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Tag Archives: CFPB

CFPB Pulls Back Curtain on Debt Collection and New Rules

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The Consumer Financial Protection Bureau (CFPB) has put out a new document with an extensive amount of information that paints the debt collection industry in a new light. One fact I found exceedingly interesting is the percentages of debts the debt collection industry handles, “medical and other health-related debts (36%), credit card debts (20%), telecom debts (13%), and student loan ... Read More »

    Debt Relief Company Officers to Face More Personal Liability From CFPB

    stressed man

    Indications out of the CFPB are that the agency plans to go after individuals in enforcement actions and not just companies. “In a speech last week to the Reuters Washington Summit, Director Cordray is reported to have indicated that the CFPB is committed to pursuing individuals, and not just companies, when exercising its enforcement authority.” The same report stated that ... Read More »

      Morgan Drexen Hits Speed Bump in Suit Against the CFPB

      head hanging

      Previously the somewhat debt settlement, social media, call center, software developing, reputation defending company Morgan Drexen in California sued the CFPB and challenged its constitutionality. I’ve written about that here, here, and here. On October 17th the United States District Court for the District of Columbia issued an opinion in the case. In the 29 page opinion, Judge Kollar-Kotelly had ... Read More »

        Morgan Drexen Sued by CFPB. Take That!

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        Recently the debt settlement company Morgan Drexen sued the Consumer Financial Protection Bureau, CFPB, hoping they would be declared unconstitutional and disbanded. For more, see this and this. Today the CFPB turned around and unloaded their long-term investigation into Morgan Drexen and filed suit against them. I’ll review the entire lawsuit tomorrow but for now, here is what the CFPB ... Read More »

          Does Moran Drexen’s Preferred Creditor Program Create a Problem for Consumers?

          old man headache

          Last week new information in the lawsuit between Morgan Drexen and the CFPB brought to light a commission compensated department called the Preferred Creditor Program. You can read that article, here. At least one commenter mentioned Morgan Drexen is not the only company to have such a program. If not, then an industry wide problem may exist here. One commenter ... Read More »

            Morgan Drexen Rumble With CFPB – Update

            cfpb

            Previously covered the suit filed by the debt settlement company Morgan Drexen against the CFPB, here. Today I went to see what, if any, updates there were on the case. Here is the latest: “The Court held two on the record telephone conference calls with the parties on July 24, 2013 and July 25, 2013, during which Plaintiffs consented to ... Read More »

              Think You Might Owe the CFPB Money in Penalties? Read This.

              black-hole

              Tomorrow the CFPB will publish final rules regarding the collection of money owed to the Consumer Financial Protection Bureau. It is very possible that fines levied against companies and individuals will fall under the rules. With tougher enforcements to come from the CFPB in the debt relief space, participants should be aware of the powers to collect the CFPB has ... Read More »

                Debt Collection Form Letters to Stop Debt Collectors in 5 Different Situations

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                The Consumer Financial Protection Bureau has published five letters consumers can use in certain circumstances to deal with abusive debt collection practices. It is important for consumers to be aware that while these form letters may be helpful, the letters are best used in the right situation and to accomplish a specific task. For example, asking a collector or creditor ... Read More »

                  August 2, 2013 is the Day for the New Debt Relief Industry

                  news-hot

                  I wrote extensively about the new coverage by the Consumer Financial Protection Bureau of rules that regulate the debt relief industry. See Here It Comes. CFPB Supervision of Debt Relief Industry and Credit Counseling. The new rules were published in the Federal Register on July 3, 2013 and will go into force on August 2, 2013. – Source Get Out ... Read More »

                    Here It Comes. CFPB Supervision of Debt Relief Industry and Credit Counseling.

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                    The CFPB has released their final rule covering nonbank providers and the rule appears to sweep up all of the debt relief world. The rule will become effective 30 days after publication in the Federal Register. It is my understanding this will be published on July 3, 2013. The CFPB rule making document makes it clear companies who believe they ... Read More »

                      CFPB Suit Against Debt Relief Company Should Make Industry Very Afraid

                      Boom goes the dynamite.

                      Yesterday the Consumer Financial Protection Bureau filed suit against American Debt Settlement Solutions, Inc. and Michael DiPanni. If you are in the debt relief industry you need to become painfully familiar with this suit because it will make you soil your pants. For the first time the CFPB has laid out its hand on what they feel is an abusive ... Read More »

                        Evidence CFPB Actively Investigating Next Generation Debt Settlement

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                        In what is the first big sign that the CFPB is tackling debt settlement, a tipster (send in your tips here) sent me a copy of a letter from the CFPB to Next Generation Debt Settlement. The letter states the Consumer Financial Protection Bureau issued a Civil Investigative Demand letter on August 3, 2012. The letter asked Next Generation Debt ... Read More »

                          Obama or Romney: Which One is Better for Debtors

                          Ready to Collapse

                          With the 2012 presidential election coming up and the choice left to either sitting President Barack Obama or Republican nominee Mitt Romney, anyone concerned about their personal finances might want to look at the positions of the two candidates and factor that into their voting strategy. Over the past four years the Democrats, and President Obama have been pushing for ... Read More »

                            CFPB Appears to Lay Ground Rules to Begin Enforcement in Debt Relief Industry

                            In a predatory move, the Consumer Financial Protection Bureau (CFPB) has issued a public request for comment over rules that could be used to regulate debt relief industry companies, both for-profit and not-for-profit. The document, “Procedural Rules to Establish Supervisory Authority over Certain Nonbank Covered Persons Based on Risk Determination” has been put out for public comment. Under this proposed ... Read More »

                              CFPB Sends Clear Message You Will Be Held Responsible for Your Affiliates and Lead Sources

                              Ready to Collapse

                              You absolutely can’t overlook the April 13th announcement from the Consumer Financial Protection Bureau about the liability that extends to any debt relief company by the actions of service providers. The CFPB will hold all appropriate companies accountable when legal violations occur with service providers you contract with. “Consumers are at a real disadvantage because they do not get to ... Read More »

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