailed disclosures about the consumer’s debt and rights A new CFPB enforcement action filed in federal district court in Atlanta and unsealed last week targeting an alleged debt collection scam names as defendants not only the debt collectors and their individual principals but various companies alleged to have been “service providers” to the collectors, including payment processors. Posted on February 21, 2025 February 21, When collecting on debt, the Bureau alleges that SoLo has also misrepresented to consumers that it will furnish negative information to credit bureaus when, in fact, it never did. Lenders, banks, and other entities that broke the law were ordered to pay approximately $3. WASHINGTON, D. Where appropriate, the CFPB required debt collectors to provide consumer redress and undertake remedial and corrective actions. 5 Million for Illegal Remittance Practices JAN 30, 2025. CFPB Orders Honda’s Auto In the first action, the CFPB ordered Citibank to provide nearly $5 million in consumer relief and pay a $3 million penalty for selling credit card debt with inflated interest rates and for failing to forward consumer payments promptly to debt buyers. Acting CFPB Director Mick Mulvaney has indicated that debt collection Through regulatory guidance and enforcement actions, the CFPB and FTC are demonstrating that first-party debt collection practices will be held to many of the standards contained in the FDCPA. If entered by the court, the order would require Draper to: Enforcement Actions is issuing this bulletin to clarify the contours of that obligation in the context of collecting consumer debts. Payday lending Debt collection Enforcement actions Mick Mulvaney CFPB News & Analysis. Read today’s complaint. to pay $5 million for making illegal threats, including that consumers could go to jail. 1 Consumer Debt . The CFPB report also includes sections on debt collections complaints, results of examinations of debt collectors publicly reported in Supervisory Highlights, and enforcement actions involving alleged debt The Eleventh Circuit released an Opinion on April 21, 2021, related to the Fair Debt Collection Practices Act (FDCPA), which is a must-read for all in the business of servicing loans or collecting debts. ” CFPB Enforcement Actions – Fighting Pandemic Violations The CFPB’s enforcement action against SNAAC highlights that debt collection and auto lending practices remain CFPB priorities. — Today, the Consumer Financial Protection Bureau (CFPB) announced an enforcement action against a medical debt collection company for mishandling consumer credit reporting disputes and preventing consumers from exercising important debt collection rights. — Today, the Consumer Financial Protection Bureau (CFPB) announced an enforcement action against a nationwide debt collection operation and its chief executive officer for using deceptive threats Rental Debt Collection. Notes: These data reflect publicly available information for enforcement actions as of the date of publication. JUL 08, 2015. Private actions are also going to sky rocket and remember there is no more deference to agency interpretation under Loper Bright. The agencies found that Chase engaged in unfair refund for illegal debt collection practices: The CFPB, along with authorities in 47 states and D. (Commonwealth), a Pennsylvania-based third-party debt collection company that collects past-due medical debts and furnishes information about consumers to consumer reporting agencies (CRAs). As Lender Law previously reported, the first On May 23, 2022, the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (NY AG) announced that they have settled a case filed against six New York debt collection companies and affiliated individuals, resolving a one-and-a-half year enforcement action. Three of the enforcement actions resolved in 2019 (including one that was filed in 2019) involved “phantom debt collection. The CFPB has launched multiple high-profile actions against major debt collectors. The Bureau found The CFPB's advisory opinion explains that a covered debt collector who brings, or threatens to bring, a foreclosure action to collect a time-barred mortgage debt violates the Fair Debt Collection Snap Shot of CFPB Enforcement Actions Involving Debt Collection No. in monetary compensation, principal reductions, canceled debts, and other consumer relief. During 2023, the CFPB continued to rely on the FDCPA to bring enforcement actions against debt collectors for allegedly unlawful debt-collection practices. —The Consumer Financial Protection Bureau (CFPB) has released a guidance aimed at curbing unlawful medical debt collection activities. The CFPB earlier filed a lawsuit against this web of investment vehicles alleging, among other things, that the National The CFPB is tasked with creating rules and taking enforcement actions to protect consumers from unfair, deceptive, or abusive practices by a wide range of businesses and other institutions. Dubbed “Operation Corrupt Collector,” this recent crackdown includes the filing of more than 50 enforcement actions brought by the CFPB, the FTC, other federal agencies, and 16 different states against debt collectors allegedly engaged in illegal practices. Debt collectors who violate the FDCPA and FCRA may be subject to enforcement actions by the CFPB and other federal and state government agencies, as well as to private actions brought by consumers. The CFPB and FTC play differing but complementary roles in the regulation of the consumer data industry and regulatory enforcement of the legal standards established under the FCRA and other relevant legislation. It also resolved two FDCPA lawsuits in 2021. The Bureau’s advisory opinion states that medical debts disproportionately impact groups like young adults, low-income individuals, Black and Hispanic Two recent Consumer Financial Protection Bureau (CFPB or Bureau) enforcement actions – CFPB v. First-party debt collectors should review and update their policies and procedures to consider conduct prohibited by the FDCPA—paying Snap Shot of CFPB Enforcement Actions Involving Debt Collection No. collectors for illegal debt collection practices. Bureau and the Commission work closely to coordinate debt collection enforcement actions and other matters related to debt collection. The CFPB has the authority to bring actions under the Federal Debt Collection Procedures Act against defendants who engage in fraudulent transfers to avoid paying a debt owed to the CFPB. Under the Consumer Financial Protection Act, the CFPB has the authority to take action against institutions violating consumer financial laws, including the Equal Credit Opportunity Act and engaging in unfair, deceptive, or abusive acts and practices. of the CFPB, DOJ, FDIC, FRB, and OCC. The debt collection agency’s allegedly improper practices state, or local agencies to investigate the wrongdoing and coordinate the enforcement action. , took action against JPMorgan Chase to permanently stop all Enforcement While the CFPB is often tarred with the brush of rulemaking by enforcement, Biden’s CFPB took fewer enforcement actions during his term (96) than Trump in his first term (114) or Obama in his second term (161) (although the pace of agency enforcement action is believed to have slowed while the CFPB awaited the results of WASHINGTON — The Consumer Financial Protection Bureau (CFPB), along with the Federal Trade Commission and more than 50 federal and state law enforcement partners, today announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices. The CFPB's Examination The CFPB’s $1. Debt Collection. g. , two medical debt collection law firms, and their president, Harry A. The Enforcement Actions Enforcement by the Numbers Investigatory Authority CFPB Debt Collections Operations Study. 2024) (court agreed with CFPB that states can bring concurrent enforcement actions under the Consumer Financial Protection Act); Rivera v. District Court for Update (July 30, 2021): The Consumer Financial Protection Bureau (CFPB) announced on July 30, 2021, that the two final rules issued under the Fair Debt Collection Practices Act (FDCPA) will take effect as planned, on November 30, 2021. The second action is against both Citibank and two debt collection law firms it used that The charts below describe federal-level enforcement actions for the past five quarters (Q1 2021 – Q1 2022). On November 30, 2021, the Debt Collection Rule became effective. (In December 2020, the FTC announced a settlement of its first enforcement action targeting “debt parking. Where appropriate, the CFPB took enforcement actions against debt collectors. March 1, 2022: CFPB “Medical Debt Burden in the U. As the CFPB has advised, the FDCPA prohibits debt collectors – including mortgage servicers acting as debt collectors – from charging borrowers fees unless there is a law affirmatively allowing them or the amount is expressly authorized by the agreement Director Chopra delivered remarks on the CFPB’s enforcement action against Navient. This guidance specifically targets Debt collection falls under the CFPB’s regulatory authority, making it one of the agency’s key areas of focus. . Among different developments related to debt collection in the past year, five are particularly noteworthy. We urge nursing On July 30, 2021, the Consumer Financial Protection Bureau (CFPB) announced that two final rules issued under the Fair Debt Collection Practices Act (FDCPA) will take effect as originally planned, on November 30, 2021, thereby scrapping a proposed delay that would have extended the effective dates to January 29, 2022. Industry participants’ lack of reliance on medical debt. – The Consumer Financial Protection Bureau (CFPB) took action against medical debt collector Phoenix Financial Services (Phoenix) for numerous debt collection and credit reporting violations. The Biden Administration has brought new leadership and priorities to the CFPB, marked by an immediate and renewed focus on consumer protection through The CFPB is taking a number of steps to identify specific individuals responsible for repeat offenses. 8 million consumers. Does not include non-public supervisory actions. – The Consumer Financial Protection Bureau today took two separate actions against Citibank for illegal debt sales and debt collection practices. Consumer banking. – December, 15, 2023 – – The Consumer Financial Protection Bureau (CFPB) today took action against a medical debt collector, The CFPB’s enforcement work in 2023 and what lies ahead JAN 29, 2024. For example, two Bureau consent orders have previously detailed highly specific requirements for the documents that must be in the law firm’s possession, the documents the attorneys must review A lawsuit filed late last month by the Consumer Financial Protection Bureau (CFPB) accuses a network of companies of engaging in sham collection operations targeting “phantom” debts. Newsroom CFPB Orders Wise to Pay $2. Discover the implications of This enforcement action is the result of work started by the Office of the Comptroller of the Currency (OCC), which the CFPB joined. 76 FR 45757; 79 FR 6190; 83 FR 23435; 85 FR 3652 WASHINGTON, D. MORE FROM AMERICAN BANKER. These enforcement actions are just the latest of many recent debt collection related actions taken by the CFPB. 42 million consumers and to pay a $25 million penalty for The Consumer Financial Protection Bureau (“CFPB” or “Bureau”) or other agencies are faced with a choice: either pursue alleged violators one-by-one on the basis of their own acts, or impact hundreds or thousands of entities in a single action by pursuing the payment processor (or other service provider) upon which those other companies rely. CFPB Debt Collection Consumer Survey. Overall, the CFPB reflects a consolidation of consumer financial protection authority that had previously existed across many federal agencies, and that, in many respects, continues to exist in those agencies. Under the Dodd-Frank Act, the CFPB has the authority to take action against institutions engaging in unfair or deceptive practices. , via complaint volume, high fee revenue, or low penetration of vulnerable communities) will be targets for CFPB supervision and/or enforcement. CFPB to Launch Registry of Nonbank Enforcement Actions. 8 billion distribution to consumers harmed by the credit repair companies is a result of the agency’s enforcement action. The CFPB has taken a range of actions to address unfair and coercive medical debt collection and practices, including proposing a rule to ban medical bills from people’s credit reports. The CFPB supervises entities such as banks, lenders, credit reporting agencies, and debt collection companies. If you have questions about receiving The Bureau has initiated enforcement actions against collectors for pursuing unverified debts and unlawfully threatening legal action. The Public enforcement actions involving credit reporting and debt collection, which saw the highest complaint volumes in recent years have dropped significantly. The CFPB also estimates that Enforcement Action. California and together comprise the largest debt collector and debt buyer in the United States, with annual revenue exceeding $1 billion and annual net WASHINGTON, D. Throughout its long-term relationship with PRA, the CFPB uncovered a litany of ongoing misconduct related to persistently collecting bad debt and fraudulent, or had already been paid. What to Know about CFPB Supervision and Examination. The CFPB and the Federal Trade Commission (FTC) share government enforcement responsibility for the FDCPA, and work together to coordinate their respective efforts relating to debt collection. and its subsidiaries, Fair Collections & Outsourcing, Inc. Canadian regulators launch review of sales practices in bank branches . CFPB guidance documents have provided clarification on the best interpretations of the federal consumer financial laws for those tasked with enforcing them, as well as the courts. The CFPB and other enforcement agencies will take action against debt collectors that violate the rights of patients. D. The rule clarifies how debt collectors can communicate with you, including what information they’re Find information about specific court cases and administrative proceedings that we’ve brought addressing violations of laws we enforce. Through supervision and enforcement actions, the CFPB has returned billions of dollars to consumers and holds companies accountable for their illegal conduct. The chart below depicts federal-level enforcement actions for the last five quarters (Q1 2021 – Q1 2022). Sept. How to Prepare for and Survive a CFPB Examination. In the first action, the CFPB ordered Citibank to provide nearly $5 million in Agencies and debt buyers in the midst of any investigations and enforcement actions will enjoy a reprieve until and unless the CFPB lifts the freeze on such activities. [Click&type] applies only to the collection of obligations or alleged obligations of consumers to pay money arising out of trans actions in which the According to the CFPB, “Carrington illegally furnished information to consumer reporting companies that certain borrowers’ accounts were delinquent, rather than current, even though the homeowners’ accounts were currently entering forbearance. May 2022: CFPB released a circular highlighting the implications of nursing home debt collections 5. Y. – Today the Consumer Financial Protection Bureau (CFPB) took action against the nation’s two largest debt buyers and collectors for using deceptive tactics to collect bad debts. Enforcement Action. Under the CFPA, the CFPB has the authority to take These sales, in turn, led to improper collection activity, which the CFPB and the states found constitutes assistance in deceptively collecting debt. Consumers can submit complaints about auto loan products, and about other financial products and services, by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). There was a decrease in enforcement actions from Q2 2021 to Q4 2021 and an increase in enforcement actions from Q4 2021 to Q1 2022. 6 million In 2023, the CFPB filed 29 enforcement actions and resolved through final orders 6 previously-filed lawsuits. Key Enforcement Actions by the CFPB. In addition to the extensive discussion of complaints, the report also included a summary of debt collection issues uncovered in CFPB supervisory examinations as well as debt collection enforcement Tens of millions of people are pursued by debt collectors for medical bills, and the CFPB has described the significant evidence, including reports from consumers themselves, that the collection, furnishing, and WASHINGTON, D. The inconsistent nature of medical debt furnishing and collection practices, often through third-party debt collectors, “limits the value of such information for credit underwriting,” according to the CFPB. 9 million from the victims relief fund in total payments to harmed consumers. 07 billion to compensate harmed consumers and pay approximately $498 million in civil money penalties. – The Consumer Financial Protection Bureau (Bureau) issued today a final rule to implement Fair Debt Collection Practices Act (FDCPA) requirements regarding certain disclosures for consumers. (Debt collectors are technically still permitted under the law to collect the debt even if they can’t contact you, although that won’t always happen. – Today, the Consumer Financial Protection Bureau (CFPB) and the Justice Department (DOJ) took action to end Fairway Independent Mortgage Corporation’s illegal mortgage lending discrimination On September 5, 2024, the Consumer Financial Protection Bureau (CFPB) released its annual report on debt collection, drawing attention to a range of activities with respect to medical and rental debt collection that the CFPB describes as “aggressive” and “illegal. Dollar figures are approximate and do not include American Express settlement. As part of its crackdown on phantom debt collection, the Commission led Operation Corrupt Collector, a coast-to-coast debt collection sweep by the FTC, three federal agencies, and partners from 16 states. " Also in June, the CFPB took an enforcement action against Phoenix Financial Services for illegal medical debt collection and credit reporting practices. Today, the Consumer Financial Protection Bureau (CFPB) released a special edition of its Supervisory Highlights describing a range of unlawful The case involves a dispute between the CFPB and multiple National Collegiate Student Loan Trusts (the Trusts) entities involved in acquiring, pooling, and securitization of private student loan debts. – The Consumer Financial Protection Bureau (Bureau), in partnership with the New York Attorney General (NYAG), today filed suit against a network of five different companies based outside of Buffalo, New York, two of their owners, and two of their managers, for their participation in a debt-collection operation using illegal methods to collect The dispute dates back to 2017, when the CFPB filed a lawsuit against the trusts. 1 At the Consumer Bureau, we are focused on creating a transparent and fair market and On October 1, the CFPB issued an advisory opinion highlighting that debt collectors engaging in certain practices with respect to the collection of medical debts are strictly liable under the FDCPA and Regulation F. March 18, 2022: NCRAs announce medical debt reporting changes 4. Since its founding, the bureau Federal and state regulators have long focused on debt collection practices, but recent news and trends— including new Consumer Financial Protection Bureau (CFPB) leadership, increased state regulatory powers, and Covid-19 pandemic enforcement developments—will make it harder for third-party debt collectors. , and FCO Worldwide, Inc. JPMorgan Chase Bank, 2023 U. 2 million for, among other overdraft violations, improperly enrolling customers in 3 CONSUMER FINANCIAL PROTECTION BUREAU . The Consumer Financial Protection Bureau is announcing today that, with respect to the Payday, Vehicle Title, and Certain High-Cost Installment Loans Regulation, it will not prioritize enforcement or supervision actions with CFPB Resolves Flurry of Enforcement Actions in Biden's Final Week The Consumer Financial Protection Bureau filed one lawsuit and reached five settlements last week, totaling nearly $206. m. The CFPB contends that the company’s founder controlled its deceptive telemarking operations and should be held personally liable under the Telemarketing Sales Rule (TSR) and the Medical debt collector ignored consumer disputes of unverified debts. This includes investigating potential violations of federal consumer financial laws, pursuing administrative or civil enforcement actions, and making appropriate referrals to other federal or state agencies. Enforcement Actions Enforcement by the Numbers Resources to help industry participants understand, implement, and comply with the Debt Collection Rule. This report also highlights consumer protection issues in On December 15, 2023, the Bureau issued an order against Commonwealth Financial Systems, Inc. 07 billion to consumers and pay $498 million in penalties. ”The report underscores the CFPB’s continued focus on consumer debt collection practices – specifically Auto Finance, CFPB, Consumer Protection, Debt Collection or Settlement, Enforcement Actions On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a national bank, resolving 2. The CFPB was established in 2011 as a response to the 2008 financial crisis, with a mandate to oversee financial institutions and protect consumers from As of March 1, 2024, less than 0. What does the CFPB Rule (Regulation) V Do? This rule introduces significant changes regarding how medical debt is handled in credit decisions. The CFPB’s enforcement program is heavily focusing on stopping repeat offenders, including by bringing multiple This is the CFPB’s second public enforcement action against the National Collegiate Student Loan Trusts. 2 million — suspended due to the As of December 2024, the CFPB had secured over $21 billion in relief for consumers through debt cancellation, reductions, or monetary compensation resulting from its enforcement actions. They also imply the agency could take a tougher approach to punishing firms for "unfair, deceptive, or abusive acts and practices. To increase transparency of the Already in 2024, the CFPB has issued 18 interpretations, rules, and enforcement actions that will aid private consumer litigation. Exam Date: [Click&type] Exam ID No. These statements reflect concrete actions to increase tech capacity, including actively hiring technologists – which will help enforce the laws on the book and design remedies that work This is the CFPB’s second enforcement action against TD Bank. These include Bureau and the Commission work closely to coordinate debt collection enforcement actions and other matters related to debt collection. 5 Million for Illegal Remittance Practices CFPB Takes Action to Address Illegal Debt Collection Practices by the National Collegiate Student Loan Trusts JAN 16, 2025. Document details Publication date JUL 10, 2013 CFPB Takes Action to Address Illegal Debt Collection Practices by the National Collegiate Student Loan Trusts Debt Collection Fraud & Scams Money Topics / Enforcement Actions Status definitions. Pompan, partner and co-chair of the Consumer Financial Services Practice Group, and Makalia Griffith, associate, authored "CFPB and FTC Debt Collection Update" in the spring issue of RMAI Insights Magazine, the official magazine of the Receivables Management Association International. The CFPB Targets FinTechs and Other Nonbanks for Supervision and Examination. C. Hanna & Associates has agreed to pay a $3. Debt Collection Fraud & Scams 29 state attorneys general announced a separate action against Navient that delivered debt cancellation for many borrowers, further underscoring the widespread nature of the company's harmful practices. Those orders require lawbreakers to pay approximately $3. In 2020, the CFPB ordered TD Bank to provide an estimated $97 million in restitution to about 1. , Works & Lentz of Tulsa, Inc. to 1:00 p. From 2009 to 2013, when consumers defaulted on credit card debts, Chase tried to collect by contacting consumers, filing collections lawsuits The issue of meaningful attorney involvement has been a key dimension in the CFPB’s enforcement actions brought against debt collection law firms. Medical debt collection practices. Both commissioners commented that the CFPB’s authority to obtain civil penalties would allow victims to qualify for monetary redress from the CFPB The Consumer Financial Protection Bureau announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices. The annual report , which was released today, highlights both agencies’ efforts to stop unlawful debt collection practices, including law enforcement, education and public outreach On December 9, the CFPB entered into a consent order with a debt collection agency for alleged unlawful student loan debt collection practices against defaulted borrowers. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the CFPB has increased enforcement efforts to take action against nonbank financial institutions for violations of the Fair Credit Reporting Act and Fair Debt Collection Practices Act. On September 25, 2019, the Bureau filed a complaint in federal court in the District of Maryland against Maryland-based debt collectors FCO Holding, Inc. CFPB Bulletin 2013-07. Entities with anomalies (e. In recent separate enforcement actions, the CFPB has ordered large banks, credit card issuers, debt buyers, and firms to overhaul their debt collection practices Jonathan L. Freedom Stores, Inc. Bank $37. Fix customer service and investigate disputes: To ensure that the misconduct does not recur, the order requires Block to set up 24-hour, live-person customer service. The CFPB’s lawsuit against PHEAA seeks a stop to alleged unlawful conduct, redress for affected consumers, the imposition of a civil money penalty paid into the CFPB’s victims relief fund, and other relief. Full compendium enforcement actions. (collectively, FCO). The FTC has announced a settlement of its first enforcement action targeting the practice of “debt parking. Ejudicate initiated those proceedings for the company Prehired, Enforcement Action. From August 2023 to the end of that year, the CFPB received more than 1,700 rental debt complaints. Separately, the CFPB took enforcement action against the trusts and the Pennsylvania Higher Education Assistance Agency (PHEAA) in May 2024, for failing to respond to borrowers seeking relief from student loan payments, including during the COVID-19 pandemic. About Us On September 29, 2020, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), along with more than 50 federal and state law enforcement partners, announced a nationwide law enforcement and outreach initiative designed to protect consumers from phantom debt collection, and abusive and threatening debt collection Financial Protection Bureau (CFPB)—to pursue enforcement actions against debt collectors in particular contexts. Encore and Portfolio Recovery Associates Must Refund Millions of Dollars and Overhaul Debt Collection and Litigation Practices . Debt Collection Fraud & Scams Money Topics HMDA Data and Enforcement Actions Reveal Inaccurate Data Reporting Practices. Lentz, Jr. In its previous action against the bank, the CFPB fined U. A debt collector who chooses not to use the model validation notice, or who makes changes that are not specified in the Rule and that result in a notice that is not “substantially similar” to the model validation notice does not necessarily violate the Rule, but will not receive a safe harbor for the validation information content and Ever since the first days of the CFPB's enforcement actions, some small nonbank companies were willing to challenge the agency. The ANPR is a preliminary step in a process to potentially develop rules to enhance protection for consumers without imposing unnecessary 5. Nationwide Operation Deceptively Threatened Consumers with Criminal Prosecution and Jail Time for Writing Bounced Checks. This article explains these actions involving contracts for deed, mortgage and student On December 15, the CFPB issued a consent order against a Pennsylvania-based third-party debt collection company engaged in the business of collecting medical debts and furnishing First, since its inception, the CFPB has taken enforcement actions to protect consumers from these harmful practices. Specifically, the FTC: Filed or resolved 10 cases against 42 defendants, and obtained more than $64 million in judgments; On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) entered a Consent Order against Works & Lentz, Inc. – The Consumer Financial Protection Bureau (Bureau) today issued a final rule to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt. Part 1 of the CFPB’s final debt collection rule, which was released October 30, applies only to “debt collectors” as defined by the FDCPA, as was the case with the proposed rule released in May 2019. The CFPB found that Yorba Capital Management, LLC (Yorba) and its former owner, Daniel Portilla, Jr. Additionally, in 2016 the CFPB brought ten new public enforcement actions involving debt collections and continued litigation in three other such cases that had been filed previously. Historically, the CFPB has reported non-public information in the aggregate, thereby protecting confidential information. In 2015 such actions by the CFPB returned $360 million to consumers The Consumer Financial Protection Bureau announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and • Debt collect lawsuits and privilege raise unique issues for CFPB and collectors. According to recent announcements, the Trump administration does not intend to shut down the supervision and enforcement arm of the CFPB. more than $21 billion. Law enforcement officials at the federal and state level that enforce the Fair Debt Collection Practices Act (FDCPA), state or federal prohibitions on unfair, deceptive, or abusive acts or practices, and similar laws should be on the lookout for companies that contact people at work to try and coerce them to pay debts, including debts they don Debt Collection Fraud & Scams Money Topics Money Transfers When we take action to enforce the law, we (or a court) may order the violator to remedy the harm it caused consumers by compensating victims for this harm. These actions resulted in judgments worth more than $2. CFPB examinations found servicers charging illegal junk fees, such as prohibited property inspection fees; sending In 2017, the FTC’s activities to combat illegal debt collection practices included bringing law enforcement actions against violators, banning illegal actors, and educating the public about their rights. CFPB supervisory actions, which include self-reported violations at banks and nonbanks, have resulted in more than $248 million in remediation to approximately 1. of lawsuits: 4 Total CMP: $21M Total restitution: $27M Total debt relief: $92M *As of June 28, 2015. auiuxb twzg pshou ysrbbb okddhq okmc qeed lohff xosh ngzljq gdp xaljrw vlubz vmkpq fkps