On December 11, the Consumer Financial Protection Bureau issued an advisory warning to consumers about student loan debt relief companies. While the CFPB warns all student borrowers, in distress or otherwise, to steer clear of companies with aggressive marketing tactics that make promises that they can save student borrowers thousands of dollars on student loan
Debt Consulting Firm Settles with CFPB for $69,075
On December 4, the Consumer Financial Protection Bureau asked a federal district court to approve a settlement with a New Jersey debt settlement firm that would require the firm to pay a fine of $69,075 for allegedly charging consumers illegal upfront fees for debt-settlement services they never received.
The proposed consent order was filed in
New York Announces Sweeping New Regulation of the Debt Collection Industry
On Wednesday, December 3, 2014, New York Governor, Andrew Cuomo, announced new regulations aimed at “protect[ing] consumers against abusive and deceptive debt collection practices.” The press release issued by Governor Cuomo can be found here.
These regulations come from the New York Department of Financial Services and were first proposed in July 2013 and
CFPB Set to Hold Public Hearing on Medical Debt Collection in OKC
The Consumer Financial Protection Bureau has announced that it will hold a field hearing on medical debt collection in Oklahoma City, Oklahoma on December 11 at 11:00 a.m. CST.
According to the CFPB, the hearing will feature remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of
FHFA to Issue Risk Management Guidance for Nonbank Mortgage Servicers Today
Today is the deadline when the Federal Housing Finance Agency (FHFA) is scheduled to unveil its risk management guidance intended to curb financial and operational risks associated with loan servicing by nonbank entities.
The backdrop for FHFA’s initiative is the fact that the nation’s three largest nonbank mortgage servicers have tripled in size since 2012,
Prosecutors Charge Georgia Debt Collector with Illegal Collection Practices
The United States Attorney for the Southern District of New York this month brought criminal charges against Williams Scott & Associates LLC and seven of its employees for allegedly engaging in illegal practices to collect more than $4 million from 6,000 victims across the country.
The charges of conspiracy to commit wire fraud followed a
CFPB Delays Proposed Rulemakings on Overdraft, Payday Lending, and Debt Collection Until 2015
On November 25, the Consumer Financial Protection Bureau announced that it plans to push back three key rulemakings until next year. These rulemakings center on overdraft protection, payday lending, and debt collection. The agenda released by the CFPB stated that it would issue proposals on these issues in the first seven months of 2015. This
Pennsylvania A.G. Files Suit Against Payday Lender
Pennsylvania Attorney General Kathleen G. Kane recently filed a consumer protection lawsuit against Think Finance, a Texas-based company, for allegedly engineering an illegal payday loan scheme over the Internet. The lawsuit, filed in the Court of Common Pleas of Philadelphia County, alleges that the company targets Philadelphia consumers in violation of state law.
The suit
Maine’s Attorney General Issues Warning to Residents Regarding Calls from “Scammers”
On November 14, Maine’s Attorney General Janet T. Mills issued a warning to the state’s residents regarding calls from “scammers” demanding immediate payment on supposed debts. Mills’ warning stemmed from many recent reports to her office of aggressive calls from “scammers” attempting to get consumers to make payments by wire transfer or pre-paid debit card.
Business Aimed at Fraud Victims Suspends Operations while Litigating with FTC and Florida AG
Following lawsuits filed against it this month by the Federal Trade Commission and Florida Attorney General Pam Bondi, Consumer Collection Advocates Corp. (CCA) and its principal agreed to suspend operations in Florida, pending the outcome of the litigation.
According to the complaints by the FTC and the Florida Attorney General, CCA contracted with fraud