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Written By Digital Content Editor Thomas Ahearn
On March 23, 2023, the Consumer Financial Protection Bureau (CFPB) filed a proposed order that would require one of the largest debt collectors in America to pay more than $24 million for allegedly violating a 2015 CFPB order and other laws that included the Fair Credit Reporting Act (FCRA), according to a CFPB press release.
The proposed order would require the debt collector to pay more than $12 million to consumers harmed by its allegedly illegal debt collection practices and a $12 million penalty that would be deposited into the CFPB’s Civil Penalty Fund. The CFPB alleged the company violated the FCRA and its implementing Regulation V by:
- Failing to inform consumers about investigation outcomes.
- Failing to timely resolve disputes.
- Conducting unreasonable investigations.
The CFPB claims the company violated the 2015 order by collecting unsubstantiated debt, collecting debt without providing required documentation and disclosures to consumers, threatening legal action against consumers without offering required documentation, and suing to collect debt outside the statute of limitations.
In the complaint, the CFPB charged the debt collector with violating numerous requirements of the 2015 order during the five-year period the order was in effect and engaging in deceptive conduct in violation of the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act (CFPA).
“After getting caught red-handed in 2015, (the debt collector) continued violating the law through intimidation, deception, and illegal debt collection tactics and lawsuits,” said CFPB Director Rohit Chopra. “CFPB orders are not suggestions, and companies cannot ignore them simply because they are large or dominant in the market.”
Employment Screening Resources (ESR) is a service offering of ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. ClearStar helps employers make informed hiring decisions and remain FCRA-compliant. To learn more, contact ClearStar.
NOTE: Employment Screening Resources (ESR) – a service offering of ClearStar – does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.
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