Stark Law Phantom Debt Scheme Results in Checks Sent to Consumers

It took a long time but an Illinois company, Stark Law, is finally repaying consumers some money from a suit that was originally started by the State of Illinois in 2016. In that suit, Stark Law, Stark Legal, Ashton Asset Management, CHM Capital Group, Capital Harris Miller & Associates, HKM Funding, Pacific Capital Holdings, Charles … Read more

Defendants in Two Phantom Debt Cases Will Be Banned from Debt Collection Industry

South Carolina companies used robocalls, illegal threats to convince consumers to pay non-existent debts Defendants in two Federal Trade Commission cases will be permanently banned from the debt collection industry as part of settlements resolving FTC charges they threatened consumers with legal action to collect on debts that did not exist. In complaints filed as … Read more

NC Woman Falsely Collected and Settled Random Debts Owed to Others

U.S. Attorney Andrew Murray announced that Carissa Eugenia Brown, 33, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to orchestrating a $1.9 million debt collection scheme. Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) and Tommy D. Coke, Inspector … Read more

RAB Performance Recoveries Caught Being a Bad Debt Collector

The Consumer Financial Protection Bureau (Bureau) issued a consent order against RAB Performance Recoveries, LLC (RAB) for threatening to sue and suing consumers to collect debts where it did not have a legally required license to do so. Through 2012, RAB, a New Jersey company, purchased and collected consumer debts from debt brokers, and through … Read more

Debt Collectors Slammed for Parking Debt on Credit Reports

The Federal Trade Commission has taken action against a debt collection company that allegedly placed bogus or highly questionable debts onto consumers’ credit reports to coerce them to pay the debts. Under a settlement with the FTC, the company, Midwest Recovery Systems (Midwest Recovery), is prohibited from the practice, known as “debt parking,” and required … Read more

CFPB Issues Final Regulation F Debt Collection Rules – Debt Settlement

Graph Chart

The Consumer Financial Protection Bureau (CFPB) has published the final rules that modify the Fair Debt Collection Practices Act. These rules amend Regulation F, 12 CFR part 1006, which implements the FDCPA. If you really want to take a deep dive into the changes, read CFPB Updates Fair Debt Collection Practices Act – What You … Read more

CFPB Updates Fair Debt Collection Practices Act – What You Need to Know

The Consumer Financial Protection Bureau (CFPB) has issued its final rule to update the Fair Debt Collection Practices Act (FDCPA). The FDCPA provides the framework of rules that serve to protect consumers from abusive debt collection practices. [November 30,2020 – The final rules were published here.] The CFPB states the following important changes are part … Read more

FTC Acts to Shut Down Unlawful Debt Collection Operation

A federal court has shut down an Atlanta-based debt collector in response to a Federal Trade Commission complaint alleging that its agents threatened consumers with arrest and imprisonment and tried to collect debts that consumers did not actually owe. The FTC’s complaint alleges that Critical Resolution Mediation LLC’s collectors regularly posed as law enforcement officers, … Read more

Debt Collectors Still Have Time to Kick You While You Are Down

Earlier this year, the pandemic swept across the country, killing 100,000 Americans by the spring, shuttering businesses and schools, and forcing people into their homes. It was a great time to be a debt collector. In August, Encore Capital, the largest debt buyer in the country, announced that it had doubled its previous record for … Read more

Regulators Pounce on Phantom and Abusive Debt Collectors

The Federal Trade Commission, along with 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. This crackdown encompasses more than 50 enforcement actions against debt collectors engaged in these illegal practices brought … Read more

Collection Companies That Threatened Jail and More Are Sued by CFPB

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 debts. The company … Read more

CFPB Sues Asset Acceptance, Encore and Midland for Collection Practices

The Consumer Financial Protection Bureau (CFPB) has Encore Capital Group, Inc. and its subsidiaries, Midland Funding, LLC; Midland Credit Management, Inc.; and Asset Acceptance Capital Corp. The CFPB says, “Encore and its subsidiaries are currently subject to a 2015 consent order with the Bureau based on the Bureau’s previous findings that they violated the Consumer … Read more

They Sued Thousands of Borrowers During the Pandemic

A Silicon Valley-based installment lender that caters to Latino immigrants announced on Tuesday that it would drop all the lawsuits it has filed against borrowers who fell behind on payments, including during the coronavirus pandemic. Oportun Inc. also said it would cap interest rates on new loans at 36% — a percentage that consumer advocates … Read more

Supreme Court Appears to Make Federal Student Loan Debt Collection Calls to Cellphones – Not Allowed

The decision posted today from the Supreme Court was about debt collection calls to cellphones when a debt is owed to the government. Wellfederal student loans are owed to the government so it sure seems to apply. The charge against these types of calls was led by the Court more conservative Justices’. Justice Kavanaugh wrote … Read more